UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _______to_______

	Exact name of registrant as specified in its charter,
Commission	state of incorporation, address of principal	I.R.S. Employer
File Number	executive offices and telephone number	Identification Number
001-38515	EVERGY, INC.	82-2733395

(a Missouri corporation)

1200 Main Street

Kansas City, Missouri 64105

(816) 556-2200

001-03523 EVERGY KANSAS CENTRAL, INC. 48-0290150

(a Kansas corporation)

818 South Kansas Avenue

Topeka, Kansas 66612

(785) 575-6300

000-51873 EVERGY METRO, INC. 44-0308720

(a Missouri corporation)

1200 Main Street

Kansas City, Missouri 64105

(816) 556-2200

	Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Evergy, Inc. common stock	EVRG	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Evergy Kansas Central, Inc. Common Stock $0.01 par value and Evergy Metro, Inc. Common Stock without par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Evergy, Inc.

Yes

☒

No

☐

Evergy Kansas Central, Inc.

Yes

☐

No

☒

Evergy Metro, Inc.

Yes

☐

No

☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Evergy, Inc.

Yes

☐

No

☒

Evergy Kansas Central, Inc.

Yes

☐

No

☒

Evergy Metro, Inc.

Yes

☐

No

☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Evergy, Inc.

Yes

☒

No

☐

Evergy Kansas Central, Inc.

Yes

☒

No

☐

Evergy Metro, Inc.

Yes

☒

No

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Evergy, Inc.

Yes

☒

No

☐

Evergy Kansas Central, Inc.

Yes

☒

No

☐

Evergy Metro, Inc.

Yes

☒

No

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Evergy, Inc.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Kansas Central, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

☒

Smaller Reporting Company

☐

Emerging Growth Company

☐

Evergy Metro, Inc.

Large Accelerated Filer

☐

Accelerated Filer

☐

Non-accelerated Filer

☒

Smaller Reporting Company

☐

Emerging Growth Company

☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Evergy, Inc.

Yes

☒

No

☐

Evergy Kansas Central, Inc.

Yes

☐

No

☒

Evergy Metro, Inc.

Yes

☐

No

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Evergy, Inc.

☐

Evergy Kansas Central, Inc.

☐

Evergy Metro, Inc.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Evergy, Inc.	Yes	☐	No	☒
Evergy Kansas Central, Inc.	Yes	☐	No	☒
Evergy Metro, Inc.	Yes	☐	No	☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of Evergy, Inc. (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2021) was approximately $13,704,717,320. All of the common equity of Evergy Kansas Central, Inc. and Evergy Metro, Inc. is held by Evergy, Inc.

On February 18, 2022, Evergy, Inc. had 229,311,689 shares of common stock outstanding.

On February 18, 2022, Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had one share of common stock outstanding and held by Evergy, Inc.

Evergy Kansas Central, Inc. and Evergy Metro, Inc. meet the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and are therefore filing this Form 10-K with the reduced disclosure format.

Documents Incorporated by Reference

Portions of the 2022 annual meeting proxy statement of Evergy, Inc. to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report.

This combined annual report on Form 10-K is provided by the following registrants: Evergy, Inc. (Evergy), Evergy Kansas Central, Inc. (Evergy Kansas Central) and Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.

TABLE OF CONTENTS
		Page Number
	Cautionary Statements Regarding Certain Forward-Looking Information	3
	Glossary of Terms	5
PART I
Item 1.	Business	7
Item 1A.	Risk Factors	16
Item 1B.	Unresolved Staff Comments	28
Item 2.	Properties	29
Item 3.	Legal Proceedings	32
Item 4.	Mine Safety Disclosures	32
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	33
Item 6.	Selected Financial Data	32
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 8.	Financial Statements and Supplementary Data	62
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	153
Item 9A.	Controls and Procedures	153
Item 9B.	Other Information	157
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	157
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	157
Item 11.	Executive Compensation	158
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	158
Item 13.	Certain Relationships and Related Transactions, and Director Independence	159
Item 14.	Principal Accounting Fees and Services	159
PART IV
Item 15.	Exhibits and Financial Statement Schedules	161
	Signatures	184

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CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION

Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy's strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost of generation resources and energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "should," "could," "may," "seeks," "intends," "proposed," "projects," "planned," "target," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; changes in business strategy or operations; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of the Coronavirus (COVID-19) pandemic on, among other things, sales, results of operations, financial condition, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, including changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; the transition to a replacement for the London Interbank Offered Rate (LIBOR) benchmark interest rate; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks and other disruptions to the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays and cost increases of generation, transmission, distribution or other projects; the Evergy Companies' ability to manage their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to the Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence Evergy's strategic plan, financial results or operations; the possibility that strategic initiatives, including mergers, acquisitions and divestitures, and long-term financial plans, may not create the value that they are expected to achieve in a timely manner or at all; difficulties in maintaining relationships with customers, employees, regulators or suppliers; and other risks and uncertainties.

This list of factors is not all-inclusive because it is not possible to predict all factors. You should also carefully consider the information contained in our other filings with the Securities and Exchange Commission (SEC). Additional risks and uncertainties are discussed in Part I, Item 1A - Risk Factors in this annual report on Form 10-K, and from time to time in current reports on Form 8-K and quarterly reports on Form 10-Q filed by the Evergy

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Companies with the SEC. Each forward-looking statement speaks only as of the date of the particular statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

AVAILABLE INFORMATION

The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at sec.gov. Additionally, information about the Evergy Companies, including their combined annual reports on Form 10-K, combined quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with the SEC, is also available through the Evergy Companies' website, http://investors.evergy.com. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC.

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations section of their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Evergy Companies' website is not part of this document.

4

GLOSSARY OF TERMS 

The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report.

Abbreviation or Acronym	Definition
AAO	Accounting authority order
ACE	Affordable Clean Energy
AEP	American Electric Power Company, Inc.
AFUDC	Allowance for funds used during construction
AMT	Alternative Minimum Tax
AOCI	Accumulated other comprehensive income
AROs	Asset retirement obligations
ASU	Accounting Standards Update
Bluescape	Bluescape Energy Partners, LLC
BSER	Best system of emission reduction
CAA	Clean Air Act Amendments of 1990
CCRs	Coal combustion residuals
CO2	Carbon dioxide
COLI	Corporate-owned life insurance
COVID-19	Coronavirus
CPP	Clean Power Plan
CSAPR	Cross-State Air Pollution
CWA	Clean Water Act
EIRR	Environmental Improvement Revenue Refunding
ELG	Effluent limitations guidelines
EPA	Environmental Protection Agency
EPS	Earnings per common share
ERISA	Employee Retirement Income Security Act of 1974, as amended
ERSP	Earnings Review and Sharing Plan
Evergy	Evergy, Inc. and its consolidated subsidiaries
Evergy Board	Evergy Board of Directors
Evergy Companies	Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group
Evergy Kansas Central	Evergy Kansas Central, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Kansas South	Evergy Kansas South, Inc., a wholly-owned subsidiary of Evergy Kansas Central
Evergy Metro	Evergy Metro, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
Evergy Missouri West	Evergy Missouri West, Inc., a wholly-owned subsidiary of Evergy
Evergy Transmission Company	Evergy Transmission Company, LLC
Exchange Act	The Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
February 2021 winter weather event	Significant winter weather event in February 2021 that resulted in extremely cold temperatures over a multi-day period across much of the central and southern United States
FERC	Federal Energy Regulatory Commission
FMBs	First Mortgage Bonds

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Abbreviation or Acronym	Definition
GAAP	Generally Accepted Accounting Principles
GHG	Greenhouse gas
Great Plains Energy	Great Plains Energy Incorporated
JEC	Jeffrey Energy Center
KCC	State Corporation Commission of the State of Kansas
KDHE	Kansas Department of Health & Environment
KEEIA	Kansas Energy Efficiency Investment Act
kV	Kilovolt
kWh	Kilowatt hour
LEC	Lawrence Energy Center
MDNR	Missouri Department of Natural Resources
MECG	Midwest Energy Consumers Group
MEEIA	Missouri Energy Efficiency Investment Act
MPSC	Public Service Commission of the State of Missouri
MW	Megawatt
MWh	Megawatt hour
NAAQS	National Ambient Air Quality Standards
NAV	Net asset value
NOL	Net operating loss
NRC	Nuclear Regulatory Commission
OCI	Other comprehensive income
OPC	Office of the Public Counsel
Prairie Wind	Prairie Wind Transmission, LLC, 50% owned by Evergy Kansas Central
RSU	Restricted share unit
RTO	Regional transmission organization
SEC	Securities and Exchange Commission
SIP	State implementation plan
SPP	Southwest Power Pool, Inc.
TDC	Transmission delivery charge
TFR	Transmission formula rate
Transource	Transource Energy, LLC and its subsidiaries, 13.5% owned by Evergy Transmission Company
UFSA	Utility Financing and Securitization Act
VIE	Variable interest entity
Wolf Creek	Wolf Creek Generating Station

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PART I

ITEM 1. BUSINESS

General

Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. are separate registrants filing this combined annual report on Form 10-K. The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.

Information in other Items of this report as to which reference is made in this Item 1 is hereby incorporated by reference in this Item 1. The use of terms such as "see" or "refer to" shall be deemed to incorporate into this Item 1 the information to which such reference is made.

EVERGY, INC.

Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.

•Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).

•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.

•Evergy Missouri West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.

•Evergy Transmission Company, LLC (Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kilovolt (kV) double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

Evergy Kansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West conduct business in their respective service territories using the name Evergy. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). Evergy serves approximately 1,640,800 customers located in Kansas and Missouri. Customers include approximately 1,433,500 residences, 199,400 commercial firms and 7,900 industrials, municipalities and other electric utilities. Evergy is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.

7

Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders. The core tenets of Evergy's strategy are as follows:

•Affordability – working to keep rates affordable and improve regional rate competitiveness;

•Reliability – targeting top-tier performance in reliability, customer service and generation; and

•Sustainability – advancing ongoing CO2 emissions reductions and generation fleet transition.

See Item 7, Management's Discussion and Analysis of Financial Operations (MD&A) - Executive Summary – Strategy, for additional information.

The table below summarizes the percentage of Evergy's revenues by customer classification.

	2021	2020	2019
Residential	34%	39%	37%
Commercial	30%	33%	35%
Industrial	11%	12%	12%
Wholesale	13%	5%	7%
Transmission	6%	6%	6%
Other	6%	5%	3%
Total	100%	100%	100%

The table below summarizes the percentage of Evergy's retail electricity sales by customer class.

	2021	2020	2019
Residential	37%	38%	36%
Commercial	42%	42%	43%
Industrial	21%	20%	21%
Total	100%	100%	100%

Regulation

Evergy Kansas Central's and Evergy Metro's Kansas operations are regulated by the State Corporation Commission of the State of Kansas (KCC) and Evergy Metro's Missouri operations and Evergy Missouri West are regulated by the Public Service Commission of the State of Missouri (MPSC), in each case with respect to retail rates, certain accounting matters, standards of service and, in certain cases, the issuance of securities, certification of facilities and service territories. The Evergy Companies are also subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and rates, the issuance of securities in certain cases and other matters. Evergy has an indirect 94% ownership interest in Wolf Creek Generating Station (Wolf Creek), which is subject to regulation by the Nuclear Regulatory Commission (NRC) with respect to licensing, operations and safety-related requirements.

The table below summarizes the rate orders in effect for Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's retail rate jurisdictions.

	Regulator	Allowed Return on Equity	Rate-Making Equity Ratio	Effective Date
Evergy Kansas Central (a)	KCC	9.3%	51.46%	September 2018
Evergy Metro - Kansas	KCC	9.3%	49.09%	December 2018
Evergy Metro - Missouri	MPSC	(b)	(b)	December 2018
Evergy Missouri West	MPSC	(b)	(b)	December 2018

(a) The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis.

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(b) Evergy Metro's and Evergy Missouri West's current MPSC rate orders do not contain an allowed return on equity or rate-making equity ratio.

Evergy expects its 2022 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues.

See Item 7 MD&A, Critical Accounting Policies section, and Note 4 to the consolidated financial statements for additional information concerning regulatory matters.

Competition

Missouri and Kansas continue to operate on the fully integrated and regulated retail utility model. As a result, the Evergy Companies do not compete with others to supply and deliver electricity in their franchised service territories in exchange for agreeing to have their terms of service regulated by state regulatory bodies. If Missouri or Kansas were to pass and implement legislation authorizing or mandating retail choice, Evergy may no longer be able to apply regulated utility accounting principles to deregulated portions of its operations, which may require a surcharge to recover certain costs from legacy customers or could lead to a write-off of certain regulatory assets and liabilities.

Evergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service territory. This competition primarily occurs within the SPP Integrated Marketplace, in which Evergy Kansas Central, Evergy Metro and Evergy Missouri West are participants. This marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time for maximum regional cost-effectiveness.

The SPP Integrated Marketplace is similar to other Regional Transmission Organization (RTO) or Independent System Operator (ISO) markets currently operating in other regions of the United States.

Power Supply

Evergy has approximately 15,400 megawatts (MWs) of owned generating capacity and renewable power purchase agreements. Evergy's owned generation and power purchases from others, as a percentage of total megawatt hours (MWhs) generated and purchased, was approximately 70% and 30%, respectively, over the last three years. Evergy purchases power to meet its customers' needs, to satisfy firm power commitments or to meet renewable energy standards. Management believes Evergy will be able to meet its future power purchase needs due to the coordination of planning and operations in the SPP region and existing power purchase agreements; however, price and availability of power purchases may be impacted during periods of high demand or reduced supply.

Evergy's total capacity by fuel type, including both owned generating capacity and power purchase agreements, is detailed in the table below.

Fuel Type	Estimated 2022 MW Capacity	Percent of Total Capacity
Coal	5,913	38	%
Wind (a)	4,326	28
Natural gas and oil	3,971	26
Uranium	1,108	7
Solar, landfill gas and hydroelectric (b)	78	1
Total capacity	15,396	100	%

(a) MWs are based on nameplate capacity of the wind facility. Includes owned generating capacity of 579 MWs and long-term power purchase agreements of approximately 3,747 MWs of wind generation that expire from 2028 through 2048. See Item 2, Properties, for additional information.

(b) Includes a long-term power purchase agreement for approximately 66 MWs of hydroelectric generation that expires in 2023.

Evergy's projected peak summer demand for 2022 is approximately 10,200 MWs. Evergy expects to meet its projected capacity requirements for 2022 with its existing generation assets and power purchases. See

9

"Transitioning Evergy's Generation Fleet" below for further information regarding Evergy's long-term strategy with regards to its generating assets and power purchases.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP. The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and competitive wholesale electricity prices in the region. As SPP members, Evergy Kansas Central, Evergy Metro and Evergy Missouri West are required to maintain a minimum reserve margin of 12%. This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply.

Environmental Matters

The Evergy Companies are subject to extensive and evolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety. For example, Evergy Kansas Central, Evergy Metro and Evergy Missouri West combust large amounts of fossil fuels in the production of electricity, which results in significant emissions of carbon dioxide (CO2) and other greenhouse gases (GHG). Federal legislation regulates the emission of GHGs and numerous states and regions have adopted programs to stabilize or reduce GHG emissions. The Environmental Protection Agency (EPA), the Kansas Department of Health and Environment (KDHE) and the Missouri Department of Natural Resources (MDNR) regulate emissions under the Clean Air Act Amendments of 1990 (CAA), water under the Clean Water Act (CWA) and waste management under the Resource Conservation and Recovery Act (RCRA), among other laws and regulations. See Note 14 to the consolidated financial statements for additional information. There have been, and management believes there will continue to be, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency. These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' results of operations, financial position and cash flows. See Part I, Item 1A, Risk Factors, for additional information.

The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses. For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change. In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency. Much of the Evergy Companies' infrastructure is aged, and grid resiliency efforts include building additional transmission and distribution lines, replacing aged infrastructure and proactively managing the vegetation that can damage systems during severe weather. The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion.

Transitioning Evergy's Generation Fleet

The Evergy Companies are committed to a long-term strategy to reduce CO2 emissions in a cost-effective and reliable manner. In 2021, Evergy achieved a reduction of CO2 emissions by about half from 2005 levels. Evergy has a goal to achieve net-zero CO2 emissions by 2045, which includes an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030. The trajectory and timing of reaching Evergy's net-zero CO2 emissions goal are dependent on enabling technology developments, the reliability of the power grid, and supportive energy policies and regulations and could also be impacted by political, legal and regulatory actions.

Public attention is currently focused on transitioning to a low carbon future, including reducing GHG emissions and closing coal-fired generating units. Diversity of fuel supply has historically provided cost and reliability benefits. For example, because renewable generation is intermittent, diversity of baseload generation, including a mix of coal and natural gas, has helped to maintain a consistent availability of power. In addition, the Evergy Companies must prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates. The Evergy Companies use a triennial integrated resource plan, which is 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 integrated resource plan considers forecasts of future electricity demand, fuel prices, transmission improvements,

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new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives. Strategies that the Evergy Companies are pursuing to reduce emissions include:

•retiring fossil fuel generation;

•developing renewable energy facilities;

•collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and

•investing in customer energy efficiency programs.

Since 2005, the Evergy Companies have added over 4,400 MWs of renewable generation, while retiring more than 2,400 MWs of fossil generation. See Item 2, Properties, for additional information regarding the Evergy Companies' renewable generation resources. The Evergy Companies are also committed to transparency. On its website, http://investors.evergy.com, Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water. The contents of the website, including reports and documents contained therein, are not incorporated into this filing.

See Note 14 to the consolidated financial statements for information regarding environmental matters.

Fuel

The fuel sources for Evergy's owned generation and power purchase agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 2021 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.

			Fuel cost in cents per
	Fuel Mix(a)		net kWh delivered (b)
	Actual		Actual
Fuel	2021		2021
Coal	50	%	1.94¢
Wind, hydroelectric, landfill gas and solar	30		2.06
Uranium	16		0.64
Natural gas and oil	4		11.72
Total	100	%	2.12

(a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable power purchase agreements.

(b) Fuel cost in cents per net kWh delivered includes costs associated with renewable power purchase agreements.

Coal

During 2022, Evergy's generating units, including jointly-owned units, are projected to use approximately 19 million tons of coal. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers. The coal to be provided under these contracts is expected to satisfy approximately 85% of the projected coal requirements for 2022 and approximately 10% for each of 2023 and 2024. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy almost all of the projected transportation requirements for 2022, 2023 and 2024. The contract rates adjust for changes in railroad costs.

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Nuclear Fuel

Evergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through the first quarter of 2030. The owners also have under contract all the uranium fabrication services required to operate Wolf Creek through 2045.

Natural Gas

Evergy purchases natural gas for use in its generating units primarily through spot market purchases. From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about Evergy's exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk.

Evergy Kansas Central maintains natural gas transportation arrangements with Southern Star Central Gas Pipeline, Inc. The Southern Star Central Gas Pipeline, Inc. arrangement expires based on the generating unit being served with expiration dates from 2022 to 2030.

Customer Energy Efficiency Programs

The Evergy Companies have implemented, and continue to offer, energy efficiency programs to help customers with their energy efficiency needs and to help manage energy costs. Both Missouri and Kansas have passed legislation promoting the implementation of cost-effective demand-side management programs and allowing for the recovery of these program costs from customers, along with the potential to earn performance incentives based upon certain criteria.

In Missouri, Evergy Metro and Evergy Missouri West currently offer a suite of energy efficiency programs for customers under the Missouri Energy Efficiency Investment Act (MEEIA). The current portfolio of programs was approved by the MPSC in 2019 and provides for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved. The costs of the programs are recovered from customers through a rider mechanism. Evergy Metro's and Evergy Missouri West's current MEEIA programs as authorized by the MPSC expire at the end of 2022 and Evergy Metro and Evergy Missouri West currently anticipate requesting an extension of these programs.

In Kansas, Evergy Kansas Central and Evergy Metro requested KCC authorization in December 2021 for a suite of energy efficiency programs for customers under the Kansas Energy Efficiency Investment Act (KEEIA). The requested portfolio of programs would provide for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved. The costs of the program would be recovered from customers through a rider mechanism. Evergy Kansas Central's and Evergy Metro's proposed programs would be effective in 2023 and would expire in 2026. The KCC's decision on Evergy Kansas Central's and Evergy Metro's KEEIA request is expected in the second half of 2022.

Human Capital Resources

At December 31, 2021, the Evergy Companies had 4,930 employees, including 2,632 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW) and one local union of the United Government Security Officers of America (UGSOA). The Evergy Companies currently have three labor agreements that expire in 2024 and three labor agreements currently under negotiation that have expired and are operating under an extension. The Evergy Companies employ 1,750 generation employees, 1,452 transmission and distribution employees and 1,728 support employees that work primarily in the states of Kansas and Missouri.

Evergy's mission is to empower a better future and a key component of this mission is maintaining a culture that emphasizes safety, integrity, ownership and adaptability.

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Safety is a crucial part of Evergy's values. The components of Evergy's safety program include a strong management commitment to a safety-conscious work environment, hazard recognition and control, worksite analysis, contractor safety management and training. Evergy also conducts regular safety audits and assessments. During the COVID-19 pandemic, Evergy has prioritized the safety of its employees while continuing to serve its customers and community by providing appropriate personal protective equipment, establishing additional training and protocols and directing employees to work remotely when possible.

Evergy is also working to build a more diverse and inclusive workforce through recruiting and hiring practices, performance management, training and data analysis and reporting initiatives. As of December 31, 2021, Evergy's workforce was 77% male and 23% female, and women represented 24% of Evergy's officer team. The ethnicity of Evergy's workforce was 85% White, 5% Black, 4% Hispanic and 6% other.

Evergy offers a competitive package of compensation and benefits to attract and retain talented employees, including market-competitive pay, healthcare and retirement benefits, paid time off, family leave and tuition reimbursement. Evergy also allows employees to participate in a comprehensive well-being program that includes health and wellness-related activities and incentives, business resource groups, gym membership reimbursement, paid volunteer hours, charitable donation match and free access to an employee assistance program.

Information About Evergy's Executive Officers

Set forth below is information relating to the executive officers of Evergy, Inc. Each executive officer holds the same position with each of Evergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas South, Inc. and Evergy Missouri West, Inc. as the executive officer holds with Evergy, Inc. Executive officers serve at the pleasure of the board of directors. There are no family relationships among any of the executive officers, nor any arrangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer.

Name	Age	Current Position(s)	Year First Assumed an Officer Position
David A. Campbell (a)	53	President and Chief Executive Officer	2021
Kirkland B. Andrews(b)	54	Executive Vice President and Chief Financial Officer	2021
Kevin E. Bryant (c)	46	Executive Vice President and Chief Operating Officer	2006
Gregory A. Greenwood (d)	56	Executive Vice President and Chief Strategy Officer	2003
Lesley L. Elwell (e)	51	Senior Vice President and Chief Human Resources Officer	2021
Charles A. Caisley (f)	48	Senior Vice President, Public Affairs and Chief Customer Officer	2011
Heather A. Humphrey (g)	51	Senior Vice President, General Counsel and Corporate Secretary	2010
Charles L. King (h)	57	Senior Vice President and Chief Technology Officer	2013
Steven P. Busser (i)	53	Vice President and Chief Accounting Officer	2014

(a)Mr. Campbell was appointed President and Chief Executive Officer of Evergy, Inc. in January 2021. Mr. Campbell previously served as Executive Vice President and Chief Financial Officer of Vistra Energy Corp. (2019-2020), as President and Chief Executive Officer of InfraREIT, Inc. and President of Hunt Utility Services (2014-2019), as President and Chief Executive Officer of Sharyland Utilities (2016-2019), as President and Chief Operating Officer of Bluescape Resources (2013-2014) and in various roles with TXU Corp. and its affiliated entities after joining the firm in 2004.

(b)Mr. Andrews was appointed Executive Vice President and Chief Financial Officer of Evergy, Inc. in February 2021. Mr. Andrews previously served as Executive Vice President and Chief Financial Officer of NRG Energy, Inc. (2011-2021) and as Executive Vice President, Chief Financial Officer of Clearway Energy, Inc. (2012-2016). Mr. Andrews also served as Managing Director and Co-Head Investment Banking, Power and Utilities - Americas at Deutsche Bank Securities (2009-2011), and in several capacities at Citigroup Global Markets Inc., including Managing Director, Group Head, North American Power (2007-2009) and Head of Power M&A, Mergers and Acquisitions (2005-2007).

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(c)Mr. Bryant was appointed Executive Vice President and Chief Operating Officer of Evergy, Inc. in June 2018. Mr. Bryant previously served as Senior Vice President - Finance and Strategy and Chief Financial Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2015-2018). He previously served as Vice President - Strategic Planning of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014). He served as Vice President - Investor Relations and Strategic Planning and Treasurer of Great Plains Energy Incorporated (Great Plains Energy), Evergy Metro and Evergy Missouri West (2013). He served as Vice President - Investor Relations and Treasurer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2013). He was Vice President - Strategy and Risk Management of Evergy Metro and Evergy Missouri West (2011) and Vice President - Energy Solutions of Evergy Metro (2006-2011) and Evergy Missouri West (2008-2011).

(d)Mr. Greenwood was appointed Executive Vice President and Chief Strategy Officer of Evergy, Inc. in August 2021. He previously served as Executive Vice President, Strategy and Chief Administrative Officer of Evergy, Inc. (2018-2021). Mr. Greenwood previously served in the following officer roles for Evergy Kansas Central: Senior Vice President, Strategy (2011-2018); Vice President, Major Construction Projects (2006-2011); and Treasurer (2003-2006). Mr. Greenwood also served in the following roles for Evergy Kansas Central: Executive/Senior Director, Corporate Finance (1999-2003); Director, Financial Strategy and Acting Director, Internal Audit (1999-2000); and Director, Financial Strategy (1998-1999). Mr. Greenwood joined Evergy Kansas Central in 1993. Mr. Greenwood intends to retire in the middle of 2022 and transition to an advisory role thereafter through 2024.

(e)Ms. Elwell was appointed Senior Vice President and Chief Human Resources Officer of Evergy, Inc. in September 2021. Ms. Elwell previously served as Chief People Officer at JE Dunn (2017-2021), as Vice President People Strategy / HR Business Partner of Walmart Corporation (2016-2017), as Vice President HR Business Partner Operations at DIRECTV (2012-2015), and in various roles of increasing responsibility, including as Vice President, with Sprint (1997-2012; 2015-2016).

(f)Mr. Caisley was appointed Senior Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. in August 2021. He previously served as Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. (2018-2021). Mr. Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008).

(g)Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary of Evergy, Inc. in June 2018. Ms. Humphrey previously served as Senior Vice President - Corporate Services and General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2016-2018). She previously served as General Counsel (2010-2016) and Senior Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2012-2016). She served as Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010) and Managing Attorney of Evergy Metro (2007-2010).

(h)Mr. King was appointed Senior Vice President and Chief Technology Officer of Evergy, Inc. in February 2020. He previously served as Senior Vice President, Information Technology and Chief Information Officer (2019) and Vice President, Information Technology and Chief Information Officer (2018-2019) of Evergy, Inc. Prior to that, he served as Vice President - Information Technology (2013-2018), as Senior Director of Information Technology Applications and Delivery (2013) and Director of Information Technology Applications (2011-2013) of Evergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CenturyLink, Sprint and Accenture.

(i)Mr. Busser was appointed Vice President and Chief Accounting Officer of Evergy, Inc. in February 2022. He previously served as Vice President - Risk Management and Controller of Evergy, Inc. (2018-2022). Mr. Busser was appointed Vice President - Risk Management and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West in 2016. He previously served as Vice President - Business Planning and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014-2016). He served as Vice President - Treasurer of El Paso Electric Company (2011-2014). Prior to that, he served as Vice President - Treasurer and Chief Risk Officer (2006-2011) and Vice President - Regulatory Affairs and Treasurer (2004-2006) of El Paso Electric Company.

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Evergy Kansas Central, Inc.

Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 730,800 customers located in central and eastern Kansas. Customers include approximately 631,300 residences, 94,000 commercial firms, and 5,500 industrials, municipalities and other electric utilities. Evergy Kansas Central's retail revenues averaged approximately 74% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for the remainder of Evergy Kansas Central's revenues. Evergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.

Evergy Metro, Inc.

Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Metro serves approximately 571,500 customers located in western Missouri and eastern Kansas. Customers include approximately 505,000 residences, 64,600 commercial firms, and 1,900 industrials, municipalities and other electric utilities. Evergy Metro's retail revenues averaged approximately 88% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of Evergy Metro's revenues. Evergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for Evergy Metro averaged approximately 55% and 45%, respectively, of total retail revenues over the last three years.

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ITEM 1A. RISK FACTORS

Utility Regulatory Risks:

Prices are established by regulators and may not be sufficient to recover costs or provide for a return on investment.

The prices that the FERC, KCC and MPSC authorize the utility subsidiaries of Evergy to charge significantly influence the Evergy Companies' results of operations, financial position and cash flows.

In general, utilities are allowed to recover in customer rates costs that were prudently incurred to provide utility service, plus a reasonable return on invested capital.  There can be no assurance, however, that regulators will determine costs to have been prudently incurred. Further, the amounts approved by the regulators may not be sufficient to allow for a recovery of costs or provide for an adequate return on and of capital investments. Also, amounts that were approved by regulators may be appealed, modified, limited or eliminated by subsequent regulatory or legislative actions. A failure to recover costs or earn a reasonable return on invested capital could have a material adverse effect on the results of operations, financial position and cash flows of Evergy and its utility subsidiaries.

The Evergy Companies are also exposed to cost-recovery shortfalls due to the inherent "regulatory lag" in the rate-setting process. This is because utility rates are generally based on historical information and, except for certain situations where regulators allow for recovery of expenses through use of a formula that tracks costs, are not subject to adjustment between rate cases. Evergy Kansas Central and Evergy Metro agreed to a five-year base rate moratorium in Kansas beginning in December 2018. In addition, Evergy Metro and Evergy Missouri West utilize a plant-in service accounting (PISA) legislative mechanism in Missouri, which requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case and limits the extent to which prices can increase thereafter to approximately 3% on an annualized basis. Evergy Metro and Evergy Missouri West are currently operating under PISA constraints. Each filed general rate cases in 2022 and will be subject to PISA constraints for three years following conclusion of the general rate cases. The rate cases are expected to conclude by December 2022. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.

Furthermore, while inflation has been relatively muted in recent years, during 2021, the United States' economy experienced a substantial rise in the inflation rate. While the Federal Reserve Bank has announced certain measures to combat rising inflation, there is increased uncertainty in the near-term outlook as to whether inflation will continue. Increases in inflation raise the Evergy Companies' costs for labor, materials and services. A failure to recover increased capital costs could result in under-recovery of costs.

Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors could lead to lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures.  In response to competitive, economic, political, legislative, public perception and regulatory pressures, Evergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period for the benefit of customers. In addition, Transource, which Evergy owns a 13.5% interest, is focused on the development of competitive electric transmission projects across the United States and faces similar risks with respect to projects located in regulatory jurisdictions outside of Kansas and Missouri. Any of these results could have a material adverse effect on the results of operations, financial condition and cash flows of the Evergy Companies.

Legislative and regulatory requirements may increase costs and result in compliance penalties.

FERC, the North American Electric Reliability Corporation (NERC) and SPP have implemented and enforce an extensive set of transmission system reliability, cybersecurity and critical infrastructure protection standards that

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apply to public utilities.  The MPSC and KCC have the authority to implement utility operational standards and requirements, such as vegetation management standards, facilities inspection requirements and quality of service standards.  In addition, Evergy is also subject to health, safety and other requirements enacted by the Occupational Safety and Health Administration, the Department of Transportation, the Department of Labor and other federal and state agencies.  As discussed more fully below, the Evergy Companies are also subject to numerous environmental laws and regulations, as well as laws and regulations related to nuclear power generation. The costs of complying with existing, new or modified regulations, standards and other requirements could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  Furthermore, regulatory changes could result in operational changes that increase costs or adversely impact the Evergy Companies' prospects. In addition, failure to meet quality of service, reliability, cybersecurity, critical infrastructure protection, operational or other standards and requirements could expose the Evergy Companies to penalties, additional compliance costs or adverse rate consequences, any of which could have a material adverse impact on their results of operations, financial position and cash flows.

Environmental Risks:

Costs to comply with environmental laws and regulations, including those relating to air and water quality, waste management and hazardous substance disposal, protected natural resources and health and safety, are significant and may adversely impact operations and financial results.

The Evergy Companies are subject to extensive and evolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety. See Item 1. Business - Environmental Matters and Note 14 to the consolidated financial statements for additional information. In general, over time these laws and regulations have become and continue to become increasingly stringent and compliance with these laws and regulations require an increasing share of capital and operating resources, which may reduce the amount of resources available for other business objectives, including capital investments.

Compliance with these laws, regulations and requirements requires significant capital and operating resources. Regulators may also disagree with the Evergy Companies' interpretation or application of these laws, regulations and requirements. The failure to comply with these laws, regulations and requirements could result in substantial fines, injunctive relief and other sanctions. For example, Evergy Kansas Central recently decommissioned the Tecumseh Energy Center and removed all coal combustion residuals (CCRs) from a surface impoundment in a manner it believed complied with federal law, but the EPA has recently commenced an evaluation of whether Evergy Kansas Central should have taken additional or alternative actions, even though the facility is closed.

The EPA has begun issuing CCR Part A rule extension application determinations for companies that applied for approval to operate unlined or clay-lined impoundments past April 2021. The Evergy Companies did not apply for an extension, however, these proposed determinations include extensive CCR rule interpretations and compliance expectations that may impact all owners of CCR units. The new interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action could result in substantial costs or operational impacts.

In January 2022, the EPA announced changes following a tour by the EPA administrator conducted in the second half of 2021 to address issues in communities that are marginalized, underserved and overburdened by pollution. These changes will include additional unannounced inspections of suspected non-compliant facilities, deploying new assets to monitor air pollution and a general increase in overall monitoring and oversight. The EPA's announcement focused on industries in Louisiana, Mississippi and Texas but includes similar agency-wide action in parallel. The Evergy Companies have multiple power plants located in communities that would be considered a higher priority by the EPA based on existing demographics. These sites could be subject to additional monitoring and unannounced inspections in the future.

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Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits.  New facilities, or modifications of existing facilities, may require new environmental permits or amendments to existing permits.  Delays in the environmental permitting process, public opposition and challenges, denials of permit applications, limits or conditions imposed in permits and the associated uncertainty may materially adversely affect the cost and timing of projects, and thus materially adversely affect the results of operations, financial position and cash flows of the Evergy Companies. In addition, compliance with environmental laws, regulations and requirements could alter the way assets are managed, which in turn could result in retiring assets earlier than expected, recording asset retirement obligations (AROs) or having a regulator disallow recovery of costs that had been prudently incurred in connection with those assets. There is also a risk of lawsuits alleging violations of environmental laws, regulations or requirements, claiming creation of a public nuisance or other matters, and seeking injunctions or monetary damages or other relief.

Costs of compliance with environmental laws, regulations and requirements, or fines, penalties or negative lawsuit outcomes, if not recovered in rates from customers, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.  

Financial Risks:

Financial market disruptions or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results.

The Evergy Companies rely on funds from operations and access to the capital and credit markets to fund capital expenditures and for working capital and liquidity. Disruption in capital or credit markets, increases in interest rates, deterioration in the financial condition of the financial institutions on which the Evergy Companies rely, credit rating downgrades, a decrease in the market price of Evergy's common stock or a decrease or disappearance in the demand for debt securities issued by the Evergy Companies or subsidiaries could have material adverse effects on the Evergy Companies.  These effects could include, among others: reduced access to capital and increased cost of borrowed funds and collateral requirements; dilution resulting from equity issuances at reduced prices; increased nuclear decommissioning trust and pension and other post-retirement benefit plan funding requirements; reduced ability to pay dividends; rate case disallowance of costs of capital; reductions in or delays of capital expenditures; and limitations in the ability of Evergy to provide credit support for its subsidiaries. 

The Evergy Companies plan to make significant capital investments in renewable generation and to enhance the customer experience, improve reliability and resiliency and improve efficiency, which are expected to be funded with cash flows from operations and debt. If cash flows from operations are lower than expected or the costs of these capital investments are higher than expected, additional debt will be required to fund the investments, which, in turn, may create pressure on the Evergy Companies' credit ratings or result in a ratings downgrade and increase their cost of capital. In 2021, a credit ratings agency assigned the Evergy Companies a negative outlook, while affirming ratings, due to perceived risk related to increased capital expenditures and the ability to earn a return of and on those investments through upcoming rate cases. Further, Evergy Kansas Central and Evergy Metro have outstanding tax-exempt bonds that may be put back to the respective issuer at the option of the holders, which could adversely impact liquidity. In addition, market disruption and volatility could have an adverse impact on Evergy's lenders, suppliers and other counterparties or customers, causing them to fail to meet their obligations.

Evergy is a holding company and relies on the earnings of its subsidiaries to meet its financial obligations.

Evergy is a holding company with no significant operations of its own.  The primary source of funds for payment of dividends to its shareholders and its other financial obligations is dividends paid to it by its direct subsidiaries, particularly Evergy Kansas Central, Evergy Metro and Evergy Missouri West.  Evergy's subsidiaries are separate legal entities and have no obligation to provide Evergy with funds. The ability of Evergy's subsidiaries to pay dividends or make other distributions, and accordingly, Evergy's ability to pay dividends on its common stock and meet its financial obligations, principally depends on the earnings and cash flows, capital requirements and general financial position of its subsidiaries, as well as regulatory factors, financial covenants, general business conditions and other matters.

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In addition, the Evergy Companies are subject to certain corporate and regulatory restrictions and financial covenants that could affect their ability to pay dividends.  Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. Each of Evergy Metro and Evergy Missouri West has committed to Missouri regulators to not pay dividends to Evergy if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. Each of Evergy Kansas Central and Evergy Metro has committed to Kansas regulators to not pay dividends to Evergy if (i) the payment would result in an increase in the utility's debt level (excluding short-term debt and debt due within one year) above 60 percent of its total capitalization, absent approval from the KCC or (ii) if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. Under various debt agreements, the Evergy Companies are also required to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00, which could restrict the amount of dividends the Evergy Companies are permitted to pay. Evergy cannot guarantee dividends will be paid in the future or that, if paid, dividends will satisfy announced targets or investor expectations or be paid with the same frequency as in the past.

In addition, from time to time Evergy has in the past and may in the future guarantee debt obligations of its subsidiaries. Under the financing agreements to which Evergy is a party, a guarantee of debt may be considered indebtedness for purposes of complying with financial covenants that dictate the extent to which Evergy can borrow money, and any guarantee payments could adversely affect Evergy's liquidity and ability to service its own debt obligations.

Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity.

Evergy maintains defined benefit retirement and other post-retirement employee benefit plans for certain current and former employees. The costs of these plans depend on a number of factors, including the rates of return on plan assets, the level and nature of the provided benefits, discount rates, the interest rates used to measure required minimum funding levels, changes in benefit design, changes in laws or regulations and the amount of any required or voluntary contributions to the plans.  The Evergy Companies have substantial unfunded liabilities under these plans.  Also, if the rate of retirements exceeds planned levels, these plans experience adverse market returns on investments or interest rates fall, required or voluntary contributions to the plans could be material.  In addition, changes in accounting rules and assumptions related to future costs, returns on investments, interest rates and other actuarial assumptions, including projected retirements, could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.

The costs of providing health care benefits to employees and retirees have increased in recent years and may continue to rise in the future. Future legislative changes related to health care could also cause significant changes to benefit programs and costs. The increasing costs associated with health care plans could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.

The Evergy Companies are subject to commodity and other risks associated with energy markets.

The Evergy Companies are required to maintain generation capacity that satisfies regulatory mandates and are obligated to provide power when required by the SPP or pursuant to contractual obligations. Although the Evergy Companies generally have regulatory mechanisms that allow them to recover the cost of fuel and purchased power necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurred.

The Evergy Companies engage in the wholesale and retail sale of electricity and the wholesale purchase of electricity as part of their regulated electric operations in addition to limited energy marketing activities and the management of third-party generation facilities. These activities expose the Evergy Companies to risks associated with the price of electricity and other energy-related products, as well credit exposure to their counterparties. Exposure to these risks is affected by a number of factors, including the availability and cost of fuel and power that the Evergy Companies purchase on the wholesale markets to serve customer load or to satisfy their regulatory or contractual obligations, the ability or effectiveness of strategies utilized by the Evergy Companies to hedge these risks, the extent to which the Evergy Companies may be required to post collateral for the benefit of third parties and the risk that counterparties fail to fulfill their obligations to the Evergy Companies. Market volatility can

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increase or create unanticipated risks. Regional transmission organizations and independent system operators may also retroactively reprice transactions following execution.

Subject to certain regulatory constraints, the Evergy Companies use derivative instruments, such as transmission congestion rights (TCRs), swaps, options, futures and forwards, to manage commodity and financial risks. Losses could be recognized as a result of volatility in the market values of these contracts, if a counterparty fails to perform or if the underlying transactions, which the derivative instruments are intended to hedge, fail to materialize. The valuation of these financial instruments can involve management’s judgment or the use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts. The Evergy Companies cannot assure that their risk management practices will be effective or will mitigate all risks.

The results of operations, financial position and liquidity of the Evergy Companies could be materially adversely affected if the Evergy Companies fail to recover, or experience a delay in the recovery of, fuel and purchased power expenses; if the Evergy Companies fail to adequately hedge or mitigate commodity or energy market risks; if the Evergy Companies are required to provide collateral in amounts greater than planned; if energy marketing transactions are retroactively repriced; or if counterparties fail to fulfill obligations to the Evergy Companies.

Tax legislation and an inability to utilize tax credits could adversely impact results of operations, financial position and liquidity.

Tax laws and regulations can adversely affect, among other things, financial results, liquidity, credit ratings and the valuation of assets, such as deferred income tax assets. The Evergy Companies regularly assess their ability to utilize tax benefits, including those in the form of net operating loss (NOL), tax credit and other tax carryforwards, that are recorded as deferred income tax assets on its balance sheets to determine whether a valuation allowance is necessary. A reduction in, or disallowance of, these tax benefits could have an adverse impact on the financial results and liquidity of the Evergy Companies.

Additionally, changes in corporate tax rates or policy changes, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the results of operations, financial position and liquidity of the Evergy Companies. In addition, the Evergy Companies construct and operate renewable energy facilities that generate tax credits that reduce federal income tax obligations. The amount of tax credits is dependent on several factors, including the amount of electricity produced and the applicable tax credit rate. A variety of factors, including transmission constraints, the ability to timely complete construction of renewable energy facilities, adverse weather conditions and breakdown or failure of equipment, could significantly reduce these tax credits, which could have an adverse impact on the results of operations and financial position of the Evergy Companies.

The anticipated benefits of the Evergy Companies' strategy may not be realized.

The Evergy Companies' strategy includes significant planned reductions in operating and maintenance expense and significant planned increases in capital investments. The Evergy Companies' strategy also includes a different mix of capital investments than has been pursued in the past, including significant capital investments in renewable generation. The Evergy Companies' strategy also includes the planned retirement of coal-fired generation resources. If regulators determine that the retirement of coal generation facilities was not prudent, they could prohibit the Evergy Companies from recovering, or earning a return on, the investments in those facilities that were prudent when the investments were originally made. This concept is known as a "stranded asset," and generation retirements outside of those contemplated in the integrated resource plan increase the risk that regulators will disallow the recovery of otherwise prudent investments. In addition, the Evergy Companies may utilize legislative mechanisms known as securitization to facilitate the retirement of coal-fired generation, which will eliminate future returns on the investment that was originally made by the Evergy Companies in those coal-fired generating facilities and reduce the Evergy's Companies results of operations and financial position.

No assurance can be given that the Evergy Companies will be successful in implementing their strategy in a timely manner or at all, and a failure to do so could have a material adverse effect on the results of operations, financial

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position and cash flows of the Evergy Companies and have an adverse impact on the price of Evergy’s common stock.

The price of Evergy common stock may experience volatility.

The price of Evergy common stock may be volatile. Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; the ability of the Evergy Companies to implement their strategic plan; the ability of Evergy to deploy capital; actions by regulators; and statements in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations. Negative perceptions or publicity from increasing scrutiny of environmental, social and governance practices could also adversely impact Evergy's stock price. Also, individuals or entities, such as activist shareholders and special interest groups, may seek to influence the Evergy Companies' strategic plan or take other actions that could disrupt the Evergy Companies' business, financial results or operations and could adversely impact Evergy's stock price. In addition, the Evergy Companies operate almost exclusively in Kansas and Missouri and this concentration may increase exposure to risks arising from unique local or regional factors. Furthermore, general market conditions and U.S. economic factors and political events unrelated to the performance of Evergy (including the COVID-19 pandemic) may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Evergy common stock to predict the future price of Evergy's common stock.

Evergy has recorded goodwill that could become impaired and adversely affect financial results.

As required by generally accepted accounting principles (GAAP), Evergy recorded a significant amount of goodwill on its balance sheet in connection with completion of the merger that resulted in the formation of Evergy. Evergy assesses goodwill for impairment on an annual basis or whenever events or circumstances occur that would indicate a potential for impairment. If goodwill is deemed to be impaired, Evergy may be required to incur non-cash charges that could materially adversely affect its results of operations.

Customer and Weather-Related Risks:

Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows.

Change in customer behaviors in response to energy efficiency programs, changing conditions and preferences or changes in the adoption of technologies could affect the consumption of energy by customers. Federal and state programs exist to influence the way customers use energy and regulators have mandates to promote energy efficiency. Conservation programs and customers' level of participation in the programs could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.

Technological advances, energy efficiency and other energy conservation measures have reduced and will continue to reduce customer electricity consumption. The Evergy Companies generate electricity at central station power plants to achieve economies of scale and produce electricity at a competitive cost. Self-generation and distributed generation technologies, including microturbines, wind turbines, fuel cells and solar cells, as well as those related to the storage of energy produced by these systems, have become economically competitive with the manner and price at which the Evergy Companies sell electricity. There is also a perception that generating or storing electricity through these technologies is more environmentally friendly than generating electricity with fossil fuels. Increased adoption of these technologies could reduce electricity demand and the pool of customers from whom fixed costs are recovered, resulting in under recovery of the fixed costs of the Evergy Companies. Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers. If the Evergy Companies are unable to adjust to reduced electricity demand and increased self-generation and net energy metering, their financial condition and results of operations could be adversely affected.

Changes in customer electricity consumption due to sustained financial market disruptions, downturns or sluggishness in the economy or other factors may also adversely affect the results of operations, financial position and cash flows of the Evergy Companies.

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Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change.

Weather conditions directly influence the demand for and price of electricity. The Evergy Companies are significantly impacted by seasonality, and, due to energy demand created by air conditioning load, highest revenues are typically recorded in the third quarter. Unusually mild winter or summer weather can adversely affect sales.  In addition, severe weather and events, including tornados, snow, fire, rain, flooding, drought and ice storms, can be destructive and cause outages and property damage that can result in increased expenses, lower revenues and additional restoration costs.  Storm reserves established by the Evergy Companies may be insufficient and rates may not be adjusted in a timely manner, or at all, to recover these costs. Additionally, because many of the Evergy Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations.  High water conditions can also impair planned deliveries of fuel to generating stations or otherwise adversely impact the ability of the Evergy Companies to operate these stations. Climate change may produce more frequent or severe weather events, such as storms, droughts or floods and could also impact the economic health of the Evergy Companies' service territories. An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of Evergy's service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.

In addition, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency, could result in reduced sales and require significant costs to respond to such efforts. These efforts could also result in the early retirement of generation facilities, which could result in stranded costs if regulators disallow recovery of investments that were prudent when originally made and included in rates. The Evergy Companies have a goal to achieve net-zero CO2 emissions by 2045 with an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030. The trajectory and timing of reaching the goal could be impacted by many external factors, including enabling technology developments, the reliability of the power grid, availability of transmission capacity, and supportive energy policies and regulations, and other factors. Any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies and the market prices of Evergy's common stock.

Operational Risks:

Operational risks may adversely affect the Evergy Companies.

The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; employee error or contractor or subcontractor failure; problems that delay or increase the cost of returning facilities to service after outages; limitations that may be imposed by equipment conditions or environmental, safety or other regulatory requirements; fuel supply or fuel transportation reductions or interruptions; labor disputes; difficulties with the implementation or operation of information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism or acts of war, severe weather, pandemics or other similar occurrences. Many of the Evergy Companies' generation, transmission and distribution resources are aged, which increases the risk of unplanned outages, reduced generation output and higher maintenance expense.  Any equipment or system outage or constraint can, among other things, reduce sales, increase costs and affect the ability to meet regulatory service metrics, customer expectations and regulatory reliability and security requirements.

The Evergy Companies have general liability and property insurance to cover a portion of their facilities, but such policies do not cover transmission or distribution systems, are subject to certain limits and deductibles and do not include business interruption coverage.  Insurance coverage may not be available in the future at reasonable costs or on commercially reasonable terms, and the insurance proceeds received for any loss of, or any damage to, any facilities may not be sufficient to restore the loss or damage. Certain insurers are also choosing to limit their exposure to companies with coal-fired generation, which may result in increased premiums and reduced scope of coverage. These and other operating events may reduce revenues or increase costs, or both, and may materially affect the results of operations, financial position and cash flows of the Evergy Companies.

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Physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to facilities or information technology infrastructure could interfere with operations, expose the Evergy Companies or their customers or employees to a risk of loss, expose the Evergy Companies to legal or regulatory liability and cause reputational and other harm.

The Evergy Companies rely upon information technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, transmission and distribution of electricity, supply chain functions and the invoicing and collection of payments from customers. The Evergy Companies also use information technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial reporting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers. In the ordinary course of business, the Evergy Companies collect, store and transmit sensitive data including operating information, proprietary business information and personal information belonging to customers and employees.

The Evergy Companies' information technology networks and infrastructure, as well as the networks and infrastructure belonging to third-party service providers, are vulnerable to damage, disruptions or shutdowns due to attacks or breaches by hackers or other unauthorized third parties; error or malfeasance by employees, contractors or service providers; unintended consequences related to software or hardware upgrades, additions or replacements; malicious software code; vulnerabilities in third-party software code; telecommunication failures; the lack of availability of qualified employees and contractors; natural disasters or other catastrophic events; or criminal activity, terrorist attacks or acts of war. Driven in part by the COVID-19 pandemic, the Evergy Companies have increased the use of technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have indicated an increase in cyberattacks in general since the start of the pandemic due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which people interact with their information technology infrastructure.

The occurrence of any of these events could, among other things, impact the reliability or safety of the Evergy Companies' generation, transmission and distribution systems and information systems; result in the erasure of data or render the Evergy Companies' equipment, or the equipment of third-party service providers, unusable; impact the Evergy Companies' ability to conduct business in the ordinary course; reduce sales; expose the Evergy Companies and their customers, employees and vendors to a risk of loss or misuse of information; result in legal claims or proceedings, liability or regulatory penalties; damage the Evergy Companies' reputation; or otherwise harm the Evergy Companies' results of operations, financial position and cash flows. The Evergy Companies can provide no assurance that they will be able to identify and remediate all security or system vulnerabilities or that unauthorized access or error will be identified and remediated.

The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning cybersecurity and safeguarding their customer and business information. For example, NERC has issued comprehensive regulations and standards surrounding the security of the bulk power system, including both physical and cybersecurity, and continually evaluates the necessity for updates and new requirements with which the Evergy Companies must comply. The Evergy Companies are subject to recurring, independent, third-party audits with respect to adherence to these regulations and standards. The NRC also has issued regulations and standards related to the protection of critical digital assets at nuclear power plants. Compliance with NERC and NRC rules and standards, and rules and standards promulgated by other regulatory agencies from time to time or future legislation, will increase the Evergy Companies' compliance costs and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties. Furthermore, the non-compliance by other utilities subject to similar regulations or the occurrence of a serious security event at other utilities could result in increased regulation or oversight, both of which could increase the Evergy Companies' costs and adversely impact their financial results.

Additionally, the Evergy Companies cannot predict the impact that any future information technology or malicious attack may have on the energy industry in general. The electric utility industry, both within the United States and internationally, has experienced physical and cybersecurity attacks on energy infrastructure such as power plants, substations and related assets in the past, and there will likely be more attacks in the future. Geopolitical matters,

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including terrorist attacks and acts of war, may increase the likelihood of such attacks. The Evergy Companies have been subject to attempted cyber attacks from time to time, and will likely continue to be subject to such attempted attacks, but these prior attacks have not had a material impact on their operations. However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future. The Evergy Companies' facilities and systems could be direct targets or indirect casualties of such attacks. The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution, and information systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage. Furthermore, although the Evergy Companies maintain information security risk insurance coverage, such insurance may not be adequate to cover any associated losses. Any of the foregoing could have a material adverse impact on the Evergy Companies' results of operations, financial position and cash flows.

The cost and schedule of capital projects may materially change and expected performance may not be achieved.

The Evergy Companies' business is capital intensive and includes significant construction projects.  The risks of any capital project include: actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; increased inflation may render previously estimated costs to be inaccurate; risks associated with the capital and credit markets to fund projects; delays in receiving, or failure to receive, necessary permits, approvals and other regulatory authorizations; unforeseen engineering problems or changes in project design or scope; the failure of suppliers and contractors to perform as required under their contracts; inadequate availability or increased cost of labor or materials, including commodities such as steel, copper and aluminum that may be subject to uncertain or increased tariffs; inclement weather; new or changed laws, regulations and requirements, including environmental and health and safety laws, regulations and requirements; and other events beyond the Evergy Companies' control may occur that may materially affect the schedule, cost and performance of these projects.

The Evergy Companies' strategy includes a significant amount of planned capital investments. The Evergy Companies' ability to implement these investments depend, in part, on the availability of adequate internal and external resources, such as employees and qualified contractors and the availability of materials. In this regard, the global COVID-19 pandemic has caused and continues to cause disruptions to the global supply chain and the availability of qualified labor, which, in turn, has increased inflationary pressures.

These and other risks could cause the Evergy Companies to defer or limit capital expenditures, materially increase the costs of capital projects, delay the in-service dates of projects, adversely affect the performance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed.  These risks may significantly affect the Evergy Companies' results of operations, financial position and cash flows.

Failure to attract and retain an appropriately qualified workforce or to maintain satisfactory collective bargaining agreements could negatively impact the Evergy Companies' business and operations and adversely impact the Evergy Companies' results of operations, financial position and cash flows.

The Evergy Companies' workforce includes professional, managerial and technical employees. Failure to attract and retain qualified talent, successfully transition retirements with adequate replacements, or source qualified contractors could impede the Evergy Companies' strategy and/or adversely impact the Evergy Companies' ability to execute on their strategy. For example, certain skills, such as those related to construction, maintenance and repair of transmission and distribution systems are in high demand and have a limited supply. Evergy competes for qualified employees with these skills on a national level.

In addition, COVID-19 vaccination and testing mandates could result in employee or contractor labor disruptions and complying with any mandates and managing any related labor disruptions could have a significant adverse impact on the Evergy Companies' results of operations, financial position and cash flows.

A significant portion of the Evergy Companies' workforce is represented by five local unions of the IBEW and one local union of the UGSOA. The Evergy Companies currently have three labor agreements that expire in 2024 and three labor agreements currently under negotiation that have expired and are operating under an extension. A

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failure to successfully negotiate these collective bargaining agreements could result in labor disruptions and have a significant adverse impact on the Evergy Companies' results of operations, financial position and cash flows.

The Evergy Companies' strategic plan includes enhanced technology and transmission and distribution investments and a reduction in reliance on coal-fired generation. The Evergy Companies will need to attract and retain personnel that are qualified to implement the Evergy Companies' strategy and may need to retrain or reskill certain employees to support the Evergy Companies' long-term objectives. A failure to attract and retain qualified employees, retrain or reskill existing employees and maintain satisfactory collective bargaining agreements could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.

The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results.

Evergy indirectly owns 94% of Wolf Creek, with Evergy Kansas South and Evergy Metro each owning 47% of the nuclear plant.  The NRC has broad authority under federal law to impose licensing and safety-related requirements for the operation of nuclear generation facilities, including Wolf Creek.  In the event of non-compliance, the NRC has the authority to impose fines, shut down the facilities, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. Additionally, the non-compliance of other nuclear facility operators with applicable regulations or the occurrence of a serious nuclear incident anywhere in the world could result in increased regulation of the nuclear industry. Such events could increase Wolf Creek's costs and impact the financial results of the Evergy Companies or result in a shutdown of Wolf Creek.

An extended outage of Wolf Creek, whether resulting from NRC action, an incident at the plant or otherwise, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies in the event replacement power and other costs are not recovered through rates or insurance.  If a long-term outage occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base.  Wolf Creek commenced operations in 1985 and the age of Wolf Creek increases the risk of unplanned outages and results in higher maintenance costs.

On an annual basis, Evergy Kansas South and Evergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets. If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, Evergy Kansas South and Evergy Metro could be responsible for the balance of funds required and may not be allowed to recover the balance through rates.

The Evergy Companies are also exposed to other risks associated with the ownership and operation of a nuclear generating unit, including, but not limited to, (i) potential liability associated with the potential harmful effects on the environment and human health resulting from the operation of a nuclear generating unit, (ii) the storage, handling, disposal and potential release (by accident, through third-party actions or otherwise) of radioactive materials and (iii) uncertainties with respect to contingencies and assessments if insurance coverage is inadequate.  Under the structure for insurance among owners of nuclear generating units, Evergy Kansas South and Evergy Metro are also liable for potential retrospective premium assessments (subject to a cap) per incident at any commercial reactor in the country and losses in excess of insurance coverage.

In addition, Wolf Creek is reliant on a sole supplier for fuel and related services. The supplier has in the past been the subject of Chapter 11 reorganization proceedings, and an extended outage of Wolf Creek could occur if the supplier is not able to perform under its contracts with Wolf Creek. Switching to another supplier could take an extended amount of time and would require NRC approval. An extended outage at Wolf Creek could affect the amount of Wolf Creek investment included in customer rates and could have a material impact on the Evergy Companies' financial results.

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The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP regional transmission organization, and each has transferred operational authority (but not ownership) of their transmission facilities to the SPP. The SPP's Integrated Marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time. The SPP's rules are primarily designed to provide for maximum cost-effectiveness, but in certain respects the rules also provide preferential treatment for certain resources based on public policy initiatives, such as increasing the deployment of renewable generation. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating resources are not dispatched, each could experience decreased levels of wholesale electricity sales.

The Evergy Companies' strategic plan includes adding a significant amount of renewable generation. Transmission constraints and delays in the transmission planning and construction processes could impair the ability of the Evergy Companies to sell and transmit electricity generated by these renewable generation facilities, which could have an adverse impact on the results of operations and financial position of the Evergy Companies.

In addition, the rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the costs and revenues of the Evergy Companies.

Litigation Risks:

The outcome of legal proceedings cannot be predicted.  An adverse finding could have a material adverse effect on the Evergy Companies' results of operations, financial position and cash flows.

The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  The outcome of these matters cannot be determined, nor, in many cases, can the liability that could potentially result from each case be reasonably estimated.  The liability that the Evergy Companies may incur with respect to any of these cases may be in excess of amounts currently accrued and insured against with respect to such matters and could adversely impact the financial results for the Evergy Companies.

COVID-19 Risks:

The spread of COVID-19 and resulting impact on business and economic conditions could continue to negatively affect the Evergy Companies' business and operations.

The COVID-19 pandemic has had, and may continue to have, a significant impact on the way that the Evergy Companies conduct their operations and could adversely impact their results of operations, financial condition and cash flows. Further, the spread of COVID-19 has resulted in efforts to contain the virus, such as quarantines, restrictions on travel, closures and reduced operations of businesses, governmental agencies and other institutions. The pandemic, along with the efforts to contain the virus, has caused and could continue to cause an economic slowdown or recession, result in significant disruptions or reductions in various public, commercial or industrial activities, cause employee absences and contractor or third party service provider disruptions, which could interfere with the Evergy Companies' operations or the operations of their customers.

The COVID-19 pandemic has altered electricity usage patterns, including an overall reduction in demand and shifting usage away from customers with relatively higher load requirements, such as industrial and commercial customers, toward customers with relatively lower load requirements, such as residential customers. These changes in electricity usage patterns and the extent to which some of these shifts could become long-term or permanent could result in a significant decrease in the Evergy Companies' sales of electricity.

The Evergy Companies have also incurred, and will continue to incur, expenses related to monitoring the COVID-19 pandemic and modifying operations in response to the pandemic. In July 2020, the KCC authorized Evergy Kansas Central and Evergy Metro to record to a regulatory asset all net incremental costs incurred with respect to their Kansas operations associated with the COVID-19 pandemic for consideration in their next Kansas rate cases, which are expected to be completed no later than the end of 2023. Additionally, the KCC order stated

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that the KCC will also consider granting the recovery of Evergy Kansas Central's and Evergy Metro's lost revenues associated with the COVID-19 pandemic as part of their next Kansas rate cases. In January 2021, the MPSC authorized Evergy Metro and Evergy Missouri West to defer to a regulatory asset certain net incremental costs incurred between March 1, 2020 and March 31, 2021, associated with the COVID-19 pandemic for consideration in their next rate cases. Evergy Metro and Evergy Missouri West can petition the MPSC to extend the period subject to the Accounting Authority Order (AAO). Notwithstanding the foregoing, regulators might not allow for recovery of these amounts in a timely manner, or at all. In addition, Evergy Metro and Evergy Missouri West utilize PISA in Missouri, which requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both.

The Evergy Companies have also temporarily implemented policies, and in the future may implement additional policies, that are intended to ease the financial burden of the pandemic on customers, such as temporarily extending payment options and offering incentives for customer payments on overdue balances as well as the elimination of late payment fees and disconnections for non-payment. There is also the possibility that legislation or regulations could be enacted at the federal or state level that would further restrict the Evergy Companies' ability to discontinue service to customers in the event of non-payment or to collect amounts owed from customers for service provided. These measures could result in an overall increase in customer non-payment or delay in the timely receipt of customer payments, which could result in a significant increase in the Evergy Companies' credit loss expense or significant decrease in operating cash flows.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell retail electric accounts receivable to independent outside investors as a source of liquidity. These arrangements include covenants that limit the extent to which accounts receivable can be delinquent or unpaid. A decrease in the amount of, or a delay in receiving, customer collections due to the COVID-19 pandemic or otherwise could, absent a waiver or amendment, result in a breach of these accounts receivable financing arrangements and require the Evergy Companies to repay any outstanding loans. To the extent that the Evergy Companies experience lower electric sales, they may not have sufficient eligible receivables to maximize their borrowing capacity under their receivables sales facilities or could be required to repay additional portions of their borrowings under the facilities.

The Evergy Companies are planning to make significant capital expenditures and they regularly conduct maintenance on their facilities. The pandemic could disrupt the supply chains that provide services and equipment to the Evergy Companies as part of their capital expenditures or maintenance efforts. If the Evergy Companies' supply chains are disrupted, the Evergy Companies may be unable to perform necessary maintenance, which could result in increased costs as the Evergy Companies implement contingency plans to allow them to continue to operate. Supply chain interruptions may also exacerbate inflationary pressures, increase the cost of maintenance and capital expenditures or result in the delay or cancellation of planned projects, any of which could have a material adverse impact on the Evergy Companies' results of operations.

The Evergy Companies also have a significant amount of NOLs, tax credits and other tax carryforwards that are recorded as deferred income tax assets on their balance sheets. These tax benefits have various expiration dates and other limitations on the extent to which the benefits can be realized. The Evergy Companies regularly assess their future ability to utilize tax benefits to determine whether a valuation allowance is necessary. A significant reduction in the Evergy Companies' taxable income due to the impacts of the COVID-19 pandemic or otherwise could require the Evergy Companies to record a valuation allowance against a portion of those tax assets, which in turn reduces earnings, and the Evergy Companies may in general not be able to utilize these tax benefits.

In addition, the COVID-19 pandemic has changed the way the Evergy Companies operate and has increased the use of technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have also indicated an increase in cyberattacks in general since the start of the pandemic due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which employees and third parties interact with the Evergy Companies' information technology infrastructure. A successful attack against the Evergy Companies or cyberattacks to interconnected utilities, municipalities, others or widespread attacks to the utility industry could result in disruption to the Evergy

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Companies' generation, transmission and distribution and information systems or to the electrical grid in general, reduce sales and could increase the cost of insurance coverage or result in a decline in the U.S. economy. Furthermore, insurance may not be adequate to cover any associated losses.

Any of these circumstances, or other impacts of the COVID-19 pandemic, could adversely affect customer demand or revenues, impact the ability of the Evergy Companies' suppliers, vendors or contractors to perform, or cause other unpredictable events, which could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

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ITEM 2. PROPERTIES

Generation Resources

					Unit Capability (MW) By Owner(a)
Station	Unit No.	Location	Year Completed	Fuel	Evergy Kansas Central	Evergy Metro	Evergy Missouri West	Total Company Generation	Renewable Purchased Power		Total Generation and Renewable Purchased Power
Renewable Generation:
Central Plains		Kansas	2009	Wind	99	—	—	99	—		99
Flat Ridge		Kansas	2009	Wind	50	—	—	50	44	(b)	94
Flat Ridge 3		Kansas	2021	Wind	—	—	—	—	128	(b)	128
Western Plains		Kansas	2017	Wind	281	—	—	281	—		281
Meridian Way		Kansas	2008	Wind	—	—	—	—	96	(b)	96
Ironwood		Kansas	2012	Wind	—	—	—	—	168	(b)	168
Post Rock		Kansas	2012	Wind	—	—	—	—	201	(b)	201
Cedar Bluff		Kansas	2015	Wind	—	—	—	—	199	(b)	199
Kay Wind		Oklahoma	2015	Wind	—	—	—	—	200	(b)	200
Soldier Creek		Kansas	2020	Wind	—	—	—	—	300	(b)	300
Ninnescah		Kansas	2016	Wind	—	—	—	—	208	(b)	208
Kingman 1		Kansas	2016	Wind	—	—	—	—	37	(b)	37
Kingman 2		Kansas	2016	Wind	—	—	—	—	103	(b)	103
Rolling Meadows		Kansas	2010	Landfill Gas	—	—	—	—	6	(b)	6
Hutch Solar		Kansas	2017	Solar	—	—	—	—	1	(b)	1
Ponderosa		Oklahoma	2020	Wind	—	—	—	—	178	(c)	178
Cimarron II		Kansas	2012	Wind	—	—	—	—	131	(d)	131
Cimarron Bend III		Kansas	2020	Wind	—	—	—	—	150	(e)	150
Spearville 1		Kansas	2006	Wind	—	101	—	101	—		101
Spearville 2		Kansas	2010	Wind	—	48	—	48	—		48
Spearville 3		Kansas	2012	Wind	—	—	—	—	101	(d)	101
Gray County		Kansas	2001	Wind	—	—	—	—	110	(f)	110
Ensign		Kansas	2012	Wind	—	—	—	—	99	(f)	99
Waverly		Kansas	2016	Wind	—	—	—	—	200	(d)	200
Slate Creek		Kansas	2015	Wind	—	—	—	—	150	(d)	150
Rock Creek		Missouri	2017	Wind	—	—	—	—	300	(g)	300
Osborn		Missouri	2016	Wind	—	—	—	—	201	(g)	201
Pratt		Kansas	2018	Wind	—	—	—	—	243	(g)	243
Greenwood Solar		Missouri	2016	Solar	—	—	3	3	—		3
Prairie Queen		Kansas	2019	Wind	—	—	—	—	200	(g)	200
CNPPID (NE) - Hydro		Nebraska	1941	Hydro	—	—	—	—	66	(d)	66
St Joseph Landfill		Missouri	2012	Landfill Gas	—	—	2	2	—		2
Total Renewable Generation:					430	149	5	584	3,820		4,404

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						Unit Capability (MW) By Owner(a)
Station	Unit No.		Location	Year Completed	Fuel	Evergy Kansas Central	Evergy Metro	Evergy Missouri West	Total Company Generation	Renewable Purchased Power	Total Generation and Renewable Purchased Power
Nuclear:
Wolf Creek	1	(h)	Kansas	1985	Uranium	554	554	—	1,108	—	1,108
Total Nuclear:						554	554	—	1,108	—	1,108
Coal:
Jeffrey Energy Center			Kansas
Steam Turbines	1-3	(h)		1978, 1980 &1983	Coal	2,016	—	175	2,191	—	2,191
Lawrence Energy Center			Kansas
Steam Turbines	4 & 5	(i)		1960, 1971	Coal	485	—	—	485	—	485
La Cygne			Kansas
Steam Turbines	1 & 2	(h)(j)		1973, 1977	Coal	713	713	—	1,426	—	1,426
Iatan			Missouri
Steam Turbines	1 & 2	(h)		1980, 2010	Coal	—	974	284	1,258	—	1,258
Hawthorn			Missouri
Steam Turbines	5	(k)		1969	Coal	—	553	—	553	—	553
Total Coal:						3,214	2,240	459	5,913	—	5,913
Gas and Oil:
Emporia Energy Center			Kansas
Combustion Turbines	1 - 7			2008 - 2009	Natural Gas	654	—	—	654	—	654
Gordon Evans Energy Center			Kansas
Combustion Turbines	1 - 3			2000 - 2001	Natural Gas	294	—	—	294	—	294
Hutchinson Energy Center			Kansas
Combustion Turbines	1 - 3			1974	Natural Gas	166	—	—	166	—	166
	4			1975	Oil	74	—	—	74	—	74
Spring Creek Energy Center			Oklahoma
Combustion Turbines	1 - 4			2001	Natural Gas	269	—	—	269	—	269
State Line			Missouri
Combined Cycle	2-1, 2-2 & 2-3	(h)		2001	Natural Gas	200	—	—	200	—	200
Hawthorn			Missouri
Combined Cycle	6/9			2000	Natural Gas	—	221	—	221	—	221
Combustion Turbines	7 & 8			2000	Natural Gas	—	154	—	154	—	154

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					Unit Capability (MW) By Owner(a)
Station	Unit No.	Location	Year Completed	Fuel	Evergy Kansas Central	Evergy Metro	Evergy Missouri West	Total Company Generation	Renewable Purchased Power	Total Generation and Renewable Purchased Power
Gas and Oil (continued):
West Gardner		Kansas
Combustion Turbines	1 - 4		2003	Natural Gas	—	309	—	309	—	309
Osawatomie		Kansas
Combustion Turbines	1		2003	Natural Gas	—	75	—	75	—	75
Ralph Green		Missouri
Combustion Turbines	3		1981	Natural Gas	—	—	69	69	—	69
Nevada		Missouri
Combustion Turbines	1		1974	Oil	—	—	16	16	—	16
Lake Road		Missouri
Combustion Turbines	1 - 3		1951, 1958 & 1962	Natural Gas	—	—	49	49	—	49
	5 - 7		1974, 1989 & 1990	Oil	—	—	89	89	—	89
Steam Turbines	4		1967	Natural Gas	—	—	95	95	—	95
Northeast		Missouri
Combustion Turbines	11 - 18		1972 - 1977	Oil	—	380	—	380	—	380
South Harper		Missouri
Combustion Turbines	1 - 3		2005	Natural Gas	—	—	311	311	—	311
Greenwood Energy Center		Missouri
Combustion Turbines	1 - 4		1975 - 1979	Natural Gas	—	—	251	251	—	251
Crossroads Energy Center		Mississippi
Combustion Turbines	1 - 4		2002	Natural Gas	—	—	295	295	—	295
Total Gas and Oil					1,657	1,139	1,175	3,971	—	3,971
Total					5,855	4,082	1,639	11,576	3,820	15,396

(a) Capability (except for wind generating facilities) represents estimated 2022 net generating capacity. Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,788 MW of accredited generating capacity pursuant to SPP reliability standards.

(b) Evergy Kansas Central renewable power purchase agreement.

(c) Evergy Kansas Central and Evergy Metro renewable power purchase agreement.

(d) Evergy Metro renewable power purchase agreement.

(e) Evergy Kansas Central and Evergy Missouri West renewable power purchase agreement.

(f) Evergy Missouri West renewable power purchase agreement.

(g) Evergy Metro and Evergy Missouri West renewable power purchase agreement.

(h) Share of a jointly owned unit.

(i) See Note 4 to the consolidated financial statements for more information regarding the planned retirement of Lawrence Energy Center (LEC) Unit 4 which is expected to occur between December 2023 and the first half of 2024.

(j) In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2. Evergy and Evergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 18 to the consolidated financial statements for more information.

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(k) Although the plant was completed in 1969, a new boiler, air quality control equipment and an uprated turbine were placed in service at the Hawthorn Generating Station in 2001.

Transmission and Distribution Resources

Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers. Evergy has approximately 10,200 circuit miles of transmission lines, 44,900 circuit miles of overhead distribution lines and 15,500 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs. Management believes the current system has adequate capacity to serve customers.

General

Evergy's generating plants are located on property owned (or co-owned) by the Evergy Companies, except for certain facilities that are located on easements or are contractually controlled. Evergy's headquarters, service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy. Evergy's transmission and distribution systems are for the most part located above or underneath highways, streets, other public places or property owned by others. Evergy believes that it has satisfactory rights to use those places or properties in the form of permits, grants, easements, licenses or franchise rights; however, it has not necessarily undertaken efforts to examine the underlying title to the land upon which the rights rest.

Substantially all of the fixed property and franchises of the Evergy Companies, which consist principally of electric generating stations, electric transmission and distribution lines and systems, and buildings (subject to exceptions, reservations and releases), are subject to mortgage indentures pursuant to which bonds have been issued and are outstanding. See Note 12 to the consolidated financial statements for more information.

ITEM 3.  LEGAL PROCEEDINGS

The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses.  For information regarding material lawsuits and proceedings, see Notes 4 and 14 to the consolidated financial statements.  Such information is incorporated herein by reference.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

EVERGY, INC.

Evergy's common stock is listed on the New York Stock Exchange under the symbol "EVRG." At February 18, 2022, Evergy's common stock was held by 18,297 shareholders of record.

Performance Graph

The following graph compares the performance of Evergy's common stock during the period that began on June 5, 2018 (the first day that Evergy's common stock traded), and ended on December 31, 2021, to the performance of the Standard & Poor's 500 Index (S&P 500) and the Standard & Poor's Electric Utility Index (S&P 500 Electric Utilities). The graph assumes a $100 investment in Evergy's common stock and in each of the indices at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period.

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Purchases of Equity Securities

The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended December 31, 2021.

Issuer Purchases of Equity Securities
Month	Total Number of Shares (or Units) Purchased(a)	Average Price Paid per Share (or Unit)	Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
October 1 - 31	—	—	—	—
November 1 - 30	680	$64.92	—	—
December 1 - 31	8,495	$68.56	—	—
Total	9,175	$68.29	—	—

(a) Represents shares Evergy purchased for withholding taxes related to the vesting of restricted stock or restricted stock units.

Dividend Restrictions

For information regarding dividend restrictions, see Note 17 to the consolidated financial statements.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined MD&A should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.

The following MD&A generally discusses 2021 and 2020 items and year-to-year comparisons between 2021 and 2020. Discussions of 2019 items and year-to-year comparisons between 2020 and 2019 can be found in MD&A in Part II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31, 2020.

EVERGY, INC.

EXECUTIVE SUMMARY

Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.

•Evergy Kansas Central is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South.

•Evergy Metro is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.

•Evergy Missouri West is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.

•Evergy Transmission Company owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of

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competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the SPP. Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

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 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 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).

Strategy

Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders. The core tenets of Evergy's strategy are as follows:

•Affordability - working to keep rates affordable and improve regional rate competitiveness;

•Reliability - targeting top-tier performance in reliability, customer service and generation; and

•Sustainability - advancing ongoing CO2 emissions reductions and generation fleet transition.

Significant elements of Evergy's plan to achieve its strategic objectives include:

•targeting an annual reduction of approximately $345 million of operating and maintenance expense by 2025 from 2018 adjusted operating and maintenance expense (non-GAAP) (see "Non-GAAP Measures" within this Executive Summary for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure);

•targeting approximately $10.7 billion of expected base capital investments through 2026 including approximately $2.0 billion in renewable generation. See "Liquidity and Capital Resources; Capital Expenditures", for further information regarding Evergy's projected capital expenditures through 2026; and

•targeting a 70% reduction of CO2 emissions by 2030 (from 2005 levels) and net-zero by 2045 through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants. See "Transitioning Evergy's Generation Fleet" in Part I, Item 1., Business, for additional information.

See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A, Risk Factors, for additional information.

Regulatory Proceedings

In January 2022, Evergy Metro and Evergy Missouri West filed applications with the MPSC to request increases to their retail electric revenues of $43.9 million and $27.7 million, respectively, before rebasing fuel and purchased power expense, with a return on equity of 10%. The requests reflect increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Metro and Evergy Missouri West are also requesting the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of their requests with the MPSC.

See Note 4 to the consolidated financial statements for further information regarding the Missouri rate cases in addition to information on other regulatory proceedings.

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Evergy Equity Investment

From time to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of operations. In October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investment in the company that was acquired in the SPAC transaction, Evergy received shares of the resulting public company upon the closing of the transaction, which are subject to a restriction on sale for 150 days. Evergy recorded a $27.7 million unrealized gain in the fourth quarter of 2021 for the conversion of its shares into the newly formed public company and based on the closing share price as of December 31, 2021 adjusted to reflect the restriction on the sale of the shares. The fair value of Evergy's investment is largely dependent on the performance of the new public company's stock, which is subject to significant market volatility and also affected by the restriction on sale of the shares until March 2022, when the restriction expires. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility. See "Non-GAAP Measures" within this Executive Summary for additional information.

LEC Unit 4 Securitization

In April 2021, the state of Kansas passed the Utility Financing and Securitization Act (UFSA) which allows certain public utilities, including Evergy Kansas Central and Evergy Metro, to securitize utility assets in order to recover energy transition costs relating to the early retirement of certain generating assets. To recover the energy transition costs through securitization as allowed in the UFSA, a public utility must obtain a predetermination order from the KCC finding that the retirement of the subject generation facility is reasonable. Upon the receipt of a successful predetermination order, the public utility must then file an application with the KCC for a financing order to issue securitized bonds to recover the energy transition costs. The UFSA also allows the pursuit of securitization to help finance qualified extraordinary expenses, such as fuel costs incurred during extreme weather events.

In September 2021, Evergy Kansas Central filed a predetermination request with the KCC for the ratemaking principles and treatment related to its planned investment in approximately 190 MW of solar generation and the planned retirement of coal-fired LEC Unit 4 and related coal-handling facilities for LEC Units 4 and 5, both of which are expected to occur between December 2023 and the first half of 2024. In February 2022, Evergy Kansas Central withdrew its predetermination request with the KCC in order to finalize definitive documentation associated with the solar investment and to develop additional information to enable the KCC to evaluate its predetermination request. Evergy Kansas Central anticipates refiling its predetermination request, including this additional information, later in 2022.

If the KCC finds that Evergy Kansas Central's planned retirement of LEC Unit 4 and investment in 190 MW of solar generation is prudent as part of a predetermination request, Evergy Kansas Central then plans to file an application with the KCC for a financing order authorizing the issuance of securitized bonds to recover energy transition costs associated with the retirement of LEC Unit 4 and the related coal-handling facilities for LEC Units 4 and 5.

February 2021 Winter Weather Event

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event). The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace. As part of the February 2021 winter weather event, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $365.5 million. This $365.5 million of net fuel and purchased power costs was primarily driven by $296.4 million of costs at Evergy Missouri West and $133.9 million of costs at Evergy Kansas Central, partially offset by $64.8 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP. This review and any subsequent resettlement activity could

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result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.

As of December 31, 2021, the Evergy Companies have deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their fuel recovery mechanisms and an emergency AAO issued by the KCC in February 2021. Further, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC regarding the deferral and subsequent recovery or refund of the February 2021 winter weather event amounts. While the Evergy Companies expect to recover substantially all of any increased fuel and purchased power costs related to the February 2021 winter weather event from customers, the timing of the cost recovery could be delayed or spread over a longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.

The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not had a significant impact on the Evergy Companies' results of operations. These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income. As a result of the elevated market prices experienced in regional power markets across the central and southern United States driven by the February 2021 winter weather event discussed above, Evergy and Evergy Kansas Central recorded $94.5 million of energy marketing margins in 2021 related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT).

See Notes 1 and 4 to the consolidated financial statements for additional information regarding the February 2021 winter weather event and related AAOs.

Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement

See Note 17 to the consolidated financial statements for information regarding Evergy's securities purchase agreement with an affiliate of Bluescape to purchase Evergy's common stock and a warrant that was completed in April 2021.

Impact of COVID-19

See Part I, Item 1A, Risk Factors for information regarding the impact of COVID-19 on the Evergy Companies.

Earnings Overview

The following table summarizes Evergy's net income and diluted earnings per share (EPS).

	2021		Change		2020
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	879.7	$	261.4	$	618.3
Earnings per common share, diluted	3.83		1.11		2.72

Net income attributable to Evergy, Inc. increased in 2021, compared to 2020, primarily due to non-regulated energy marketing margins related to the February 2021 winter weather event, higher retail sales driven by favorable weather and demand, lower operating and maintenance expenses, higher equity allowance for funds used during construction (AFUDC), higher investment earnings and lower interest expense; partially offset by higher property taxes, higher depreciation expense and higher income tax expense.

Diluted EPS increased in 2021, compared to 2020, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.

For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A.

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Non-GAAP Measures

Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP)

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2021 were $812.6 million or $3.54 per share, respectively. For 2020, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $705.5 million or $3.10 per share, respectively. 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 income or costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event and gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility, as well as costs resulting from executive transition, severance, advisor expenses, COVID-19 vaccine incentives and the revaluation of deferred tax assets and liabilities from the Kansas corporate income tax rate change.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to enhance an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance.

Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.

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).

	Earnings (Loss)		Earnings (Loss) per Diluted Share		Earnings (Loss)		Earnings (Loss) per Diluted Share
	2021				2020
	(millions, except per share amounts)
Net income attributable to Evergy, Inc.	$	879.7	$	3.83	$	618.3	$	2.72
Non-GAAP reconciling items:
Non-regulated energy marketing margin related to February 2021    winter weather event, pre-tax(a)	(94.5)		(0.41)		—		—
Non-regulated energy marketing costs related to February 2021    winter weather event, pre-tax(b)	7.9		0.03		—		—
Executive transition costs, pre-tax(c)	10.8		0.05		—		—
Severance costs, pre-tax(d)	2.8		0.01		66.3		0.29
Advisor expenses, pre-tax(e)	11.6		0.05		32.3		0.14
COVID-19 vaccine incentive, pre-tax(f)	1.2		0.01		—		—
Restricted equity investment gains, pre-tax(g)	(27.7)		(0.12)		—		—
Income tax expense (benefit)(h)	20.8		0.09		(25.2)		(0.11)
Kansas corporate income tax change(i)	—		—		13.8		0.06
Adjusted earnings (non-GAAP)	$	812.6	$	3.54	$	705.5	$	3.10

(a)Reflects non-regulated energy marketing margins related to the February 2021 winter weather event and are included in operating revenues on the consolidated statements of comprehensive income.

(b)Reflects non-regulated energy marketing incentive compensation costs related to the February 2021 winter weather event and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(c)Reflects costs associated with executive transition including inducement bonuses, severance agreements and other transition expenses of which $10.5 million is included in operating and maintenance expense and $0.3 million is included in other expense in 2021 on the consolidated statements of comprehensive income.

(d)Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

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(e)Reflects advisor expenses incurred associated with strategic planning and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(f)Reflects incentive compensation costs incurred associated with employees becoming fully vaccinated against COVID-19 and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

(g)Reflects gains related to equity investments which are subject to a restriction on sale and are included in investment earnings on the consolidated statements of comprehensive income.

(h)Reflects an income tax effect calculated at a statutory rate of approximately 22% in 2021 and 26% in 2020, with the exception of certain non-deductible items.

(i)Reflects the revaluation of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's deferred income tax assets and liabilities from the Kansas corporate income tax rate change and are included in income tax expense on the consolidated statements of comprehensive income.

2018 Adjusted Operating and Maintenance Expense

The following table provides a reconciliation between 2018 operating and maintenance expense and 2018 pro forma operating and maintenance expense as determined in accordance with GAAP and 2018 adjusted operating and maintenance expense (non-GAAP). Evergy's 2018 adjusted operating and maintenance expense (non-GAAP) is used as the base for Evergy's targeted operating and maintenance expense reductions by 2025.

	(millions)
2018 Operating and maintenance expense	$	1,115.8
Pro forma adjustments(a):
Great Plains Energy operating and maintenance expense prior to the merger	317.9
Non-recurring merger costs and other	(101.3)
2018 Pro forma operating and maintenance expense	$	1,332.4
Non-GAAP reconciling items:
Voluntary severance costs(b)	(23.5)
Deferral of merger transition costs(c)	28.5
Inventory write-offs at retiring generating units(d)	(31.0)
2018 Adjusted operating and maintenance expense (non-GAAP)	$	1,306.4

(a)Reflects pro forma adjustments made in accordance with Article 11 of Regulation S-X and ASC 805 - Business Combinations. See Note 2 to the consolidated financial statements in the Evergy Companies' combined 2018 Annual Report on Form 10-K for further information regarding these adjustments.

(b)Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.

(c)Reflects the portion of the $47.8 million deferral of merger transition costs to a regulatory asset in June 2018 that related to costs incurred prior to 2018. The remaining merger transition costs included within the $47.8 million deferral were both incurred and deferred in 2018 and did not impact earnings. This item is included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.

(d)Reflects obsolete inventory write-offs for Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordon Evans Energy Center, Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station and are included in operating and maintenance expense on the 2018 consolidated statements of comprehensive income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.

Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in March 2021 and the unit returned to service in May 2021. Wolf Creek's next refueling outage is planned to begin in the third quarter of 2022.

ENVIRONMENTAL MATTERS

See Note 14 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 16 to the consolidated financial statements for information regarding related party transactions.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were uncertain at the time the estimate was made and changes in the estimate, or different estimates that could have been used, could have a material impact on Evergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board.

Pensions

Evergy incurs significant costs in providing non-contributory defined pension benefits. The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience.

Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments. In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the discount rates used in determining the projected benefit obligation and pension costs.

The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan. The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation. These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 9 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.

The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only.

				Impact on			Impact on
				Projected			2022
	Change in			Benefit			Pension
Actuarial assumption	Assumption			Obligation			Expense
				(millions)
Discount rate	0.5	%	increase		$	(193.6)		$	(18.5)
Rate of return on plan assets	0.5	%	increase		—			(7.9)
Rate of compensation	0.5	%	increase		50.7			9.4
Discount rate	0.5	%	decrease		219.6			20.7
Rate of return on plan assets	0.5	%	decrease		—			7.9
Rate of compensation	0.5	%	decrease		(47.3)			(8.8)

Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC. The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate.

In 2021, Evergy's pension expense was $153.7 million under GAAP and $171.0 million for ratemaking. The impact on 2022 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense is deferred to a regulatory asset or

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liability for future ratemaking treatment. See Note 9 to the consolidated financial statements for additional information regarding the accounting for pensions.

Market conditions and interest rates significantly affect the future assets and liabilities of the plan. It is difficult to predict future pension costs, changes in pension liability and cash funding requirements due to the inherent uncertainty of market conditions.

Revenue Recognition

Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. Evergy's estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. Evergy's unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 to the consolidated financial statements for the balance of unbilled receivables for Evergy as of December 31, 2021 and 2020.

Regulatory Assets and Liabilities

Evergy has recorded assets and liabilities on its consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded under GAAP. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.

Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to Evergy; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. Evergy's continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to all or a portion of Evergy's operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. See Note 4 to the consolidated financial statements for additional information.

Impairments of Assets and Goodwill

Long-lived assets are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable as prescribed under GAAP.

Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2021. The fair value of the reporting unit substantially exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.

The determination of fair value for the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques

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were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit, which involves a significant amount of management judgment.

The discounted cash flow analysis is most significantly impacted by two assumptions: estimated future cash flows and the discount rate applied to those cash flows. Management determines the appropriate discount rate to be based on the reporting unit's weighted average cost of capital (WACC). The WACC takes into account both the return on equity authorized by the KCC and MPSC and after-tax cost of debt. Estimated future cash flows are based on Evergy's internal business plan, which assumes the occurrence of certain events in the future, such as the outcome of future rate filings, future approved rates of return on equity, anticipated returns of and earnings on future capital investments, continued recovery of cost of service and the renewal of certain contracts. Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events. Should the actual outcome of some or all of these assumptions differ significantly from the current assumptions, revisions to current cash flow assumptions could cause the fair value of the Evergy reporting unit under the income approach to be significantly different in future periods and could result in a future impairment charge to goodwill.

The market approach analysis is most significantly impacted by management's selection of relevant peer companies as well as the determination of an appropriate control premium to be added to the calculated invested capital of the reporting unit, as control premiums associated with a controlling interest are not reflected in the quoted market price of a single share of stock. Management determines an appropriate control premium by using an average of control premiums for recent acquisitions in the industry. Changes in results of peer companies, selection of different peer companies and future acquisitions with significantly different control premiums could result in a significantly different fair value of the Evergy reporting unit.

Income Taxes

Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for net operating losses, capital losses and tax credit carryforwards. Evergy is required to estimate the amount of taxes payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns. Actual results could differ from these estimates for a variety of reasons including changes in income tax laws, enacted tax rates and results of audits by taxing authorities. This process also requires management to make assessments regarding the timing and probability of the ultimate tax impact from which actual results may differ. Evergy records valuation allowances on deferred tax assets if it is determined that it is more likely than not that the asset will not be realized. See Note 19 to the consolidated financial statements for additional information.

Asset Retirement Obligations

Evergy has recognized legal obligations associated with the disposal of long-lived assets that result from the acquisition, construction, development or normal operation of such assets. Concurrent with the recognition of the liability, the estimated cost of the ARO incurred at the time the related long-lived assets were either acquired, placed in service or when regulations establishing the obligation became effective is also recorded to property, plant and equipment, net on the consolidated balance sheets. The recording of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through the establishment of a regulatory asset or an offset to a regulatory liability.

Evergy initially recorded AROs at fair value for the estimated cost to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items. ARO refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence. The results of these assumptions are discounted using credit-adjusted risk-free rates (CARFR). The CARFR is determined as the current U.S. Treasury bonds rates

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corresponding to the period of expected settlement activities and is adjusted for the associated bond rates Evergy would be charged to borrow for the specific time period. Any change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets.

As of December 31, 2021 and 2020, Evergy had recorded AROs of $960.1 million and $941.9 million, respectively. See Note 6 to the consolidated financial statements for more information regarding Evergy's AROs.

EVERGY RESULTS OF OPERATIONS 

Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, customer behavior and demand, the economy and competitive forces.

Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators.

Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather.

The Evergy Companies use coal, uranium and gas for the generation of electricity for their customers and also purchase power through renewable power purchase agreements or on the open market. The prices for fuel used in generation or the market price of power purchases can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.

Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.

Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Through MEEIA, Evergy Metro and Evergy Missouri West offer energy efficiency and demand side management programs to their Missouri retail customers and recover program costs, throughput disincentive, and as applicable, certain earnings opportunities in retail rates through a rider mechanism.

The Evergy Companies' taxes other than income taxes, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates. Evergy Kansas Central and Evergy Metro's Kansas jurisdiction have property tax surcharges that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in property tax costs from the amounts set in base rates without a general rate case proceeding.

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The following table summarizes Evergy's comparative results of operations.

	2021		Change		2020
	(millions)
Operating revenues	$	5,586.7	$	673.3	$	4,913.4
Fuel and purchased power	1,557.0		458.0		1,099.0
SPP network transmission costs	290.4		27.2		263.2
Operating and maintenance	1,107.5		(55.5)		1,163.0
Depreciation and amortization	896.4		16.3		880.1
Taxes other than income tax	380.5		16.3		364.2
Income from operations	1,354.9		211.0		1,143.9
Other income (expense), net	18.8		54.9		(36.1)
Interest expense	372.6		(11.3)		383.9
Income tax expense	117.4		15.2		102.2
Equity in earnings of equity method investees, net of income taxes	8.2		(0.1)		8.3
Net income	891.9		261.9		630.0
Less: Net income attributable to noncontrolling interests	12.2		0.5		11.7
Net income attributable to Evergy, Inc.	$	879.7	$	261.4	$	618.3

Evergy Utility Gross Margin and MWh Sales

Utility gross margin is a financial measure that is not calculated in accordance with GAAP.  Utility gross margin, as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms.  As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO.  As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. See Note 2 to the consolidated financial statements for additional information regarding the manner in which the Evergy Companies' reflect SPP revenues and expenses.

Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin excludes the revenue effect of fluctuations in these expenses.  Utility gross margin is used internally to measure performance against budget and in reports for management and the Evergy Board.  Utility gross margin should be viewed as a supplement to, and not a substitute for, income from operations, which is the most directly comparable financial measure prepared in accordance with GAAP. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies.

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The following table summarizes Evergy's utility gross margin and MWhs sold.

	Revenues and Expenses						MWhs Sold
Utility Gross Margin	2021		Change		2020		2021	Change	2020
Retail revenues	(millions)						(thousands)
Residential	$	1,918.3	$	9.1	$	1,909.2	15,715	232	15,483
Commercial	1,681.3		39.6		1,641.7		17,659	664	16,995
Industrial	597.0		8.3		588.7		8,608	365	8,243
Other retail revenues	33.1		(5.4)		38.5		131	(1)	132
Total electric retail	4,229.7		51.6		4,178.1		42,113	1,260	40,853
Wholesale revenues	717.2		453.2		264.0		15,916	1,056	14,860
Transmission revenues	356.8		38.3		318.5		N/A	N/A	N/A
Other revenues	283.0		130.2		152.8		N/A	N/A	N/A
Operating revenues	5,586.7		673.3		4,913.4		58,029	2,316	55,713
Fuel and purchased power	(1,557.0)		(458.0)		(1,099.0)
SPP network transmission costs	(290.4)		(27.2)		(263.2)
Utility gross margin (a)	3,739.3		188.1		3,551.2
Operating and maintenance	(1,107.5)		55.5		(1,163.0)
Depreciation and amortization	(896.4)		(16.3)		(880.1)
Taxes other than income tax	(380.5)		(16.3)		(364.2)
Income from operations	$	1,354.9	$	211.0	$	1,143.9

(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin above.

Evergy's utility gross margin increased $188.1 million in 2021, compared to 2020, driven by:

•$94.5 million of non-regulated energy marketing margins recognized at Evergy Kansas Central related to the February 2021 winter weather event;

•an $84.1 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased 13%, partially offset by a 5% decrease in heating degree days) and an increase in weather-normalized commercial and industrial demand partially offset by a decrease in weather-normalized residential demand;

•a $38.3 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC transmission formula rate (TFR) effective in January 2021; and

•a $1.4 million net increase due to other impacts from the February 2021 winter weather event driven by:

◦a $33.8 million increase at Evergy Kansas Central driven by higher utility gross margin at its non-regulated 8% ownership share of Jeffrey Energy Center (JEC) due to higher wholesale sales prices and MWhs sold in February 2021; partially offset by

◦a $21.0 million decrease at Evergy Missouri West driven by $14.8 million of increased fuel and purchased power costs in February 2021 that are not currently recoverable from customers through its fuel recovery mechanism and a $6.2 million decrease related to a special requirements contract with an industrial customer; and

◦an $11.4 million decrease at Evergy Metro primarily driven by jurisdictional allocation differences currently present between its fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; partially offset by

•a $30.2 million decrease in revenues at Evergy Kansas Central and Evergy Metro due to rate reductions beginning January 1, 2021, in Kansas to reflect their exemption from Kansas corporate income taxes.

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Operating and Maintenance

Evergy's operating and maintenance expense decreased $55.5 million in 2021, compared to 2020, primarily driven by:

•a $63.5 million decrease in voluntary severance expenses due to a $55.9 million decrease at Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to Evergy voluntary exit programs in 2020 and a $7.6 million decrease in voluntary severance expenses incurred at Evergy Kansas Central and Evergy Metro related to Wolf Creek voluntary exit programs in 2020;

•a $20.7 million decrease in advisor expenses incurred in 2021 associated with strategic planning; and

•an $8.8 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor and contractor costs primarily driven by a higher mix of transmission capital projects in 2021; partially offset by

•$10.5 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses;

•$7.9 million of costs at Evergy Kansas Central related to non-regulated energy marketing margins recognized during the February 2021 winter weather event;

•a $6.7 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $6.3 million increase at Evergy Kansas Central primarily driven by a major maintenance outage at JEC in 2021 and higher material and supplies costs; and

•a $2.7 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central and Evergy Metro in 2021 related to their ownership interests in Wolf Creek.

Depreciation and Amortization

Evergy's depreciation and amortization increased $16.3 million in 2021, compared to 2020, primarily driven by higher capital additions at Evergy Kansas Central in 2021.

Taxes Other Than Income Tax

Evergy's taxes other than income tax increased $16.3 million in 2021, compared to 2020, driven by an increase in property taxes in Missouri and Kansas primarily due to higher assessed property tax values.

Other Income (Expense), Net

Evergy's other expense, net in 2020 became other income, net, in 2021 as a result of a $54.9 million increase in net other income items, primarily driven by:

•$49.1 million of higher investment earnings primarily driven by a $27.7 million unrealized gain in the fourth quarter of 2021 due to the change in fair value related to Evergy's investment in an early-stage energy solutions company and $14.0 million in realized gains from the sale of various equity investments in 2021;

•$12.2 million of higher Evergy Kansas Central and Evergy Metro equity AFUDC primarily driven by higher construction work in progress balances at Evergy Kansas Central and Evergy Metro and lower short-term debt balances at Evergy Metro in 2021; and

•$6.1 million of other income recorded in 2021 related to contract termination fees; partially offset by

•$4.8 million of lower Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2021.

Interest Expense

Evergy's interest expense decreased $11.3 million in 2021, compared to 2020, primarily driven by:

•a $12.7 million decrease due to the redemption of Evergy's $350.0 million of 4.85% Senior Notes in April 2021;

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•a $10.2 million decrease in interest expense on short-term borrowings primarily due to lower weighted-average interest rates for the Evergy Companies in 2021; and

•a $2.2 million net decrease due to the redemption of Evergy Kansas Central's $250.0 million of 5.10% first mortgage bonds (FMBs) in May 2020, which decreased interest expense by $6.8 million, partially offset by a $4.6 million increase due to the issuance of Evergy Kansas Central's $500.0 million of 3.45% FMBs in April 2020; partially offset by

•a $10.3 million increase due to the issuance in a private placement of Evergy Missouri West's $500.0 million of Series A, B and C Senior Notes in April 2021; and

•a $3.6 million increase due to the issuance of Evergy Metro's $400.0 million of 2.25% Mortgage Bonds in May 2020.

Income Tax Expense

Evergy's income tax expense increased $15.2 million in 2021, compared to 2020, primarily driven by:

•a $72.5 million increase due to higher Evergy Kansas Central and Evergy Metro pre-tax income in 2021;

•a $6.6 million increase due to lower wind and other income tax credits in 2021, primarily driven by the expiration of production tax credits at Evergy Metro's Spearville 2 wind facility in the fourth quarter of 2020 and lower research and development tax credits in 2021;

•a $5.5 million increase due to lower expected COLI proceeds for 2021; and

•a $4.0 million increase due to higher non-deductible officer compensation in 2021; partially offset by

•a $43.9 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central and Evergy Metro, from Kansas corporate income tax beginning in January 2021;

•a $15.6 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes at Evergy Kansas Central; and

•a $13.8 million decrease related to the revaluation of deferred income tax assets and liabilities in 2020 due to the change in Kansas corporate income tax rate.

See Note 19 to the consolidated financial statements for more information regarding the change in the Kansas corporate income tax rate.

EVERGY SIGNIFICANT BALANCE SHEET CHANGES

(December 31, 2021 compared to December 31, 2020)

•Evergy's cash and cash equivalents decreased $118.7 million primarily due to the use of funds for capital expenditures at Evergy Kansas Central, Evergy Metro and Evergy Missouri West, the repayment of certain short-term borrowings and other general corporate purposes.

•Evergy's receivables, net decreased $52.3 million primarily driven by a $21.5 million decrease in retail electric accounts receivable driven by lower sales in December 2021 due to unfavorable weather and a $13.6 million increase in the allowance for credit losses primarily driven by higher credit loss expense recognized in 2021 largely due to the economic impact of the COVID-19 pandemic and a lower level of actual write-offs incurred primarily due to timing as a result of customer support measures taken by Evergy during 2021 including disconnection moratoriums and payment plans.

•Evergy's accounts receivable pledged as collateral decreased $41.0 million primarily driven by Evergy's decrease in retail electric accounts receivable balances in December 2021, resulting in a lower level of retail electric receivables available for sale through Evergy's receivable sales facilities.

•Evergy's fuel and supplies inventory increased $62.2 million primarily driven by a $46.3 million increase in materials and supply inventory primarily due to an increase in transmission and distribution capital projects related to grid resiliency and other infrastructure improvement in addition to maintaining higher overall levels of inventory to mitigate longer supply chain lead times.

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•Evergy's income taxes receivable decreased by $34.9 million primarily due to Evergy's receipt of a $46.0 million federal alternative minimum tax (AMT) tax credit refund in the fourth quarter of 2021.

•Evergy's regulatory assets - current increased $217.9 million primarily driven by a $161.1 million increase at Evergy Kansas Central due to a $119.6 million increase related to Evergy Kansas Central's fuel recovery mechanism as a result of net under-collections and a $45.6 million increase related to deferred fuel and purchased power costs expected to be recovered in the next 12 months related to the February 2021 winter weather event; and a $54.6 million increase at Evergy Missouri West related to its fuel recovery mechanism as a result of net-under-collections.

•Evergy's other assets - current increased $51.7 million primarily due to a $31.4 million investment in an early-stage energy solutions company. See "Evergy Equity Investment" in Note 1 to the consolidated financial statements for additional information.

•Evergy's nuclear decommissioning trust funds increased $116.6 million primarily driven by realized and unrealized gains on investments at Evergy Kansas Central's and Evergy Metro's nuclear decommissioning trusts.

•Evergy's collateralized note payable decreased $41.0 million primarily driven by Evergy's decrease in retail electric accounts receivable balances in December 2021, resulting in a lower level of retail electric receivables available for sale through Evergy's receivable sales facilities.

•Evergy's notes payable and commercial paper increased $844.3 million due to a $158.0 million increase at Evergy, Inc., a $356.0 million increase at Evergy Kansas Central and a $330.3 million increase at Evergy Missouri West primarily due to borrowings for capital expenditures, costs related to the February 2021 winter weather event and for general corporate purposes.

•Evergy's regulatory liabilities - current increased $44.6 million primarily due to $34.0 million of deferred wholesale revenues at Evergy Metro expected to be refunded to customers in the next 12 months related to the February 2021 winter weather event.

•Evergy's pension and post-retirement liability decreased $270.3 million primarily due to a decrease in benefit obligations driven by $284.0 million of pension settlements in 2021 as a result of accelerated pension distributions as a result of employee retirements and annuity purchases for certain plan participants.

LIQUIDITY AND CAPITAL RESOURCES 

Evergy relies primarily upon cash from operations, short-term borrowings, 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.

Capital Sources

Cash Flows from Operations

Evergy's cash flows from operations are driven by the regulated sale of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on weather and economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and storms. Evergy's cash flows from operations were $1,351.7 million, $1,753.8 million and $1,749.0 million in 2021, 2020 and 2019, respectively.

Short-Term Borrowings

As of December 31, 2021, Evergy had $1.3 billion of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $341.3 million for Evergy, Inc., $343.9 million for Evergy Kansas Central, $350.0 million for Evergy Metro and $304.7 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of

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commercial paper. See Note 11 to the consolidated financial statements for more information regarding the master credit facility.

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 believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

Long-Term Debt and Equity Issuances

From time to time, Evergy issues long-term debt and equity to repay short-term debt, refinance maturing long-term debt and finance growth. As of December 31, 2021 and 2020, Evergy’s capital structure, excluding short-term debt, was as follows:

	December 31
	2021	2020
Common equity	49%	47%
Long-term debt, including VIEs	51%	53%

Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2021, the Evergy Companies were in compliance with these covenants.

Significant Debt Issuances

See Note 12 to the consolidated financial statements for information regarding significant debt issuances.

Equity Issuance

See Note 17 to the consolidated financial statements for information regarding Evergy's securities purchase agreement with Bluescape to purchase Evergy's common stock in 2021.

Credit Ratings

The ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under the master credit facility. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.

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As of February 24, 2022, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.

	Moody's		S&P Global
	Investors Service(a)		Ratings(a)
Evergy
Outlook		Stable		Negative
Corporate Credit Rating		--		A-
Senior Unsecured Debt		Baa2		BBB+
Short-Term Rating		P-2		A-2
Evergy Kansas Central
Outlook		Stable		Negative
Corporate Credit Rating		Baa1		A-
Senior Secured Debt		A2		A
Commercial Paper		P-2		A-2
Evergy Kansas South
Outlook		Stable		Negative
Corporate Credit Rating		Baa1		A-
Senior Secured Debt		A2		A
Short-Term Rating		P-2		A-2
Evergy Metro
Outlook		Stable		Negative
Corporate Credit Rating		Baa1		A
Senior Secured Debt		A2		A+
Senior Unsecured Debt		--		A
Commercial Paper		P-2		A-1
Evergy Missouri West
Outlook		Stable		Negative
Corporate Credit Rating		Baa2		A-
Senior Unsecured Debt		Baa2		A-
Commercial Paper		P-2		--

(a)A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.

Shelf Registration Statements and Regulatory Authorizations

Evergy

In September 2021, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in September 2024.

Evergy Kansas Central

In September 2021, Evergy Kansas Central filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured debt securities and FMBs with the SEC, which expires in September 2024.

Evergy Metro

In September 2021, Evergy Metro filed an automatic shelf registration statement providing for the sale of unlimited amounts of unsecured notes and mortgage bonds with the SEC, which expires in September 2024.

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The following table summarizes the regulatory short-term and long-term debt financing authorizations for Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West and the remaining amount available under these authorizations as of December 31, 2021.

Type of Authorization	Commission	Expiration Date	Authorization Amount			Available Under Authorization
Evergy Kansas Central & Evergy Kansas South				(in millions)
Short-Term Debt	FERC	December 2022		$	1,250.0		$	844.0
Evergy Metro
Short-Term Debt	FERC	December 2022		$	1,250.0		$	1,250.0
Evergy Missouri West
Short-Term Debt	FERC	December 2022		$	750.0		$	199.7
Long-Term Debt	FERC	February 2023		$	1,000.0		$	500.0

In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South and Evergy Metro mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity. Evergy Kansas Central, Evergy Kansas South and Evergy Metro must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness.

Under the Evergy Kansas Central mortgage, the issuance of FMBs is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas Central’s unconsolidated net earnings available for interest, depreciation and property retirement (which, as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2021, $998.9 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

Under the Evergy Kansas South mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2021, approximately $2,828.6 million principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.

Under the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2021, approximately $5,075.8 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.

Cash and Cash Equivalents

At December 31, 2021, Evergy had approximately $26.2 million of cash and cash equivalents on hand.

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Capital Requirements

Capital Expenditures

Evergy requires significant capital investments and expects to need cash for its long-term strategy of transitioning its generation fleet to be more sustainable by reducing CO2 emissions as well as executing other utility construction programs designed to improve reliability and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. See "Executive Summary - Strategy", above for further information regarding Evergy's strategy. Evergy's capital expenditures were $1,972.5 million, $1,560.3 million and $1,210.1 million in 2021, 2020 and 2019, respectively.

Capital expenditures projected for the next five years, excluding AFUDC and including costs of removal, are detailed in the following table. This capital expenditure plan is subject to continual review and change. See Part I, Item 1A, Risk Factors for information regarding potential risks to Evergy's capital expenditure plan.

		2022		2023		2024		2025		2026
	(millions)
Generating facilities - new renewable generation		$	—	$	258.0	$	450.0	$	750.0	$	500.0
Generating facilities - other		331.0		337.0		223.0		250.0		216.0
Transmission facilities		626.0		600.0		591.0		592.0		679.0
Distribution facilities		655.0		652.0		549.0		595.0		632.0
General facilities		364.0		270.0		194.0		182.0		173.0
Total capital expenditures		$	1,976.0	$	2,117.0	$	2,007.0	$	2,369.0	$	2,200.0

Significant Contractual Obligations and Other Commitments

In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements.

The information in the following table is provided to summarize Evergy's significant cash obligations and commercial commitments.

Payment due by period	2022		2023		2024		2025		2026		After 2026			Total
Long-term debt	(millions)
Principal	$	387.5	$	439.5	$	800.0	$	636.0	$	350.0		$	7,056.8	$	9,669.8
Interest	340.3		323.1		311.4		291.6		271.0			3,741.2		5,278.6
Pension and other post-retirement plans (a)	95.1		95.1		95.1		95.1		95.1			(a)		475.5
Purchase commitments
Fuel	403.1		183.5		130.2		100.4		106.7			221.1		1,145.0
Power	63.0		63.6		58.0		58.4		58.4			294.2		595.6

(a)    Evergy expects to make contributions to the pension and other post-retirement plans beyond 2026 but the amounts are not yet determined.

Long-term debt includes current maturities. Long-term debt principal excludes $80.5 million of unamortized net discounts and debt issuance costs and a $97.9 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger that was completed in 2018. Variable rate interest obligations are based on rates as of December 31, 2021.

Evergy expects to contribute $95.1 million to the pension and other post-retirement plans in 2022, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2026 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2022 are estimates based on information available in determining the

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amount for 2022. Actual amounts for years after 2022 could be significantly different than the estimated amounts in the table above.

Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.

At December 31, 2021, Evergy has other insignificant commitments as well as other insignificant long-term liabilities recorded on its consolidated balance sheet, which are not included in the table above.

Common Stock Dividends

The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2022.

The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels. See Note 17 to the consolidated financial statements for further discussion of restrictions on dividend payments.

Cash Flows

The following table presents Evergy's cash flows from operating, investing and financing activities.

	2021		2020
	(millions)
Cash flows from operating activities	$	1,351.7	$	1,753.8
Cash flows used in investing activities	(1,913.8)		(1,533.7)
Cash flows from (used in) financing activities	443.4		(98.4)

Cash Flows from Operating Activities

Evergy's cash flows from operating activities decreased $402.1 million in 2021, compared to 2020, primarily driven by:

•$365.5 million of cash payments for net fuel and purchased power costs during the February 2021 winter weather event;

•a $182.3 million increase in cash payments in 2021 primarily due to the timing of payments made to taxing authorities for property tax payments as well as various suppliers and service providers for goods and services purchased in the ordinary course of business; and

•$35.4 million in payments made for a Wolf Creek refueling outage in 2021; partially offset by

•a $194.9 million increase in cash receipts for retail electric sales in 2021 primarily driven by favorable weather and an increase in weather-normalized commercial and industrial demand; and

•$89.9 million of cash receipts related to non-regulated energy marketing margins earned during the February 2021 winter weather event.

Cash Flows used in Investing Activities

Evergy's cash flows used in investing activities increased $380.1 million in 2021, compared to 2020, primarily driven by:

•a $412.2 million increase in additions to property, plant and equipment due to increases at Evergy Kansas Central, Evergy Metro and Evergy Missouri West of $116.7 million, $117.5 million and $176.6 million,

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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; partially offset by

•an increase of $11.1 million in proceeds from COLI investments at Evergy Kansas Central due to a higher number of policy settlements in 2021.

Cash Flows from (used in) Financing Activities

Evergy's cash flows from (used in) financing activities increased $541.8 million in 2021, compared to 2020, primarily driven by:

•a $1,087.4 million increase in short-term debt borrowings primarily driven by:

◦a $553.2 million increase at Evergy Kansas Central primarily due to the repayment of $199.2 million of commercial paper in 2020 and increased borrowing in 2021 driven by $133.9 million of fuel and purchased power costs related to the February 2021 winter weather event and higher cash capital expenditures in 2021; and

◦a $357.8 million increase at Evergy Missouri West primarily due to $296.4 million of fuel and purchased power costs related to the February 2021 winter weather event, the repayment of $80.9 million of Evergy Missouri West's 8.27% Senior Notes in November 2021 and higher cash capital expenditures in 2021; and

•$112.5 million of Evergy common stock issued in April 2021 pursuant to a securities purchase agreement with an affiliate of Bluescape; partially offset by

•a $391.5 million decrease in proceeds from long-term debt, net due to Evergy Kansas Central's issuance of $500.0 million of 3.45% FMBs in April 2020 and Evergy Metro's issuance of $400.0 million of 2.25% Mortgage Bonds in May 2020; partially offset by Evergy Missouri West's issuance of $500.0 million of Series A, B and C Senior Notes in April 2021;

•a $180.9 million increase in retirements of long-term debt, net due to Evergy's repayment of $350.0 million of 4.85% Senior Notes in April 2021 and Evergy Missouri West's repayment of $80.9 million of 8.27% Senior Notes in November 2021; partially offset by Evergy Kansas Central's repayment of $250.0 million of 5.10% FMBs in May 2020; and

•a $7.5 million increase in the repayment of borrowings against cash surrender value of corporate-owned life insurance primarily due to a higher number of policy settlements in 2021.

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EVERGY KANSAS CENTRAL, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.

The following table summarizes Evergy Kansas Central's comparative results of operations.

	2021		Change		2020
	(millions)
Operating revenues	$	2,847.3	$	429.2	$	2,418.1
Fuel and purchased power	638.7		211.1		427.6
SPP network transmission costs	290.4		27.2		263.2
Operating and maintenance	530.8		17.2		513.6
Depreciation and amortization	467.2		14.1		453.1
Taxes other than income tax	203.9		10.6		193.3
Income from operations	716.3		149.0		567.3
Other expense, net	(7.6)		5.1		(12.7)
Interest expense	160.3		(7.3)		167.6
Income tax expense	51.7		(104.1)		155.8
Equity in earnings of equity method investees, net of income taxes	4.0		(0.6)		4.6
Net income	500.7		264.9		235.8
Less: Net income attributable to noncontrolling interests	12.2		0.5		11.7
Net income attributable to Evergy Kansas Central, Inc.	$	488.5	$	264.4	$	224.1

Evergy Kansas Central Utility Gross Margin and MWh Sales

The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold.

	Revenues and Expenses						MWhs Sold
	2021		Change		2020		2021	Change	2020
Retail revenues	(millions)						(thousands)
Residential	$	824.1	$	22.9	$	801.2	6,565	74	6,491
Commercial	694.1		28.5		665.6		7,112	237	6,875
Industrial	391.7		11.8		379.9		5,533	291	5,242
Other retail revenues	17.1		(0.6)		17.7		40	(1)	41
Total electric retail	1,927.0		62.6		1,864.4		19,250	601	18,649
Wholesale revenues	453.1		237.7		215.4		10,175	2,324	7,851
Transmission revenues	322.9		35.6		287.3		N/A	N/A	N/A
Other revenues	144.3		93.3		51.0		N/A	N/A	N/A
Operating revenues	2,847.3		429.2		2,418.1		29,425	2,925	26,500
Fuel and purchased power	(638.7)		(211.1)		(427.6)
SPP network transmission costs	(290.4)		(27.2)		(263.2)
Utility gross margin (a)	1,918.2		190.9		1,727.3
Operating and maintenance	(530.8)		(17.2)		(513.6)
Depreciation and amortization	(467.2)		(14.1)		(453.1)
Taxes other than income tax	(203.9)		(10.6)		(193.3)
Income from operations	$	716.3	$	149.0	$	567.3

(a)Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.

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Evergy Kansas Central's utility gross margin increased $190.9 million in 2021, compared to 2020, driven by:

•$94.5 million of non-regulated energy marketing margins recognized during the February 2021 winter weather event;

•a $42.9 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased by 5%, partially offset by a 3% decrease in heating degree days) and an increase in weather-normalized commercial and industrial demand;

•a $35.6 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2021;

•a $33.8 million increase due to other impacts from the February 2021 winter weather event driven by higher utility gross margin at Evergy Kansas Central's non-regulated 8% ownership share of JEC due to higher wholesale sales prices and MWhs sold in February 2021; and

•a $5.7 million increase related to Evergy Kansas Central's TDC rider in 2021; partially offset by

•a $21.6 million decrease in revenues due to rate reductions beginning January 1, 2021, in Kansas to reflect the exemption of Evergy Kansas Central from Kansas corporate income taxes.

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense increased $17.2 million in 2021, compared to 2020, primarily driven by:

•a $22.9 million increase in various administrative and general operating and maintenance expenses driven by an increase in costs billed for common use assets from Evergy Metro in 2021 primarily related to software assets placed into service in the third quarter of 2020;

•$7.9 million of costs related to non-regulated energy marketing margins recognized during the February 2021 winter weather event;

•$7.6 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses;

•a $6.3 million increase in plant operating and maintenance expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2021 and higher material and supplies costs;

•a $3.5 million increase in advisor expenses incurred in 2021 associated with strategic planning; and

•a $1.4 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central in 2021 related to its ownership interest in Wolf Creek; partially offset by

•a $31.2 million decrease in voluntary severance expenses due to a $27.4 million decrease related to Evergy voluntary exit programs in 2020 and $3.8 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020; and

•a $4.8 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor and contractor costs primarily driven by a higher mix of transmission capital projects in 2021.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $14.1 million in 2021, compared to 2020, primarily driven by higher capital additions in 2021.

Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net decreased $5.1 million in 2021, compared to 2020, primarily driven by:

•a $5.8 million decrease due to higher equity AFUDC primarily driven by higher construction work in progress balances in 2021; and

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•$2.8 million of other income recorded in 2021 related to contract termination fees; partially offset by

•$4.8 million of lower COLI benefits in 2021.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense decreased $7.3 million in 2021, compared to 2020, primarily driven by:

•a $6.4 million decrease in interest expense on short-term borrowings primarily due to lower weighted-average interest rates in 2021; and

•a $2.2 million net decrease due to the redemption of Evergy Kansas Central's $250.0 million of 5.10% FMBs in May 2020, which decreased interest expense by $6.8 million, partially offset by a $4.6 million increase due to the issuance of Evergy Kansas Central's $500.0 million of 3.45% FMBs in April 2020.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense decreased $104.1 million in 2021, compared to 2020, primarily driven by:

•a $109.0 million net decrease due to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate;

•a $30.2 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Kansas Central, from Kansas corporate income tax beginning in January 2021; and

•a $15.7 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by

•a $42.7 million increase due to higher pre-tax income in 2021;

•a $5.1 million increase due to lower expected COLI proceeds for 2021; and

•a $1.5 million increase due to lower wind and other income tax credits in 2021.

See Note 19 to the consolidated financial statements for more information regarding the change in the Kansas corporate income tax rate.

EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.

The following table summarizes Evergy Metro's comparative results of operations.

	2021		Change		2020
	(millions)
Operating revenues	$	1,913.7	$	208.1	$	1,705.6
Fuel and purchased power	613.5		197.4		416.1
Operating and maintenance	365.4		(42.1)		407.5
Depreciation and amortization	321.0		(5.1)		326.1
Taxes other than income tax	126.2		4.6		121.6
Income from operations	487.6		53.3		434.3
Other expense, net	(13.1)		1.8		(14.9)
Interest expense	109.8		(3.8)		113.6
Income tax expense	52.4		45.3		7.1
Net income	$	312.3	$	13.6	$	298.7

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Evergy Metro Utility Gross Margin and MWh Sales

The following table summarizes Evergy Metro's utility gross margin and MWhs sold.

	Revenues and Expenses						MWhs Sold
	2021		Change		2020		2021	Change	2020
Retail revenues	(millions)						(thousands)
Residential	$	691.9	(22.8)		$	714.7	5,517	87	5,430
Commercial	713.3		(3.8)		717.1		7,286	258	7,028
Industrial	122.0		(6.8)		128.8		1,669	(26)	1,695
Other retail revenues	9.2		(2.5)		11.7		70	(1)	71
Total electric retail	1,536.4		(35.9)		1,572.3		14,542	318	14,224
Wholesale revenues	242.6		207.6		35.0		5,523	(434)	5,957
Transmission revenues	17.1		3.2		13.9		N/A	N/A	N/A
Other revenues	117.6		33.2		84.4		N/A	N/A	N/A
Operating revenues	1,913.7		208.1		1,705.6		20,065	(116)	20,181
Fuel and purchased power	(613.5)		(197.4)		(416.1)
Utility gross margin (a)	1,300.2		10.7		1,289.5
Operating and maintenance	(365.4)		42.1		(407.5)
Depreciation and amortization	(321.0)		5.1		(326.1)
Taxes other than income tax	(126.2)		(4.6)		(121.6)
Income from operations	$	487.6	$	42.6	$	434.3

(a) Utility gross margin is a non-GAAP financial measure.  See explanation of utility gross margin under Evergy's Results of Operations.

Evergy Metro's utility gross margin increased $10.7 million in 2021, compared to 2020, driven by:

•a $30.7 million increase primarily due to higher retail sales driven by favorable weather (cooling degree days increased 20%, partially offset by a 5% decrease in heating degree days), partially offset by a decrease in weather-normalized residential and industrial demand; partially offset by

•an $11.4 million decrease due to impacts from the February 2021 winter weather event primarily driven by jurisdictional allocation differences currently present between Evergy Metro's fuel recovery mechanisms in Missouri and Kansas regarding its refund to customers for the net increase in wholesale revenues in February 2021; and

•an $8.6 million decrease in revenues due to a rate reduction beginning January 1, 2021, in Kansas to reflect Evergy Metro's exemption from Kansas corporate income taxes.

Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased $42.1 million in 2021, compared to 2020, primarily driven by:

•a $23.5 million decrease in voluntary severance expenses due to a $19.7 million decrease related to Evergy voluntary exit programs in 2020 and a $3.8 million decrease in voluntary severance expenses related to Wolf Creek voluntary exit programs in 2020; and

•a $20.6 million decrease in various administrative and general operating and maintenance expenses driven by an increase in costs billed for common use assets to Evergy Kansas Central in 2021 primarily related to software assets placed into service in the third quarter of 2020; partially offset by

•$2.1 million of costs associated with executive transition in 2021, including inducement bonuses, severance agreements and other transition expenses; and

•a $1.3 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received in 2021 by Evergy Metro related to its ownership interest in Wolf Creek.

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Evergy Metro Interest Expense

Evergy Metro's interest expense decreased $3.8 million in 2021, compared to 2020, primarily due to lower interest expense on short-term borrowings driven by lower weighted-average interest rates and lower commercial paper balances in 2021.

Evergy Metro Income Tax Expense

Evergy Metro's income tax expense increased $45.3 million in 2021, compared to 2020, primarily driven by:

•a $32.2 million increase related to the revaluation of deferred income tax assets and liabilities in the second quarter of 2020 due to the change in the Kansas corporate income tax rate;

•a $15.1 million increase due to higher pre-tax income in 2021;

•a $5.0 million increase due to lower wind and other income tax credits in 2021, primarily driven by the expiration of production tax credits at the Spearville 2 wind facility in the fourth quarter of 2020 and lower research and development tax credits in 2021; and

•a $2.8 million increase due to higher non-deductible officer compensation in 2021; partially offset by

•a $14.1 million decrease as a result of the state of Kansas exempting certain public utilities, including Evergy Metro from Kansas corporate income tax beginning in January 2021.

See Note 19 to the consolidated financial statements for more information regarding the change in the Kansas corporate income tax rate.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item 1A, Risk Factors and Part II, Item 7, MD&A for further discussion of risk factors.

The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and security prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and non-qualified retirement benefits, as well as limited equity investments in early-stage energy solution companies, give rise to security price risk.

Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a material adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-performance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize.

Hedging Strategies

From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange.

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Commodity Price Risk

The Evergy Companies engage in the wholesale and retail sale of electricity as part of their regulated electric operations in addition to limited non-regulated energy marketing activities. These activities expose the Evergy Companies to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume, as well as the wholesale market prices received by the Evergy Companies' generation resources and the wholesale market prices paid to procure power to serve customer load or satisfy regulatory or contractual obligations. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results.

Interest Rate Risk

Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2021, 2.8% of Evergy's long-term debt was variable rate debt, short-term borrowings and current maturities of fixed rate debt that were exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt, short-term borrowings and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.

At December 31, 2021, Evergy had $1,815.3 million of variable rate debt, short-term borrowings and current maturities of fixed rate debt. A 100-basis-point change in interest rates applicable to this debt would impact Evergy's income before income taxes on an annualized basis by approximately $16.1 million.

Credit Risk

Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.

Investment Risk

Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2021, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.

As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory liability for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy.

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In addition to Evergy's investments in debt and equity securities in its nuclear decommissioning and pension trusts, Evergy also makes limited equity investments in early-stage energy solution companies. These limited equity investments are often in privately-owned companies that do not have reasonably determinable fair values. However, from time to time, these investments could have changes in fair value as a result of acquisitions, mergers, initial public offerings, or observable market transactions for similar investments. Evergy typically seeks to liquidate its position in these companies as soon as practicable following the occurrence of an exit event such as an acquisition or initial public offering (including after the expiration of any related lock-up provisions), which serves to largely mitigate any ongoing market risk related to the investments. At December 31, 2021, Evergy had a $31.4 million investment, including a $27.7 million unrealized gain, in an early-stage energy solution company that was acquired and became a publicly traded company through a transaction involving a SPAC in the fourth quarter of 2021. This investment is currently subject to a lock-up provision on its sale until March 2022 and is exposed to significant equity price risk. A 50% decline in the stock price of this investment would impact Evergy's income before income taxes by approximately $14 million. Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility. See "Non-GAAP Measures" within Part II, Item 7, MD&A - Executive Summary for additional information.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm
Evergy, Inc.		63
Evergy Kansas Central, Inc.		66
Evergy Metro, Inc.		69
Evergy, Inc.
Consolidated Statements of Comprehensive Income		72
Consolidated Balance Sheets		73
Consolidated Statements of Cash Flows		75
Consolidated Statements of Changes in Equity		76
Evergy Kansas Central, Inc.
Consolidated Statements of Income		77
Consolidated Balance Sheets		78
Consolidated Statements of Cash Flows		80
Consolidated Statements of Changes in Equity		81
Evergy Metro, Inc.
Consolidated Statements of Comprehensive Income		82
Consolidated Balance Sheets		83
Consolidated Statements of Cash Flows		85
Consolidated Statements of Changes in Equity		86
Combined Notes to Consolidated Financial Statements
Note 1:	Summary of Significant Accounting Policies	87
Note 2:	Revenue	93
Note 3:	Receivables	99
Note 4:	Rate Matters and Regulation	100
Note 5:	Goodwill	109
Note 6:	Asset Retirement Obligations	109
Note 7:	Property, Plant & Equipment	110
Note 8:	Jointly-Owned Electric Utility Plants	111
Note 9:	Pension Plans and Post-Retirement Benefits	112
Note 10:	Equity Compensation	125
Note 11:	Short-Term Borrowings and Short-Term Bank Lines of Credit	126
Note 12:	Long-Term Debt	128
Note 13:	Fair Value Measurements	131
Note 14:	Commitments and Contingencies	136
Note 15:	Guarantees	140
Note 16:	Related Party Transactions and Relationships	141
Note 17:	Shareholders' Equity	142
Note 18:	Variable Interest Entities	143
Note 19:	Taxes	144
Note 20:	Leases	150

62

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Evergy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements

Critical Audit Matter Description

The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the

63

economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.

The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.

•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to certain regulated plants.

•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available

64

information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.

•For regulatory matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.

•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:

◦We inquired of management about property, plant, and equipment that may be abandoned.

◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.

◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.

•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.

•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.

•We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.

/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  

February 24, 2022 

We have served as the Company's auditor since 2002.

65

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Evergy Kansas Central, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements

Critical Audit Matter Description

The Company is subject to rate regulation by the Kansas Corporation Commission (the "Commission"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures,

66

such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.

The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commission's regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commission will not approve (1) full recovery of the costs of providing utility service or (2) recovery of all amounts invested in the utility business and a reasonable return on that investment.

When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commission, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commission included the following, among others:

•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.

•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.

•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commission for the Company and other public utilities in Kansas, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commission's treatment of similar costs under similar circumstances.

•For regulatory matters in process, we inspected the Company’s filings with the Commission and the filings with the Commission by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

67

•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:

◦We inquired of management about property, plant, and equipment that may be abandoned.

◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.

◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commission to identify any evidence that may contradict management's assertion regarding probability of an abandonment.

•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.

•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.

/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  

February 24, 2022  

We have served as the Company's auditor since 2002.

68

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholder and the Board of Directors of Evergy Metro, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Evergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 4 to the financial statements

Critical Audit Matter Description

The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which has jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant,

69

and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense.

The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are determined and approved in regulatory proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment.

When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with a return. Auditing the judgments related to the nature and likelihood of the retirement and the probability of recovering the generating plant investment with a return involves especially subjective and complex judgment.

We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

•We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.

•We tested the effectiveness of management's controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates.

•We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

•We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions' treatment of similar costs under similar circumstances.

70

•For regulatory matters in process, we inspected the Company’s filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company’s future rates, for any evidence that might contradict management’s assertions.

•We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:

◦We inquired of management about property, plant, and equipment that may be abandoned.

◦We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life.

◦We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.

•We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.

•We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.

/s/ DELOITTE & TOUCHE LLP

Kansas City, Missouri  

February 24, 2022  

We have served as the Company's auditor since 2002.

71

EVERGY, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31		2021		2020		2019
	(millions, except per share amounts)
OPERATING REVENUES		$	5,586.7	$	4,913.4	$	5,147.8
OPERATING EXPENSES:
Fuel and purchased power		1,557.0		1,099.0		1,265.0
SPP network transmission costs		290.4		263.2		251.3
Operating and maintenance		1,107.5		1,163.0		1,218.5
Depreciation and amortization		896.4		880.1		861.7
Taxes other than income tax		380.5		364.2		365.5
Total Operating Expenses		4,231.8		3,769.5		3,962.0
INCOME FROM OPERATIONS		1,354.9		1,143.9		1,185.8
OTHER INCOME (EXPENSE):
Investment earnings		59.9		10.8		11.0
Other income		46.3		31.3		26.9
Other expense		(87.4)		(78.2)		(76.9)
Total Other Income (Expense), Net		18.8		(36.1)		(39.0)
Interest expense		372.6		383.9		374.0
INCOME BEFORE INCOME TAXES		1,001.1		723.9		772.8
Income tax expense		117.4		102.2		97.0
Equity in earnings of equity method investees, net of income taxes		8.2		8.3		9.8
NET INCOME		891.9		630.0		685.6
Less: Net income attributable to noncontrolling interests		12.2		11.7		15.7
NET INCOME ATTRIBUTABLE TO EVERGY, INC.		$	879.7	$	618.3	$	669.9
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY, INC. (see Note 1)
Basic earnings per common share		$	3.84	$	2.72	$	2.80
Diluted earnings per common share		$	3.83	$	2.72	$	2.79
AVERAGE COMMON SHARES OUTSTANDING
Basic		229.0		227.2		239.5
Diluted		229.6		227.5		239.9
COMPREHENSIVE INCOME
NET INCOME		$	891.9	$	630.0	$	685.6
Derivative hedging activity
Loss on derivative hedging instruments		—		—		(64.4)
Income tax benefit		—		—		16.5
Net loss on derivative hedging instruments		—		—		(47.9)
Reclassification to expenses, net of tax		5.5		3.0		1.5
Derivative hedging activity, net of tax		5.5		3.0		(46.4)
Defined benefit pension plans
Net loss arising during period		(0.1)		(3.0)		(0.8)
Income tax benefit		—		0.7		0.2
Net loss arising during period, net of tax		(0.1)		(2.3)		(0.6)
Amortization of net losses included in net periodic benefit costs, net of tax		—		(0.1)		—
Change in unrecognized pension expense, net of tax		(0.1)		(2.4)		(0.6)
Total other comprehensive income (loss)		5.4		0.6		(47.0)
COMPREHENSIVE INCOME		897.3		630.6		638.6
Less:  comprehensive income attributable to noncontrolling interest		12.2		11.7		15.7
COMPREHENSIVE INCOME ATTRIBUTABLE TO EVERGY, INC.		$	885.1	$	618.9	$	622.9

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

72

EVERGY, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	26.2		$	144.9
Receivables, net of allowance for credit losses of $32.9 and $19.3, respectively		221.6			273.9
Accounts receivable pledged as collateral		319.0			360.0
Fuel inventory and supplies		566.7			504.5
Income taxes receivable		28.0			62.9
Regulatory assets		424.1			206.2
Prepaid expenses		49.3			48.2
Other assets		75.4			23.7
Total Current Assets		1,710.3			1,624.3
PROPERTY, PLANT AND EQUIPMENT, NET		21,002.6			19,951.0
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		147.8			154.9
OTHER ASSETS:
Regulatory assets		1,991.1			1,868.2
Nuclear decommissioning trust fund		768.7			652.1
Goodwill		2,336.6			2,336.6
Other		563.4			527.7
Total Other Assets		5,659.8			5,384.6
TOTAL ASSETS		$	28,520.5		$	27,114.8

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

73

EVERGY, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt		$	389.3		$	436.4
Current maturities of long-term debt of variable interest entities		—			18.8
Notes payable and commercial paper		1,159.3			315.0
Collateralized note payable		319.0			360.0
Accounts payable		639.7			654.0
Accrued taxes		150.4			143.8
Accrued interest		118.8			123.4
Regulatory liabilities		70.7			26.1
Asset retirement obligations		19.5			40.2
Accrued compensation and benefits		51.6			55.5
Other		184.6			182.6
Total Current Liabilities		3,102.9			2,355.8
LONG-TERM LIABILITIES:
Long-term debt, net		9,297.9			9,190.9
Deferred income taxes		1,861.9			1,664.8
Unamortized investment tax credits		181.4			186.7
Regulatory liabilities		2,705.0			2,638.8
Pension and post-retirement liability		879.1			1,149.4
Asset retirement obligations		940.6			901.7
Other		310.0			308.2
Total Long-Term Liabilities		16,175.9			16,040.5
Commitments and Contingencies (Note 14)
EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value 229,299,900 and 226,836,670 shares issued, stated value		7,205.5			7,080.0
Retained earnings		2,082.9			1,702.8
Accumulated other comprehensive loss		(44.0)			(49.4)
Total Evergy, Inc. Shareholders' Equity		9,244.4			8,733.4
Noncontrolling Interests		(2.7)			(14.9)
Total Equity		9,241.7			8,718.5
TOTAL LIABILITIES AND EQUITY		$	28,520.5		$	27,114.8

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

74

EVERGY, INC.
Consolidated Statements of Cash Flows
Year Ended December 31	2021		2020		2019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	891.9	$	630.0	$	685.6
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	896.4		880.1		861.7
Amortization of nuclear fuel	51.4		58.3		51.4
Amortization of deferred refueling outage	25.1		25.4		25.5
Amortization of corporate-owned life insurance	24.1		20.1		19.8
Non-cash compensation	15.6		16.0		16.3
Net deferred income taxes and credits	102.2		126.9		121.5
Allowance for equity funds used during construction	(29.4)		(17.2)		(2.2)
Payments for asset retirement obligations	(22.6)		(18.4)		(17.8)
Equity in earnings of equity method investees, net of income taxes	(8.2)		(8.3)		(9.8)
Income from corporate-owned life insurance	(14.2)		(8.2)		(29.6)
Other	(13.8)		0.8		(3.2)
Changes in working capital items:
Accounts receivable	69.9		(4.9)		(23.1)
Accounts receivable pledged as collateral	41.0		(21.0)		26.0
Fuel inventory and supplies	(61.6)		(22.3)		29.9
Prepaid expenses and other current assets	(299.8)		16.9		43.4
Accounts payable	(55.1)		134.3		16.9
Accrued taxes	41.4		6.7		(8.2)
Other current liabilities	(19.4)		(98.9)		(59.4)
Changes in other assets	(251.5)		119.5		79.8
Changes in other liabilities	(31.7)		(82.0)		(75.5)
Cash Flows from Operating Activities	1,351.7		1,753.8		1,749.0
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(1,972.5)		(1,560.3)		(1,210.1)
Purchase of securities - trusts	(158.2)		(65.6)		(55.8)
Sale of securities - trusts	115.7		56.5		47.3
Investment in corporate-owned life insurance	(14.2)		(19.1)		(18.3)
Proceeds from investment in corporate-owned life insurance	77.0		65.9		161.7
Other investing activities	38.4		(11.1)		(5.1)
Cash Flows used in Investing Activities	(1,913.8)		(1,533.7)		(1,080.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	840.5		(246.9)		(176.7)
Proceeds from term loan facility	—		—		1,000.0
Repayment of term loan facility	—		—		(1,000.0)
Collateralized short-term borrowings, net	(41.0)		21.0		(26.0)
Issuance of common stock	112.5		—		—
Proceeds from long-term debt	497.3		888.8		2,372.7
Retirements of long-term debt	(432.0)		(251.1)		(701.1)
Retirements of long-term debt of variable interest entities	(18.8)		(32.3)		(30.3)
Payment for settlement of interest rate swap accounted for as a cash flow hedge	—		—		(69.8)
Borrowings against cash surrender value of corporate-owned life insurance	54.4		55.5		59.4
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(62.3)		(54.8)		(127.5)
Cash dividends paid	(497.9)		(465.0)		(462.5)
Repurchase of common stock under repurchase plan	—		—		(1,628.7)
Distributions to shareholders of noncontrolling interests	—		—		(8.6)
Other financing activities	(9.3)		(13.6)		(6.7)
Cash Flows from (used in) Financing Activities	443.4		(98.4)		(805.8)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(118.7)		121.7		(137.1)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	144.9		23.2		160.3
End of period	$	26.2	$	144.9	$	23.2

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

75

EVERGY, INC.
Consolidated Statements of Changes in Equity
	Evergy, Inc. Shareholders
	Common stock shares	Common stock		Retained earnings		AOCI		Non-controlling interests		Total equity
	(millions, except share amounts)
Balance as of December 31, 2018	255,326,252	$	8,685.2	$	1,346.0	$	(3.0)	$	(37.5)	$	9,990.7
Net income	—	—		669.9		—		15.7		685.6
Issuance of stock compensation and reinvested dividends, net of tax withholding	111,849	(2.4)		—		—		—		(2.4)
Dividends declared on common stock ($1.93 per share)	—	—		(462.5)		—		—		(462.5)
Dividend equivalents declared	—	—		(1.9)		—		—		(1.9)
Stock compensation expense	—	16.3		—		—		—		16.3
Repurchase of common stock under repurchase plan	(28,796,658)	(1,628.7)		—		—		—		(1,628.7)
Consolidation of noncontrolling interests	—	—		—		—		3.8		3.8
Distributions to shareholders of noncontrolling interests	—	—		—		—		(8.6)		(8.6)
Derivative hedging activity, net of tax	—	—		—		(46.4)		—		(46.4)
Change in unrecognized pension expense, net of tax	—	—		—		(0.6)		—		(0.6)
Balance as of December 31, 2019	226,641,443	7,070.4		1,551.5		(50.0)		(26.6)		8,545.3
Net income	—	—		618.3		—		11.7		630.0
Issuance of stock compensation and reinvested dividends, net of tax withholding	195,227	(5.9)		—		—		—		(5.9)
Dividends declared on common stock ($2.05 per share)	—	—		(465.0)		—		—		(465.0)
Dividend equivalents declared	—	—		(2.0)		—		—		(2.0)
Stock compensation expense	—	16.0		—		—		—		16.0
Derivative hedging activity, net of tax	—	—		—		3.0		—		3.0
Change in unrecognized pension expense, net of tax	—	—		—		(2.4)		—		(2.4)
Other	—	(0.5)		—		—		—		(0.5)
Balance as of December 31, 2020	226,836,670	7,080.0		1,702.8		(49.4)		(14.9)		8,718.5
Net income	—	—		879.7		—		12.2		891.9
Issuance of stock, net of issuance costs	2,269,447	112.5		—		—		—		112.5
Issuance of stock compensation and reinvested dividends, net of tax withholding	139,729	(2.4)		—		—		—		(2.4)
Issuance of restricted common stock	54,054	2.9		—		—		—		2.9
Dividends declared on common stock ($2.178 per share)	—	—		(497.9)		—		—		(497.9)
Dividend equivalents declared	—	—		(1.7)		—		—		(1.7)
Stock compensation expense	—	13.8		—		—		—		13.8
Unearned compensation
Issuance of restricted common stock	—	(2.9)		—		—		—		(2.9)
Compensation expense recognized	—	1.8		—		—		—		1.8
Derivative hedging activity, net of tax	—	—		—		5.5		—		5.5
Change in unrecognized pension expense, net of tax	—	—		—		(0.1)		—		(0.1)
Other	—	(0.2)		—		—		—		(0.2)
Balance as of December 31, 2021	229,299,900	$	7,205.5	$	2,082.9	$	(44.0)	$	(2.7)	$	9,241.7

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

76

EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Income
Year Ended December 31		2021		2020		2019
	(millions)
OPERATING REVENUES		$	2,847.3	$	2,418.1	$	2,507.4
OPERATING EXPENSES:
Fuel and purchased power		638.7		427.6		493.0
SPP network transmission costs		290.4		263.2		251.3
Operating and maintenance		530.8		513.6		530.5
Depreciation and amortization		467.2		453.1		443.8
Taxes other than income tax		203.9		193.3		192.3
Total Operating Expenses		2,131.0		1,850.8		1,910.9
INCOME FROM OPERATIONS		716.3		567.3		596.5
OTHER INCOME (EXPENSE):
Investment earnings		1.3		4.8		4.1
Other income		27.0		21.4		23.1
Other expense		(35.9)		(38.9)		(40.1)
Total Other Expense, Net		(7.6)		(12.7)		(12.9)
Interest expense		160.3		167.6		177.0
INCOME BEFORE INCOME TAXES		548.4		387.0		406.6
Income tax expense		51.7		155.8		52.1
Equity in earnings of equity method investees, net of income taxes		4.0		4.6		4.6
NET INCOME		500.7		235.8		359.1
Less: Net income attributable to noncontrolling interests		12.2		11.7		15.7
NET INCOME ATTRIBUTABLE TO EVERGY KANSAS CENTRAL, INC.		$	488.5	$	224.1	$	343.4

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

77

EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	3.1		$	28.7
Receivables, net of allowance for credit losses of $13.0 and $7.5, respectively		201.6			218.9
Related party receivables		21.2			6.7
Accounts receivable pledged as collateral		153.0			180.0
Fuel inventory and supplies		283.2			276.4
Income taxes receivable		9.6			25.3
Regulatory assets		257.3			96.2
Prepaid expenses and other assets		41.0			27.4
Total Current Assets		970.0			859.6
PROPERTY, PLANT AND EQUIPMENT, NET		10,548.9			10,193.6
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		147.8			154.9
OTHER ASSETS:
Regulatory assets		753.6			800.1
Nuclear decommissioning trust fund		368.4			309.8
Other		286.9			271.1
Total Other Assets		1,408.9			1,381.0
TOTAL ASSETS		$	13,075.6		$	12,589.1

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

78

EVERGY KANSAS CENTRAL, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Current maturities of long-term debt of variable interest entities		$	—		$	18.8
Notes payable and commercial paper		406.0			50.0
Collateralized note payable		153.0			180.0
Accounts payable		232.2			280.1
Related party payables		27.5			21.7
Accrued taxes		106.1			101.5
Accrued interest		71.5			72.8
Regulatory liabilities		12.8			11.9
Asset retirement obligations		7.3			11.2
Accrued compensation and benefits		13.8			11.1
Other		126.3			133.5
Total Current Liabilities		1,156.5			892.6
LONG-TERM LIABILITIES:
Long-term debt, net		3,934.2			3,931.5
Deferred income taxes		867.9			824.5
Unamortized investment tax credits		61.7			65.7
Regulatory liabilities		1,469.4			1,461.0
Pension and post-retirement liability		435.6			560.3
Asset retirement obligations		436.6			416.0
Other		172.2			156.7
Total Long-Term Liabilities		7,377.6			7,415.7
Commitments and Contingencies (Note 14)
EQUITY:
Evergy Kansas Central, Inc. Shareholder's Equity:
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued		2,737.6			2,737.6
Retained earnings		1,806.6			1,558.1
Total Evergy Kansas Central, Inc. Shareholder's Equity		4,544.2			4,295.7
Noncontrolling Interests		(2.7)			(14.9)
Total Equity		4,541.5			4,280.8
TOTAL LIABILITIES AND EQUITY		$	13,075.6		$	12,589.1

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

79

EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Cash Flows
Year Ended December 31	2021		2020		2019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	500.7	$	235.8	$	359.1
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	467.2		453.1		443.8
Amortization of nuclear fuel	25.6		28.8		25.6
Amortization of deferred refueling outage	12.6		12.7		12.8
Amortization of corporate-owned life insurance	24.1		20.1		19.8
Net deferred income taxes and credits	(1.4)		146.6		11.6
Allowance for equity funds used during construction	(14.9)		(9.1)		—
Payments for asset retirement obligations	(6.2)		(2.2)		(14.8)
Equity in earnings of equity method investees, net of income taxes	(4.0)		(4.6)		(4.6)
Income from corporate-owned life insurance	(14.2)		(8.2)		(29.0)
Other	(5.5)		(5.5)		(5.5)
Changes in working capital items:
Accounts receivable	23.5		(33.8)		(65.9)
Accounts receivable pledged as collateral	27.0		(9.0)		14.0
Fuel inventory and supplies	(6.2)		(9.4)		10.9
Prepaid expenses and other current assets	(196.1)		10.0		(11.7)
Accounts payable	(39.1)		111.6		6.9
Accrued taxes	20.3		(6.7)		20.2
Other current liabilities	(55.0)		(95.5)		12.1
Changes in other assets	(48.3)		42.9		47.0
Changes in other liabilities	(10.0)		(30.2)		(29.5)
Cash Flows from Operating Activities	700.1		847.4		822.8
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(835.7)		(719.0)		(596.1)
Purchase of securities - trusts	(129.9)		(20.2)		(21.8)
Sale of securities - trusts	97.5		18.6		21.6
Investment in corporate-owned life insurance	(14.2)		(18.3)		(17.6)
Proceeds from investment in corporate-owned life insurance	77.0		63.8		158.9
Other investing activities	26.5		(2.2)		(3.2)
Cash Flows used in Investing Activities	(778.8)		(677.3)		(458.2)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	354.0		(199.2)		(162.5)
Collateralized short-term debt, net	(27.0)		9.0		(14.0)
Proceeds from long-term debt	—		492.7		294.7
Retirements of long-term debt	—		(250.0)		(300.0)
Retirements of long-term debt of variable interest entities	(18.8)		(32.3)		(30.3)
Borrowings against cash surrender value of corporate-owned life insurance	51.4		52.7		56.5
Repayment of borrowings against cash surrender value of corporate-owned life insurance	(62.3)		(53.7)		(125.4)
Cash dividends paid	(240.0)		(160.0)		(110.0)
Distributions to shareholders of noncontrolling interests	—		—		(8.6)
Other financing activities	(4.2)		(5.8)		(4.3)
Cash Flows from (used in) Financing Activities	53.1		(146.6)		(403.9)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(25.6)		23.5		(39.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	28.7		5.2		44.5
End of period	$	3.1	$	28.7	$	5.2

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

80

EVERGY KANSAS CENTRAL, INC.
Consolidated Statements of Changes in Equity
	Evergy Kansas Central, Inc. Shareholder
	Common stock shares	Common stock		Retained earnings		Non-controlling interests		Total equity
	(millions, except share amounts)
Balance as of December 31, 2018	1	$	2,737.6	$	1,260.6	$	(37.5)	$	3,960.7
Net income	—	—		343.4		15.7		359.1
Dividends declared on common stock	—	—		(110.0)		—		(110.0)
Consolidation of noncontrolling interests	—	—		—		3.8		3.8
Distributions to shareholders of noncontrolling interests	—	—		—		(8.6)		(8.6)
Balance as of December 31, 2019	1	2,737.6		1,494.0		(26.6)		4,205.0
Net income	—	—		224.1		11.7		235.8
Dividends declared on common stock	—	—		(160.0)		—		(160.0)
Balance as of December 31, 2020	1	2,737.6		1,558.1		(14.9)		4,280.8
Net income	—	—		488.5		12.2		500.7
Dividends declared on common stock	—	—		(240.0)		—		(240.0)
Balance as of December 31, 2021	1	$	2,737.6	$	1,806.6	$	(2.7)	$	4,541.5

The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

81

EVERGY METRO, INC.
Consolidated Statements of Comprehensive Income
Year Ended December 31		2021		2020		2019
	(millions)
OPERATING REVENUES		$	1,913.7	$	1,705.6	$	1,806.5
OPERATING EXPENSES:
Fuel and purchased power		613.5		416.1		482.1
Operating and maintenance		365.4		407.5		451.9
Depreciation and amortization		321.0		326.1		318.4
Taxes other than income tax		126.2		121.6		127.6
Total Operating Expenses		1,426.1		1,271.3		1,380.0
INCOME FROM OPERATIONS		487.6		434.3		426.5
OTHER INCOME (EXPENSE):
Investment earnings		0.2		1.4		2.4
Other income		16.1		9.2		3.2
Other expense		(29.4)		(25.5)		(21.4)
Total Other Expense, Net		(13.1)		(14.9)		(15.8)
Interest expense		109.8		113.6		119.8
INCOME BEFORE INCOME TAXES		364.7		305.8		290.9
Income tax expense		52.4		7.1		35.7
NET INCOME		$	312.3	$	298.7	$	255.2
COMPREHENSIVE INCOME
NET INCOME		$	312.3	$	298.7	$	255.2
OTHER COMPREHENSIVE INCOME:
Derivative hedging activity
Reclassification to expenses, net of tax		(0.3)		(0.2)		0.7
Derivative hedging activity, net of tax		(0.3)		(0.2)		0.7
Total other comprehensive income (loss)		(0.3)		(0.2)		0.7
COMPREHENSIVE INCOME		$	312.0	$	298.5	$	255.9

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

82

EVERGY METRO, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents		$	2.1		$	71.6
Receivables, net of allowance for credit losses of $13.3 and $8.1, respectively		31.0			45.0
Related party receivables		277.8			225.6
Accounts receivable pledged as collateral		116.0			130.0
Fuel inventory and supplies		211.0			170.4
Income taxes receivable		—			3.2
Regulatory assets		86.3			82.0
Prepaid expenses		22.6			22.9
Other assets		19.7			14.2
Total Current Assets		766.5			764.9
PROPERTY, PLANT AND EQUIPMENT, NET		7,474.9			7,141.2
OTHER ASSETS:
Regulatory assets		410.7			533.5
Nuclear decommissioning trust fund		400.3			342.3
Other		104.4			133.9
Total Other Assets		915.4			1,009.7
TOTAL ASSETS		$	9,156.8		$	8,915.8

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

83

EVERGY METRO, INC.
Consolidated Balance Sheets
	December 31
	2021			2020
LIABILITIES AND EQUITY	(millions, except share amounts)
CURRENT LIABILITIES:
Collateralized note payable		$	116.0		$	130.0
Accounts payable		305.2			280.1
Related party payables		0.1			0.1
Accrued taxes		38.6			34.9
Accrued interest		26.4			30.0
Regulatory liabilities		54.6			8.0
Asset retirement obligations		11.0			21.2
Accrued compensation and benefits		37.8			44.4
Other		48.8			37.3
Total Current Liabilities		638.5			586.0
LONG-TERM LIABILITIES:
Long-term debt, net		2,925.0			2,923.0
Deferred income taxes		606.1			558.8
Unamortized investment tax credits		117.2			118.5
Regulatory liabilities		954.2			899.4
Pension and post-retirement liability		420.9			565.1
Asset retirement obligations		370.0			357.7
Other		103.7			148.1
Total Long-Term Liabilities		5,497.1			5,570.6
Commitments and Contingencies (Note 14)
EQUITY:
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value		1,563.1			1,563.1
Retained earnings		1,453.8			1,191.5
Accumulated other comprehensive income		4.3			4.6
Total Equity		3,021.2			2,759.2
TOTAL LIABILITIES AND EQUITY		$	9,156.8		$	8,915.8

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

84

EVERGY METRO, INC.
Consolidated Statements of Cash Flows
Year Ended December 31	2021		2020		2019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	312.3	$	298.7	$	255.2
Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization	321.0		326.1		318.4
Amortization of nuclear fuel	25.8		29.5		25.9
Amortization of deferred refueling outage	12.6		12.7		12.8
Net deferred income taxes and credits	10.0		(3.5)		(30.6)
Allowance for equity funds used during construction	(12.6)		(8.0)		(2.2)
Payments for asset retirement obligations	(7.4)		(7.5)		(2.5)
Other	(0.4)		(0.4)		0.3
Changes in working capital items:
Accounts receivable	43.2		(13.2)		37.0
Accounts receivable pledged as collateral	14.0		(12.0)		12.0
Fuel inventory and supplies	(40.6)		(7.4)		14.6
Prepaid expenses and other current assets	(16.3)		(7.9)		28.0
Accounts payable	(1.1)		24.6		9.1
Accrued taxes	6.9		1.6		(9.6)
Other current liabilities	44.0		2.4		(53.2)
Changes in other assets	61.5		59.1		33.7
Changes in other liabilities	(38.7)		(47.3)		(34.7)
Cash Flows from Operating Activities	734.2		647.5		614.2
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(682.9)		(565.4)		(445.0)
Purchase of securities - trusts	(28.3)		(45.4)		(34.0)
Sale of securities - trusts	18.2		37.9		25.7
Net money pool lending	(55.0)		(100.0)		—
Other investing activities	6.8		4.6		9.0
Cash Flows used in Investing Activities	(741.2)		(668.3)		(444.3)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	—		(199.3)		22.4
Collateralized short-term debt, net	(14.0)		12.0		(12.0)
Proceeds from long-term debt	—		396.2		393.2
Retirements of long-term debt	—		—		(400.0)
Cash dividends paid	(50.0)		(120.0)		(175.0)
Other financing activities	1.5		1.5		0.9
Cash Flows from (used in) Financing Activities	(62.5)		90.4		(170.5)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(69.5)		69.6		(0.6)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	71.6		2.0		2.6
End of period	$	2.1	$	71.6	$	2.0

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY METRO, INC
Consolidated Statements of Changes in Equity
	Common stock shares	Common Stock		Retained earnings		AOCI - Net gains (losses) on cash flow hedges		Total Equity
	(millions, except share amounts)
Balance as of December 31, 2018	1	$	1,563.1	$	932.6	$	4.1	$	2,499.8
Net income	—	—		255.2		—		255.2
Dividends declared on common stock	—	—		(175.0)		—		(175.0)
Derivative hedging activity, net of tax	—	—		—		0.7		0.7
Balance as of December 31, 2019	1	1,563.1		1,012.8		4.8		2,580.7
Net income	—	—		298.7		—		298.7
Dividends declared on common stock	—	—		(120.0)		—		(120.0)
Derivative hedging activity, net of tax	—	—		—		(0.2)		(0.2)
Balance as of December 31, 2020	1	1,563.1		1,191.5		4.6		2,759.2
Net income	—	—		312.3		—		312.3
Dividends declared on common stock	—	—		(50.0)		—		(50.0)
Derivative hedging activity, net of tax	—	—		—		(0.3)		(0.3)
Balance as of December 31, 2021	1	$	1,563.1	$	1,453.8	$	4.3	$	3,021.2

The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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EVERGY, INC.

EVERGY KANSAS CENTRAL, INC.

EVERGY METRO, INC.

Combined Notes to Consolidated Financial Statements

The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing.  The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report.  "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated.  "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.  

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below.

•Evergy Kansas Central, Inc. (Evergy Kansas Central) is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).

•Evergy Metro, Inc. (Evergy Metro) is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.

•Evergy Missouri West, Inc. (Evergy Missouri West) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.

•Evergy Transmission Company, LLC (Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method.

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 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri.

Principles of Consolidation

Each of Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis.  Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

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Evergy Metro elected not to apply "push-down accounting" related to the Great Plains Energy Incorporated (Great Plains Energy) and Evergy Kansas Central merger in 2018, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for Evergy Metro, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements.

Use of Estimates

The process of preparing financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition.

Fuel Inventory and Supplies

The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies.

	December 31
	2021		2020
Evergy	(millions)
Fuel inventory	$	160.9	$	145.0
Supplies	405.8		359.5
Fuel inventory and supplies	$	566.7	$	504.5
Evergy Kansas Central
Fuel inventory	$	74.3	$	79.3
Supplies	208.9		197.1
Fuel inventory and supplies	$	283.2	$	276.4
Evergy Metro
Fuel inventory	$	62.0	$	44.9
Supplies	149.0		125.5
Fuel inventory and supplies	$	211.0	$	170.4

Property, Plant and Equipment

The Evergy Companies record the value of property, plant and equipment, including that of VIEs, at cost. For plant, cost includes contracted services, direct labor and materials, indirect charges for engineering and supervision and an allowance for funds used during construction (AFUDC). AFUDC represents the allowed cost of capital used to finance utility construction activity. AFUDC equity funds are included as a non-cash item in other income and AFUDC borrowed funds are a reduction of interest expense. AFUDC is computed by applying a composite rate to qualified construction work in progress. The rates used to compute gross AFUDC are compounded semi-annually.

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The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table.

	2021		2020		2019
Evergy	(millions)
AFUDC borrowed funds	$	14.7	$	16.5	$	14.5
AFUDC equity funds	29.4		17.2		2.2
Total	$	44.1	$	33.7	$	16.7
Evergy Kansas Central
AFUDC borrowed funds	$	7.1	$	8.5	$	7.5
AFUDC equity funds	14.9		9.1		—
Total	$	22.0	$	17.6	$	7.5
Evergy Metro
AFUDC borrowed funds	$	6.0	$	6.0	$	4.3
AFUDC equity funds	12.6		8.0		2.2
Total	$	18.6	$	14.0	$	6.5

The average rates used in the calculation of AFUDC are detailed in the following table.

	2021	2020	2019
Evergy Kansas Central	4.9%	4.7%	3.0%
Evergy Metro	5.6%	5.2%	4.6%
Evergy Missouri West	2.6%	3.5%	3.7%

When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the incremental maintenance cost incurred for such outages is deferred and amortized to expense ratably over the period between planned outages.

Depreciation and Amortization

Depreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. See Note 7 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity.

The depreciable lives of Evergy's, Evergy Kansas Central's and Evergy Metro's property, plant and equipment are detailed in the following table.

	Evergy			Evergy Kansas Central				Evergy Metro
	(years)
Generating facilities	8	to	87		8	to	87	20	to	60
Transmission facilities	15	to	94		36	to	94	15	to	70
Distribution facilities	8	to	73		19	to	73	8	to	55
Other	5	to	84		7	to	84	5	to	50

Plant to be Retired, Net

When the Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset and a probable abandonment. If the asset is still in service, the net amount is classified as plant to

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be retired, net on the consolidated balance sheets. If the asset is no longer in service, the net amount is classified as a regulatory asset on the consolidated balance sheets.

The Evergy Companies must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.

Evergy Missouri West has determined that its November 2018 retirement of Sibley No. 3 Unit meets the criteria to be considered an abandonment. As of December 31, 2021, Evergy has classified the remaining Sibley No. 3 Unit net book value of $123.4 million as retired generation facilities within regulatory assets on its consolidated balance sheet. This regulatory asset is reduced by approximately $9 million of annual amortization expense, which is an amount equal to the annual depreciation expense for the asset reflected in retail rates.

In October 2019, the Missouri Public Service Commission (MPSC) granted the request of certain intervenors for an Accounting Authority Order (AAO) that requires Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes and all other costs associated with Sibley Station following the station's retirement in November 2018 for consideration in Evergy Missouri West's current rate case, which was filed in January 2022. See Note 4 for additional information regarding the AAO and Evergy Missouri West's current rate case.

Evergy Missouri West expects that the MPSC's decision in its current rate case regarding the AAO could impact the valuation of its regulatory asset for retired generation facilities but as of December 31, 2021, has concluded that no impairment is required based on the relevant facts and circumstances.

Nuclear Plant Decommissioning Costs

Nuclear plant decommissioning cost estimates are based on either the immediate dismantlement method or the deferred dismantling method as determined by the State Corporation Commission of the State of Kansas (KCC) and MPSC and include the costs of decontamination, dismantlement and site restoration. Based on these cost estimates, Evergy Kansas Central and Evergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek. Related liabilities for decommissioning are included on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets in asset retirement obligations (AROs).

As a result of the authorized regulatory treatment and related regulatory accounting, differences between the fair value of the assets held in the nuclear decommissioning trust and the amounts recorded for the accumulated accretion and depreciation expense associated with the decommissioning ARO are recorded as a regulatory liability on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets. See Note 6 for discussion of AROs including those associated with nuclear plant decommissioning costs.

Regulatory Accounting

Accounting standards are applied that recognize the economic effects of rate regulation. Accordingly, regulatory assets and liabilities have been recorded when required by a regulatory order or based on regulatory precedent. See Note 4 for additional information concerning regulatory matters.

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Cash Surrender Value of Life Insurance

Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-term assets and are detailed in the following table for Evergy. Substantially all of Evergy's COLI-related balances relate to Evergy Kansas Central's COLI activity.

	December 31
	2021		2020
Evergy	(millions)
Cash surrender value of policies	$	1,363.0	$	1,369.6
Borrowings against policies	(1,232.3)		(1,237.6)
Corporate-owned life insurance, net	$	130.7	$	132.0

Increases in cash surrender value and death benefits are recorded in other income in the Evergy Companies' consolidated statements of income and comprehensive income. Interest expense incurred on policy loans is offset against the policy income. Income from death benefits is highly variable from period to period.

Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of the following financial instruments for which it was practicable to estimate that value.

Nuclear decommissioning trust fund - The Evergy Companies' nuclear decommissioning trust fund assets are recorded at fair value based on quoted market prices of the investments held by the fund and/or valuation models.

Pension plans - For financial reporting purposes, the market value of plan assets is the fair value based on quoted market prices of the investments held by the fund and/or valuation models.

Revenue Recognition

The Evergy Companies recognize revenue on the sale of electricity to customers over time as the service is provided in the amount they have the right to invoice. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies' unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 for the balance of unbilled receivables for each of Evergy, Evergy Kansas Central and Evergy Metro as of December 31, 2021 and 2020.

The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus are not reflected on the consolidated statements of income and comprehensive income for Evergy, Evergy Kansas Central and Evergy Metro.

See Note 2 for additional details regarding revenue recognition from sales of electricity by the Evergy Companies.

Allowance for Credit Losses

Historical loss information generally provides the basis for the Evergy Companies' assessment of expected credit losses. The Evergy Companies use an aging of accounts receivable method to assess historical loss information. When historical experience may not fully reflect the Evergy Companies' expectations about the future, the Evergy Companies will adjust historical loss information, as necessary, to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information.

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Receivables are charged off when they are deemed uncollectible, which is based on a number of factors including specific facts surrounding an account and management's judgment.

Asset Impairments

Long-lived assets and finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset to be held and used is less than the carrying value of the asset, an asset impairment must be recognized in the financial statements. The amount of impairment recognized is the excess of the carrying value of the asset over its fair value.

Goodwill and indefinite lived intangible assets are tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The annual test must be performed at the same time each year. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. See Note 5 for additional details on goodwill.

Income Taxes

Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized.

The Evergy Companies recognize tax benefits based on a "more-likely-than-not" recognition threshold. In addition, the Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. Evergy Kansas Central's and Evergy Metro's income tax provisions include taxes allocated based on their separate company's income or loss.

The Evergy Companies have established a net regulatory liability for future refunds to be made to customers for amounts collected from customers in excess of income taxes in current rates. Tax credits are recognized in the year generated except for certain Evergy Kansas Central, Evergy Metro and Evergy Missouri West investment tax credits that have been deferred and amortized over the remaining service lives of the related properties.

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Other Income (Expense), Net

In 2021, Evergy's investment earnings included a $27.7 million unrealized gain related to Evergy’s investment in an early-stage energy solutions company. See “Evergy Equity Investment” in this Note 1 for further information.

The Evergy Companies’ other income includes income from AFUDC equity funds. See “Property, Plant and Equipment” in this Note 1 for these amounts for 2021, 2020 and 2019.

The table below shows the detail of other expense for each of the Evergy Companies.

	2021		2020		2019
Evergy	(millions)
Non-service cost component of net benefit cost	$	(55.6)	$	(58.6)	$	(55.6)
Other	(31.8)		(19.6)		(21.3)
Other expense	$	(87.4)	$	(78.2)	$	(76.9)
Evergy Kansas Central
Non-service cost component of net benefit cost	$	(15.6)	$	(21.2)	$	(20.1)
Other	(20.3)		(17.7)		(20.0)
Other expense	$	(35.9)	$	(38.9)	$	(40.1)
Evergy Metro
Non-service cost component of net benefit cost	$	(26.7)	$	(24.2)	$	(20.9)
Other	(2.7)		(1.3)		(0.5)
Other expense	$	(29.4)	$	(25.5)	$	(21.4)

Earnings Per Share

To compute basic earnings per share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), restricted stock and a warrant. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method or the contingently issuable share method, as applicable.

The following table reconciles Evergy's basic and diluted EPS.

	2021		2020		2019
Income	(millions, except per share amounts)
Net income	$	891.9	$	630.0	$	685.6
Less: Net income attributable to noncontrolling interests	12.2		11.7		15.7
Net income attributable to Evergy, Inc.	$	879.7	$	618.3	$	669.9
Common Shares Outstanding
Weighted average number of common shares outstanding - basic	229.0		227.2		239.5
Add: effect of dilutive securities	0.6		0.3		0.4
Diluted average number of common shares outstanding	229.6		227.5		239.9
Basic EPS	$	3.84	$	2.72	$	2.80
Diluted EPS	$	3.83	$	2.72	$	2.79

There were no anti-dilutive securities excluded from the computation of diluted EPS for 2021. Anti-dilutive shares excluded from the computation of diluted EPS for 2020 and 2019 were 127,884 RSUs and 785 RSUs, respectively.

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Supplemental Cash Flow Information

Year Ended December 31	2021		2020		2019
Evergy	(millions)
Cash paid for (received from):
Interest, net of amount capitalized	$	356.9	$	367.6	$	329.5
Interest of VIEs	0.2		0.8		1.6
Income taxes, net of refunds	(19.6)		(46.5)		(5.2)
Non-cash investing transactions:
Property, plant and equipment additions	269.3		463.3		186.0
Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends	0.7		0.9		(0.3)

Year Ended December 31	2021		2020		2019
Evergy Kansas Central	(millions)
Cash paid for (received from):
Interest, net of amount capitalized	$	149.3	$	157.5	$	143.0
Interest of VIEs	0.2		0.8		1.6
Income taxes, net of refunds	37.5		4.7		29.9
Non-cash investing transactions:
Property, plant and equipment additions	101.9		235.4		92.1

Year Ended December 31	2021		2020		2019
Evergy Metro	(millions)
Cash paid for (received from):
Interest, net of amount capitalized	$	110.8	$	109.9	$	118.4
Income taxes, net of refunds	36.6		4.8		77.0
Non-cash investing transactions:
Property, plant and equipment additions	102.2		192.5		80.7

Non-cash property, plant and equipment additions in 2020 for Evergy, Evergy Kansas Central and Evergy Metro include a non-cash addition related to the revision in estimate of the Wolf Creek ARO liability in the third quarter of 2020. See Note 6 for more details.

Dividends Declared

In February 2022, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.5725 per share on Evergy's common stock.  The common dividend is payable March 21, 2022, to shareholders of record as of March 7, 2022.

In February 2022, Evergy Kansas Central's Board of Directors declared a cash dividend to Evergy of up to $25.0 million, payable on March 18, 2022.

February 2021 Winter Weather Event

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event). The February 2021 winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace. The Evergy Companies are members of the SPP and, as a result, principally sell and purchase power for the Evergy Companies' retail electric customers through the SPP Integrated Marketplace. These circumstances

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resulted in higher than normal market prices for both natural gas and power for the duration of the February 2021 winter weather event. These higher than normal market prices also included make-whole payments calculated by the SPP to compensate natural gas generators within the SPP Integrated Marketplace for costs incurred in excess of revenues. As part of the February 2021 winter weather event and inclusive of the aforementioned items, Evergy incurred natural gas and purchased power costs, net of wholesale revenues, of $365.5 million. This $365.5 million of net fuel and purchased power costs was primarily driven by $296.4 million of costs at Evergy Missouri West and $133.9 million of costs at Evergy Kansas Central, partially offset by $64.8 million of net wholesale revenues at Evergy Metro. The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP. This review and any subsequent resettlement activity could result in increases or decreases to the final amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event and these changes could be material.

The Evergy Companies have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer substantially all of any increased fuel and purchased power costs, net of wholesale revenues, to a regulatory asset or liability for future recovery from or refund to customers. Further, in February 2021, the KCC issued an emergency AAO that allowed Evergy Kansas Central and Evergy Metro's Kansas jurisdiction to defer to a regulatory asset any extraordinary costs, including carrying costs, incurred to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings. Additionally, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC that would allow for the extraordinary costs and revenues to provide service during the February 2021 winter weather event, including carrying costs, to be deferred to a regulatory asset or a regulatory liability for consideration in future proceedings. See Note 4 for additional information regarding the AAOs.

As of December 31, 2021, the Evergy Companies have deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to the mechanisms discussed above. While the Evergy Companies expect to recover substantially all of any increased fuel and purchased power costs related to the February 2021 winter weather event from customers, the timing of the cost recovery could be delayed or spread over a longer than typical recovery timeframe by the KCC or the MPSC to help moderate monthly customer bill impacts given the extraordinary nature of the February 2021 winter weather event.

The Evergy Companies also engage in limited non-regulated energy marketing activities in various regional power markets that have historically not had a significant impact on the Evergy Companies' results of operations. These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income. As a result of the elevated market prices experienced in regional power markets across the central and southern United States driven by the February 2021 winter weather event discussed above, Evergy and Evergy Kansas Central recorded $94.5 million of energy marketing margins in 2021 related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT).

Evergy Equity Investment

From time to time, Evergy makes limited equity investments in early-stage energy solution companies. These investments have historically not had a significant impact on Evergy's results of operations. In October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC). As a result of its equity investment in the company that was acquired in the SPAC transaction, Evergy received shares of the resulting public company upon the closing of the transaction, which are subject to a restriction on sale of up for 150 days. Evergy recorded a $27.7 million unrealized gain in the fourth quarter of 2021 for the conversion of its shares into the newly formed public company and based on the closing share price as of December 31, 2021 adjusted to reflect the restriction on the sale of the shares. The fair value of Evergy's investment is largely dependent on the performance of the new public company's stock, which is subject to significant market volatility and is also affected by the restriction on sale of the shares until March 2022, when the restriction expires.

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2. REVENUE

Evergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.

Evergy
	2021		2020		2019
Revenues	(millions)
Residential	$	1,918.3	$	1,909.2	$	1,908.1
Commercial	1,681.3		1,641.7		1,781.6
Industrial	597.0		588.7		621.6
Other retail	33.1		38.5		47.1
Total electric retail	$	4,229.7	$	4,178.1	$	4,358.4
Wholesale	717.2		264.0		327.5
Transmission	356.8		318.5		309.2
Industrial steam and other	25.4		21.0		24.5
Total revenue from contracts with customers	$	5,329.1	$	4,781.6	$	5,019.6
Other	257.6		131.8		128.2
Operating revenues	$	5,586.7	$	4,913.4	$	5,147.8

Evergy Kansas Central
	2021		2020		2019
Revenues	(millions)
Residential	$	824.1	$	801.2	$	793.9
Commercial	694.1		665.6		709.1
Industrial	391.7		379.9		401.3
Other retail	17.1		17.7		21.0
Total electric retail	$	1,927.0	$	1,864.4	$	1,925.3
Wholesale	453.1		215.4		239.9
Transmission	322.9		287.3		273.3
Other	2.2		2.3		5.8
Total revenue from contracts with customers	$	2,705.2	$	2,369.4	$	2,444.3
Other	142.1		48.7		63.1
Operating revenues	$	2,847.3	$	2,418.1	$	2,507.4

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Evergy Metro
	2021		2020		2019
Revenues	(millions)
Residential	$	691.9	$	714.7	$	712.4
Commercial	713.3		717.1		786.1
Industrial	122.0		128.8		136.9
Other retail	9.2		11.7		16.3
Total electric retail	$	1,536.4	$	1,572.3	$	1,651.7
Wholesale	242.6		35.0		70.9
Transmission	17.1		13.9		17.5
Other	3.6		2.6		2.8
Total revenue from contracts with customers	$	1,799.7	$	1,623.8	$	1,742.9
Other	114.0		81.8		63.6
Operating revenues	$	1,913.7	$	1,705.6	$	1,806.5

Retail Revenues

The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed monthly at the tariff rates approved by the KCC and MPSC based on customer kWh usage.

Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.

The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Evergy Kansas Central and Evergy Metro.

Wholesale Revenues

The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities.

For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice.

Wholesale sales within the SPP Integrated Marketplace are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the MWh quantity purchased. Wholesale sales from bilateral contracts are billed monthly based on the contractually determined transaction price and the kWh quantity purchased.

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Transmission Revenues

The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP. To enable optimal use of the diverse generating resources in the SPP region, the Evergy Companies, as well as other transmission owners, allow the SPP to access and operate their transmission networks. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by the Federal Energy Regulatory Commission (FERC), which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices.

The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Evergy Kansas Central's transmission revenues from SPP include amounts that Evergy Kansas Central pays to the SPP on behalf of its retail electric customers for the use of Evergy Kansas Central's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Evergy Kansas Central pays on behalf of its retail customers. Evergy Metro and Evergy Missouri West do not pay the SPP for their retail customers’ use of the Evergy Metro and Evergy Missouri West legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP.

The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity purchased.

Industrial Steam and Other Revenues

Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to Evergy Missouri West's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage.

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3. RECEIVABLES

The Evergy Companies' receivables are detailed in the following table.

	December 31
	2021		2020
Evergy	(millions)
Customer accounts receivable - billed	$	13.7	$	5.3
Customer accounts receivable - unbilled	80.1		110.0
Other receivables	160.7		177.9
Allowance for credit losses	(32.9)		(19.3)
Total	$	221.6	$	273.9
Evergy Kansas Central
Customer accounts receivable - billed	$	9.7	$	—
Customer accounts receivable - unbilled	26.4		50.7
Other receivables	178.5		175.7
Allowance for credit losses	(13.0)		(7.5)
Total	$	201.6	$	218.9
Evergy Metro
Customer accounts receivable - billed	$	2.7	$	3.3
Customer accounts receivable - unbilled	25.9		27.9
Other receivables	15.7		21.9
Allowance for credit losses	(13.3)		(8.1)
Total	$	31.0	$	45.0

The Evergy Companies' other receivables at December 31, 2021 and 2020, consisted primarily of receivables from partners in jointly-owned electric utility plants, wholesale sales receivables and receivables related to alternative revenue programs. The Evergy Companies' other receivables also included receivables from contracts with customers as summarized in the following table.

	December 31
	2021		2020
	(millions)
Evergy	$	63.7	$	57.5
Evergy Kansas Central	62.6		49.9
Evergy Metro	0.5		6.9

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The change in the Evergy Companies' allowance for credit losses is summarized in the following table.

	2021		2020
Evergy	(millions)
Beginning balance January 1	$	19.3	$	10.5
Credit loss expense	28.0		24.9
Write-offs	(26.4)		(28.6)
Recoveries of prior write-offs	12.0		12.5
Ending balance December 31	$	32.9	$	19.3
Evergy Kansas Central
Beginning balance January 1	$	7.5	$	3.8
Credit loss expense	12.0		11.1
Write-offs	(11.0)		(10.0)
Recoveries of prior write-offs	4.5		2.6
Ending balance December 31	$	13.0	$	7.5
Evergy Metro
Beginning balance January 1	$	8.1	$	4.6
Credit loss expense	10.5		9.0
Write-offs	(10.6)		(12.4)
Recoveries of prior write-offs	5.3		6.9
Ending balance December 31	$	13.3	$	8.1

Sale of Accounts Receivable

Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell an undivided percentage ownership interest in their retail electric accounts receivable to independent outside investors. These sales are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets.  The Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable are summarized in the following table.

	December 31
	2021		2020
	(millions)
Evergy	$	319.0	$	360.0
Evergy Kansas Central	153.0		180.0
Evergy Metro	116.0		130.0

Each receivable sale facility expires in 2024. Evergy Kansas Central's facility allows for $185.0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and then $200.0 million from mid-June through mid-October. Evergy Metro's facility allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. Evergy Missouri West's facility allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through mid-November.

4. RATE MATTERS AND REGULATION

KCC Proceedings

Evergy Kansas Central 2021 Transmission Delivery Charge (TDC)

In April 2021, the KCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the FERC transmission formula rate (TFR). The new prices were effective in April 2021 and are expected to increase Evergy Kansas Central's annual retail revenues by $37.9 million when compared to 2020.

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Evergy Metro 2021 TDC

In April 2021, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May 2021 and are expected to decrease Evergy Metro's annual retail revenues by $2.4 million when compared to 2020.

Evergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP)

As part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to participate in an ERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to refund to customers 50% of annual earnings in excess of their authorized return on equity of 9.3% to the extent the excess earnings exceed the amount of annual bill credits that Evergy Kansas Central and Evergy Metro agreed to provide in connection with the merger that resulted in the formation of Evergy.

Evergy Kansas Central's and Evergy Metro's 2020 calculations of annual earnings did not result in a significant refund obligation. As of December 31, 2021, Evergy Kansas Central estimates its 2021 annual earnings will not result in a refund obligation. As of December 31, 2021, Evergy Metro estimates its 2021 annual earnings will result in a $2.0 million refund obligation. The final refund obligations for 2021 will be decided by the KCC and could vary from the current estimates.

Evergy Kansas Central and Evergy Metro February 2021 Winter Weather Event AAO

In February 2021, the KCC issued an emergency AAO directing all Kansas-jurisdictional natural gas and electric utilities, including Evergy Kansas Central and Evergy Metro, to defer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future rate proceedings.

As of December 31, 2021, Evergy Kansas Central had recognized a regulatory asset pursuant to the AAO of $121.5 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs. As of December 31, 2021, Evergy Metro's Kansas jurisdiction had recognized a regulatory liability of $39.5 million related to its increased wholesale revenues during the February 2021 winter weather event.

In July 2021, Evergy Kansas Central and Evergy Metro made a joint filing with the KCC regarding the timing and method of recovery or refund for costs and revenues deferred pursuant to the February 2021 winter weather event AAO. In the filing, Evergy Kansas Central and Evergy Metro requested to recover or refund, as appropriate, their deferred February 2021 winter weather event amounts to customers through their fuel recovery mechanisms over two years and one year, respectively, beginning in April 2022. As part of the filing, Evergy Metro also requested an approximately $6 million decrease to its February 2021 winter weather event refund to Kansas customers, which is not currently reflected in its regulatory liability for the February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms.

In January 2022, KCC staff filed their report and recommendation regarding the February 2021 winter weather event and the related costs and revenues deferred by Evergy Kansas Central and Evergy Metro as a result of the AAO granted by the KCC in February 2021. The report concluded that the costs incurred and revenues earned by Evergy Kansas Central and Evergy Metro during the February 2021 winter weather event were prudent. The KCC staff also recommended the following: (1) that Evergy Metro extend the time period of its refund to customers from one year to two years; (2) that the KCC reject the approximately $6 million reduction in refund to customers requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms and (3) that Evergy Metro and the other active parties in the case work to determine the appropriate level of carrying charges that should apply to the amounts deferred related to the February 2021 winter weather event.

A decision by the KCC regarding Evergy Kansas Central’s and Evergy Metro’s joint filing is expected in the first half of 2022.

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Lawrence Energy Center (LEC) Unit 4 Securitization

In April 2021, the state of Kansas passed the Utility Financing and Securitization Act (UFSA) which allows certain public utilities, including Evergy Kansas Central and Evergy Metro, to securitize utility assets in order to recover energy transition costs relating to the early retirement of certain generating assets. To recover the energy transition costs through securitization as allowed in the UFSA, a public utility must obtain a predetermination order from the KCC finding that the retirement of the subject generation facility is reasonable. Upon the receipt of a successful predetermination order, the public utility must then file an application with the KCC for a financing order to issue securitized bonds to recover the energy transition costs. The UFSA also allows the pursuit of securitization to help finance qualified extraordinary expenses, such as fuel costs incurred during extreme weather events.

In September 2021, Evergy Kansas Central filed a predetermination request with the KCC for the ratemaking principles and treatment related to its planned investment in approximately 190 MW of solar generation and the planned retirement of coal-fired LEC Unit 4 and related coal-handling facilities for LEC Units 4 and 5, both of which are expected to occur between December 2023 and the first half of 2024. In February 2022, Evergy Kansas Central withdrew its predetermination request with the KCC in order to finalize definitive documentation associated with the solar investment and to develop additional information to enable the KCC to evaluate its predetermination request. Evergy Kansas Central anticipates refiling its predetermination request, including this additional information, later in 2022.

If the KCC finds that Evergy Kansas Central's planned retirement of LEC Unit 4 and investment in 190 MW of solar generation is prudent as part of a predetermination request, Evergy Kansas Central then plans to file an application with the KCC for a financing order authorizing the issuance of securitized bonds to recover energy transition costs associated with the retirement of LEC Unit 4 and the related coal-handling facilities for LEC Units 4 and 5.

MPSC Proceedings

Evergy Metro 2022 Rate Case Proceeding

In January 2022, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of $43.9 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.19%. The request reflects increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Metro also requested an additional $3.8 million increase associated with rebasing fuel and purchased power expense as well as the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of its application with the MPSC.

An evidentiary hearing in the case is expected to occur in September 2022 and new rates are expected to be effective in December 2022.

Evergy Missouri West 2022 Rate Case Proceeding

In January 2022, Evergy Missouri West filed an application with the MPSC to request an increase to its retail revenues of $27.7 million before rebasing fuel and purchased power expense, with a return on equity of 10% and a rate-making equity ratio of 51.81%. The request reflects increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018. Evergy Missouri West also requested an additional $32.1 million increase associated with rebasing fuel and purchased power expense, the implementation of tracking mechanisms for both property tax expense and credit loss expense, the creation of a storm reserve, and the full return of and return on its unrecovered investment related to the 2018 retirement of Sibley Station as part of its application with the MPSC.

An evidentiary hearing in the case is expected to occur in September 2022 and new rates are expected to be effective in December 2022.

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Evergy Missouri West Other Proceedings

In December 2018, the Office of the Public Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed a petition with the MPSC requesting an AAO that would require Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes, and all other costs associated with Sibley Station following the station’s retirement in November 2018.

In October 2019, the MPSC granted OPC's and MECG's request for an AAO and required Evergy Missouri West to record a regulatory liability for the revenues discussed above for consideration in Evergy Missouri West's current rate case. Depending on the MPSC's decision in the current rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 2018 or, alternatively, could be required to make no refunds. As part of its current rate case, Evergy Missouri West is proposing to refund to customers the revenues collected from customers for non-fuel operations and maintenance costs and other costs associated with Sibley Station following the station's retirement but not the return on investment.

As a result of the MPSC order, Evergy has recorded a regulatory liability of $29.3 million as of December 31, 2021 for the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station since December 2018 that Evergy has determined is probable of refund. Evergy expects that it will continue to defer such amounts as collected from customers until new rates become effective in Evergy Missouri West's current rate case.

The accrual for this estimated amount does not include certain revenues collected related to Sibley Station that Evergy has determined to not be probable of refund in the current rate case based on the relevant facts and circumstances. Although Evergy has determined these additional revenues to not be probable of refund, the ultimate resolution of this matter in Evergy Missouri West's current rate case is uncertain and could result in an estimated loss of approximately $50 million when new rates are expected to become effective in December 2022. Evergy's regulatory liability for probable refunds as of December 31, 2021 and estimated loss in excess of the amount accrued represent estimates that could change significantly based on ongoing developments including decisions in other regulatory proceedings that establish precedent applicable to this matter and positions of parties on this issue in Evergy Missouri West's 2022 rate case.

Evergy Metro and Evergy Missouri West February 2021 Winter Weather Event AAO

In June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC that would allow Evergy Metro and Evergy Missouri West to defer to a regulatory asset or regulatory liability any extraordinary costs or revenues, including carrying costs, to provide electric service during the February 2021 winter weather event for consideration in future proceedings.

Evergy Metro and Evergy Missouri West have currently deferred substantially all of their fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their ability to recover or refund these amounts through their fuel recovery mechanisms, which allow for the recovery or refund of 95% of increases in fuel and purchased power costs, net of wholesale revenues, above the amount included in base rates to customers. This AAO request is intended to address the recovery or refund of the February 2021 winter weather event amounts separate from the normal fuel recovery mechanism process given the extraordinary nature of the February 2021 winter weather event and to help moderate customer bill impacts. As of December 31, 2021, Evergy Metro's Missouri jurisdiction had recognized a regulatory liability of $25.6 million related to its increased wholesale revenues during the February 2021 winter weather event. As of December 31, 2021, Evergy Missouri West had recognized a regulatory asset of $281.6 million related to its costs incurred during the February 2021 winter weather event, primarily consisting of increased fuel and purchased power costs.

In the AAO filing, Evergy Metro requested to refund its deferred February 2021 winter weather event amounts to customers through its fuel recovery mechanism over one year, beginning in April 2022. In the same AAO filing, Evergy Missouri West requested to exclude its deferred February 2021 winter weather event amounts from recovery through its fuel recovery mechanism and indicated its intent to recover them through issuing securitized bonds

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pursuant to the securitization legislation signed into law in Missouri in July 2021. As part of the filing, Evergy Metro also requested an approximately $5 million decrease to its February 2021 winter weather refund to Missouri customers, which is not currently reflected in its regulatory liability for the February 2021 winter weather event, for jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms and for the portion of net wholesale revenues not traditionally refundable because of the 5% sharing provision of its fuel recovery mechanism. Evergy Missouri West requested an approximately $15 million increase to its February 2021 winter weather event recovery from Missouri customers, which is not currently reflected in its regulatory asset for the February 2021 winter weather event, for the portion of net fuel and purchased power costs not traditionally recoverable because of the 5% sharing provision of its fuel recovery mechanism.

In September 2021, MPSC staff filed their recommendation regarding the February 2021 winter weather event and the related costs and revenues deferred by Evergy Metro and Evergy Missouri West. The MPSC staff recommended that the MPSC reject Evergy Metro’s AAO request, including the approximately $5 million reduction in refund to customers requested by Evergy Metro due to jurisdictional allocation differences in its Kansas and Missouri fuel recovery mechanisms, and refund the excess wholesale revenues from the February 2021 winter weather event to customers through its normal fuel recovery mechanism process. The MPSC staff recommended that the MPSC approve Evergy Missouri West’s AAO request, including the approximately $15 million of additional recovery requested related to the 5% sharing provision of its fuel recovery mechanism, but that the AAO deferral should not include carrying costs as they should be determined in a future ratemaking proceeding.

A decision by the MPSC regarding Evergy Metro’s and Evergy Missouri West’s joint request is expected in the first half of 2022.

FERC Proceedings

In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate is the most significant component in the retail rate calculation for Evergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs through the TDC.

Evergy Kansas Central TFR

In the most recent three years, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by approximately:

•$33.2 million increase effective in January 2022;

•$32.4 million increase effective in January 2021; and

•$6.8 million increase effective in January 2020.

Evergy Metro TFR

In the most recent three years, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:

•$18.1 million increase effective in January 2022;

•$3.9 million decrease effective in January 2021; and

•$1.7 million decrease effective in January 2020.

Regulatory Assets and Liabilities

The Evergy Companies have recorded assets and liabilities on their consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded if they were not regulated. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.

Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy Kansas Central's, Evergy Metro's and

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Evergy Missouri West's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to the Evergy Companies; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. The Evergy Companies continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to any or all of the Evergy Companies' operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets.

The Evergy Companies' regulatory assets and liabilities are detailed in the following tables.

	December 31
	2021						2020
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Regulatory Assets	(millions)
Pension and post-retirement costs	$	567.2	$	265.6	$	213.3	$	867.8	$	412.9	$	359.9
Debt reacquisition costs	94.4		86.7		6.7		98.9		91.3		6.8
Debt fair value adjustment	96.5		—		—		104.0		—		—
Asset retirement obligations fair value    adjustment	117.9		—		—		116.2		—		—
Depreciation	98.5		50.1		27.0		70.0		52.7		9.4
Cost of removal	257.5		141.0		90.2		183.4		125.7		57.7
Asset retirement obligations	119.3		52.3		49.1		170.8		55.0		84.0
Analog meter unrecovered investment	18.4		18.4		—		24.1		24.1		—
Treasury yield hedges	20.4		20.4		—		21.5		21.5		—
Iatan No. 1 and common facilities	6.5		—		2.7		6.9		—		2.8
Iatan No. 2 construction accounting costs	24.7		—		12.4		25.4		—		12.7
Kansas property tax surcharge	39.6		31.6		8.0		28.9		23.7		5.2
Disallowed plant costs	14.2		14.2		—		14.5		14.5		—
La Cygne environmental costs	11.2		9.0		2.2		12.4		10.1		2.3
Deferred customer programs	18.7		6.4		7.8		16.3		5.7		8.6
Fuel recovery mechanisms	202.5		120.8		19.8		26.2		1.2		17.7
February 2021 winter weather event	403.1		121.5		—		—		—		—
Solar rebates	20.2		—		—		25.9		—		1.5
Wolf Creek outage	20.4		10.2		10.2		10.0		5.0		5.0
Pension and other post-retirement benefit    non-service costs	65.6		23.0		29.6		49.8		12.8		23.4
Retired generation facilities	123.4		—		—		128.4		—		—
Merger transition costs	32.7		15.6		12.1		37.6		18.0		13.9
Other regulatory assets	42.3		24.1		5.9		35.4		22.1		4.6
Total	2,415.2		1,010.9		497.0		2,074.4		896.3		615.5
Less: current portion	(424.1)		(257.3)		(86.3)		(206.2)		(96.2)		(82.0)
Total noncurrent regulatory assets	$	1,991.1	$	753.6	$	410.7	$	1,868.2	$	800.1	$	533.5

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	December 31
	2021						2020
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Regulatory Liabilities	(millions)
Taxes refundable through future rates	$	1,969.5	$	1,143.7	$	616.1	$	2,055.7	$	1,184.5	$	650.2
Deferred regulatory gain from sale leaseback	42.6		42.6		—		48.1		48.1		—
Emission allowances	42.1		—		42.1		46.1		—		46.1
Nuclear decommissioning	400.1		175.7		224.4		319.7		138.2		181.5
Pension and post-retirement costs	44.4		23.2		15.9		50.8		31.4		13.1
Jurisdictional allowance for funds used during construction	27.5		25.8		1.7		28.7		27.0		1.7
La Cygne leasehold dismantling costs	29.6		29.6		—		29.6		29.6		—
Cost of removal	—		—		—		4.4		—		—
Kansas tax credits	16.7		16.7		—		—		—		—
Purchase power agreement	5.8		5.8		—		6.3		6.3		—
Fuel recovery mechanisms	6.5		—		6.5		1.3		—		—
February 2021 winter weather event	65.1		—		65.1		—		—		—
Sibley AAO	29.3		—		—		18.4		—		—
Other regulatory liabilities	96.5		19.1		37.0		55.8		7.8		14.8
Total	2,775.7		1,482.2		1,008.8		2,664.9		1,472.9		907.4
Less: current portion	(70.7)		(12.8)		(54.6)		(26.1)		(11.9)		(8.0)
Total noncurrent regulatory liabilities	$	2,705.0	$	1,469.4	$	954.2	$	2,638.8	$	1,461.0	$	899.4

The following summarizes the nature and period of recovery for each of the regulatory assets listed in the table above.

Pension and post-retirement costs: Represents unrecognized gains and losses and prior service costs that will be recognized in future net periodic pension and post-retirement costs, pension settlements amortized over various periods and financial and regulatory accounting method differences that will be eliminated over the life of the pension plans. Of these amounts, $494.6 million, $265.6 million and $179.0 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, are not included in rate base and are amortized over various periods. Additionally, $219.7 million, $(11.6) million and $123.3 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, represent differences between pension and post-retirement costs under GAAP and pension and post-retirement costs for ratemaking that will be recovered or refunded in future rates and differences in accumulated unrecognized gains and losses and prior service costs between Evergy and Evergy Metro due to Evergy Metro electing not to apply "push-down accounting" related to the Great Plains Energy and Evergy Kansas Central merger.

Debt reacquisition costs: Includes costs incurred to reacquire and refinance debt. These costs are amortized over the term of the new debt or the remaining lives of the old debt issuances if no new debt was issued and are not included in rate base.

Debt fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West long-term debt at fair value in connection with the Great Plains Energy and Evergy Kansas Central merger. Amount is amortized over the life of the related debt and is not included in rate base.

Asset retirement obligations fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West AROs at fair value in connection with the Great

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Plains Energy and Evergy Kansas Central merger. Amount is amortized over the life of the related plant and is not included in rate base.

Depreciation: Represents the difference between regulatory depreciation expense and depreciation expense recorded for financial reporting purposes. These assets are included in rate base and the difference is amortized over the life of the related plant.

Cost of removal: Represents amounts spent, but not yet collected, to dispose of plant assets. This asset will decrease as removal costs are collected in rates and is included in rate base.

Asset retirement obligations: Represents amounts associated with AROs as discussed further in Note 6. These amounts are recovered over the life of the related plant and are not included in rate base.

Analog meter unrecovered investment: Represents the deferral of unrecovered investment of retired analog meters. Of this amount, $10.1 million is not included in rate base for Evergy and Evergy Kansas Central and is being amortized over a five-year period.

Treasury yield hedges: Represents the effective portion of treasury yield hedge transactions. Amortization of this amount will be included in interest expense over the term of the related debt and is not included in rate base.

Iatan No. 1 and common facilities: Represents depreciation and carrying costs related to Iatan No. 1 and common facilities. These costs are included in rate base and amortized over various periods.

Iatan No. 2 construction accounting costs: Represents the construction accounting costs related to Iatan No. 2. These costs are included in rate base and amortized through 2059.

Kansas property tax surcharge: Represents actual costs incurred for property taxes in excess of amounts collected in revenues. These costs are expected to be recovered over a one-year period and are not included in rate base.

Disallowed plant costs: The KCC originally disallowed certain costs related to the Wolf Creek plant. In 1987, the KCC revised its original conclusion and provided for recovery of an indirect disallowance with no return on investment. This regulatory asset represents the present value of the future expected revenues to be provided to recover these costs, net of the amounts amortized.

La Cygne environmental costs: Represents the deferral of depreciation and amortization expense and associated carrying charges related to the La Cygne Station environmental project. This amount will be amortized over the life of the related asset and is included in rate base.

Deferred customer programs: Represents costs related to various energy efficiency programs that have been accumulated and deferred for future recovery. Of these amounts, $12.3 million for Evergy and $7.8 million for Evergy Metro are not included in rate base and are amortized over various periods.

Fuel recovery mechanisms: Represents the actual cost of fuel consumed in producing electricity and the cost of purchased power in excess of the amounts collected from customers. This difference is expected to be recovered over a one-year period and is not included in rate base.

February 2021 winter weather event: Represents deferred extraordinary fuel and purchased power costs incurred to provide electric service as a result of the February 2021 winter weather event. These amounts are not included in rate base.

Solar rebates: Represents costs associated with solar rebates provided to retail electric customers. These amounts are not included in rate base and are amortized over various periods.

Wolf Creek outage: Represents deferred expenses associated with Wolf Creek's scheduled refueling and maintenance outages. These expenses are amortized during the period between planned outages and are not included in rate base.

Pension and other post-retirement benefit non-service costs: Represents the non-service component of pension and post-retirement net benefit costs that are capitalized as authorized by regulators. The amounts are included in rate base and are recovered over the life of the related asset.

Retired generation facilities: Represents amounts to be recovered for facilities that have been retired and are probable of recovery.

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Merger transition costs: Represents recoverable transition costs related to the merger. The amounts are not included in rate base and are recovered from retail customers through 2028.

Other regulatory assets: Includes various regulatory assets that individually are small in relation to the total regulatory asset balance. These amounts have various recovery periods and are not included in rate base.

The following summarizes the nature and period of amortization for each of the regulatory liabilities listed in the table above.

Taxes refundable through future rates: Represents the obligation to return to customers income taxes recovered in earlier periods when corporate income tax rates were higher than current income tax rates. A large portion of this amount is related to depreciation and will be returned to customers over the life of the applicable property.

Deferred regulatory gain from sale leaseback: Represents the gain Evergy Kansas South recorded on the 1987 sale and leaseback of its 50% interest in La Cygne Unit 2. The gain is amortized over the term of the lease.

Emission allowances: Represents deferred gains related to the sale of emission allowances to be returned to customers.

Nuclear decommissioning: Represents the difference between the fair value of the assets held in the nuclear decommissioning trust and the amount recorded for the accumulated accretion and depreciation expense associated with the asset retirement obligation related to Wolf Creek.

Pension and post-retirement costs: Includes pension and post-retirement benefit obligations and expense recognized in setting prices in excess of actual pension and post-retirement expense.

Jurisdictional allowance for funds used during construction: Represents AFUDC that is accrued subsequent to the time the associated construction charges are included in prices and prior to the time the related assets are placed in service. The AFUDC is amortized to depreciation expense over the useful life of the asset that is placed in service.

La Cygne leasehold dismantling costs: Represents amounts collected but not yet spent on the contractual obligation to dismantle a portion of La Cygne Unit 2. The obligation will be discharged as the unit is dismantled.

Cost of removal: Represents amount collected, but not yet spent, to dispose of plant assets. This liability will be discharged as removal costs are incurred.

Kansas tax credits: Represents Kansas tax credits on investment in utility plant. Amounts will be credited to customers subsequent to the realization of the credits over the remaining lives of the utility plant giving rise to the tax credits.

Purchase power agreement: Represents the amount included in retail electric rates from customers in excess of costs incurred under purchase power agreements. Amounts are amortized over a five-year period.

Fuel recovery mechanisms: Represents the amount collected from customers in excess of the actual cost of fuel consumed in producing electricity and the cost of purchased power. This difference is expected to be refunded over a one-year period and is not included in rate base.

February 2021 winter weather event: Represents the deferral of increased wholesale revenues earned during the February 2021 winter weather event.

Sibley AAO: Represents the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station that Evergy has determined is probable of refund. These amounts were recorded in connection with an AAO granted by the MPSC in October 2019 and deferred amounts will be considered by the MPSC in Evergy Missouri West's 2022 rate case.

Other regulatory liabilities: Includes various regulatory liabilities that individually are relatively small in relation to the total regulatory liability balance. These amounts will be credited over various periods.

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5. GOODWILL

GAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2021. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.

6. ASSET RETIREMENT OBLIGATIONS

AROs associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes in the estimated fair values of the liabilities are recognized when known.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). In addition, Evergy Kansas Central and Evergy Metro have AROs related to decommissioning Wolf Creek and the retirement of wind generation facilities.

The MPSC and KCC require the owners of Wolf Creek, including Evergy Kansas South and Evergy Metro with their respective 47% ownership shares, to submit an updated decommissioning cost study every three years. The most recent study was submitted to the MPSC and KCC in September 2020. As a result of changes in estimates related to the study, Evergy, Evergy Kansas Central and Evergy Metro recorded increases to their AROs to decommission Wolf Creek of $259.1 million, $140.7 million and $118.4 million, respectively, in 2020.

The following table summarizes the change in the Evergy Companies' AROs for the periods ending December 31, 2021 and 2020.

	Evergy				Evergy Kansas Central				Evergy Metro
	2021		2020		2021		2020		2021		2020
	(millions)
Beginning balance January 1	$	941.9	$	674.1	$	427.2	$	272.9	$	378.9	$	253.6
Revision in timing and/or estimates	13.5		249.3		3.8		136.8		9.5		118.4
Settlements	(38.7)		(18.4)		(10.6)		(2.2)		(24.4)		(7.5)
Accretion	43.4		36.9		23.5		19.7		17.0		14.4
Ending balance	$	960.1	$	941.9	$	443.9	$	427.2	$	381.0	$	378.9
Less: current portion	(19.5)		(40.2)		(7.3)		(11.2)		(11.0)		(21.2)
Total noncurrent asset    retirement obligation	$	940.6	$	901.7	$	436.6	$	416.0	$	370.0	$	357.7

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7. PROPERTY, PLANT AND EQUIPMENT

The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.

December 31, 2021	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	30,289.9		$	14,686.3		$	11,656.9
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(11,515.5)			(5,590.8)			(4,733.7)
Plant in service		19,498.7			9,819.8			6,923.2
Construction work in progress		1,350.6			652.2			475.3
Nuclear fuel, net		152.5			76.1			76.4
Plant to be retired, net (a)		0.8			0.8			—
Net property, plant and equipment		$	21,002.6		$	10,548.9		$	7,474.9
December 31, 2020	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	28,914.8		$	14,095.1		$	11,161.8
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(10,998.4)			(5,293.5)			(4,532.7)
Plant in service		18,640.7			9,525.9			6,629.1
Construction work in progress		1,153.5			589.1			433.9
Nuclear fuel, net		155.9			77.7			78.2
Plant to be retired, net (a)		0.9			0.9			—
Net property, plant and equipment		$	19,951.0		$	10,193.6		$	7,141.2

(a) As of December 31, 2021 and 2020, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.

The following table summarizes the property, plant and equipment of VIEs for Evergy and Evergy Kansas Central.

		December 31
	2021			2020
		(millions)
Electric plant of VIEs		$	392.1		$	392.1
Accumulated depreciation of VIEs		(244.3)			(237.2)
Net property, plant and equipment of VIEs		$	147.8		$	154.9

Depreciation Expense

The Evergy Companies' depreciation expense is detailed in the following table.

	2021		2020		2019
	(millions)
Evergy (a)	$	813.6	$	804.7	$	786.3
Evergy Kansas Central (a)	450.3		435.1		425.8
Evergy Metro	255.9		269.5		262.7

(a) Approximately $7.1 million of depreciation expense in each of 2021, 2020 and 2019 was attributable to property, plant and equipment of VIEs.

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8. JOINTLY-OWNED ELECTRIC UTILITY PLANTS

Evergy's, Evergy Kansas Central's and Evergy Metro's share of jointly-owned electric utility plants at December 31, 2021, are detailed in the following tables.

Evergy
	Wolf Creek Unit			La Cygne Units (a)			Iatan No. 1 Unit			Iatan No. 2 Unit			Iatan Common			Jeffrey Energy Center			State Line
	(millions, except MW amounts)
Evergy's share		94%			100%			88%			73%			79%			100%			40%
Electric plant in    service		$	4,078.7		$	2,219.1		$	765.7		$	1,405.9		$	503.6		$	2,521.1		$	115.0
Accumulated depreciation		2,040.2			816.0			251.9			480.3			122.2			1,036.7			85.2
Nuclear fuel, net		152.5			—			—			—			—			—			—
Construction work in progress		187.4			52.6			4.4			8.1			7.4			48.7			25.5
2022 accredited    capacity-MWs		1,108			1,426			618			640			n/a			2,191			200

(a)    The VIE consolidated by Evergy and Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 18 for additional information.

Evergy Kansas Central
	Wolf Creek Unit			La Cygne Units (a)			Jeffrey Energy Center		State Line
	(millions, except MW amounts)
Evergy Kansas Central's share		47%			50%		92%			40%
Electric plant in service		$	2,019.8		$	1,047.4	$	2,307.6		$	115.0
Accumulated depreciation		992.2			475.2		944.5			85.2
Nuclear fuel, net		76.1			—		—			—
Construction work in progress		83.6			29.0		44.9			25.5
2022 accredited capacity-MWs		554			713		2,016			200

(a)    The VIE consolidated by Evergy and Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 18 for additional information.

Evergy Metro
	Wolf Creek Unit			La Cygne Units			Iatan No. 1 Unit			Iatan No. 2 Unit			Iatan Common
	(millions, except MW amounts)
Evergy Metro's share		47%			50%			70%			55%			61%
Electric plant in service		$	2,058.9		$	1,171.7		$	594.8		$	1,066.4		$	399.6
Accumulated depreciation		1,048.0			340.8			205.3			412.5			103.3
Nuclear fuel, net		76.4			—			—			—			—
Construction work in progress		103.8			23.6			3.6			6.1			5.5
2022 accredited capacity-MWs		554			713			492			482			NA

Each owner must fund its own portion of the plant's operating expenses and capital expenditures. The Evergy Companies' share of direct expenses are included in the appropriate operating expense classifications in Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements.

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9. PENSION PLANS AND POST-RETIREMENT BENEFITS

Evergy and certain of its subsidiaries maintain, and Evergy Kansas Central and Evergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of Evergy Kansas Central's and Evergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers. Evergy is also responsible for its indirect 94% ownership share of Wolf Creek's defined benefit plans, consisting of Evergy Kansas South's and Evergy Metro's respective 47% ownership shares.

For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.

Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees of Evergy Kansas Central and Evergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans.

The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability.  This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.

For 2021, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement charges of $34.3 million, $25.6 million and $13.7 million, respectively. For 2020, Evergy and Evergy Metro recorded pension settlement charges of $11.2 million and $14.3 million, respectively. For 2019, Evergy and Evergy Metro recorded pension settlement charges of $15.6 million and $23.0 million, respectively. These settlement charges were the result of accelerated pension distributions as a result of employee retirements and annuity purchases for certain plan participants in 2021. Evergy, Evergy Kansas Central and Evergy Metro deferred substantially all of the charges to a regulatory asset and expect to recover these amounts over future periods pursuant to regulatory agreements.

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The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants.

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Change in projected benefit obligation (PBO)	(millions)
PBO at January 1, 2021	$	2,901.1	$	1,429.6	$	1,446.5	$	280.4	$	146.8	$	133.6
Service cost	82.6		29.1		53.5		3.3		1.7		1.6
Interest cost	84.2		41.0		42.5		7.8		4.0		3.8
Contribution by participants	—		—		—		9.0		1.4		7.6
Actuarial gain	(119.0)		(50.0)		(68.3)		(17.2)		(9.4)		(7.8)
Benefits paid	(93.5)		(54.8)		(37.5)		(24.9)		(10.6)		(14.3)
Settlements	(284.0)		(126.2)		(157.8)		—		—		—
Other	(9.7)		(4.3)		(5.4)		—		—		—
PBO at December 31, 2021	$	2,561.7	$	1,264.4	$	1,273.5	$	258.4	$	133.9	$	124.5
Change in plan assets
Fair value of plan assets at January 1, 2021	$	1,799.1	$	887.0	$	912.1	$	248.3	$	125.8	$	122.5
Actual return on plan assets	145.5		83.4		62.1		5.2		6.5		(1.3)
Contributions by employer and participants	148.7		46.5		102.2		11.8		1.7		10.1
Benefits paid	(89.4)		(52.3)		(37.1)		(23.0)		(10.0)		(13.0)
Settlements	(279.5)		(124.6)		(154.9)		—		—		—
Other	(9.7)		(4.3)		(5.4)		—		—		—
Fair value of plan assets at December 31, 2021	$	1,714.7	$	835.7	$	879.0	$	242.3	$	124.0	$	118.3
Funded status at December 31, 2021	$	(847.0)	$	(428.7)	$	(394.5)	$	(16.1)	$	(9.9)	$	(6.2)

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Amounts recognized in the consolidated balance sheets					(millions)
Non-current asset	$	—	$	—	$	—	$	21.5	$	—	$	21.5
Current pension and other post-retirement liability	(4.4)		(2.4)		(0.7)		(1.1)		(0.6)		(0.6)
Noncurrent pension liability and other post-retirement liability	(842.6)		(426.3)		(393.8)		(36.5)		(9.3)		(27.1)
Net amount recognized before regulatory treatment	(847.0)		(428.7)		(394.5)		(16.1)		(9.9)		(6.2)
Accumulated OCI or regulatory asset/liability	317.2		263.6		84.6		(11.4)		(9.6)		(10.5)
Net amount recognized at December 31, 2021	$	(529.8)	$	(165.1)	$	(309.9)	$	(27.5)	$	(19.5)	$	(16.7)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss	$	302.4	$	246.6	$	86.4	$	(12.6)	$	(10.5)	$	(3.8)
Prior service cost	14.8		17.0		(1.8)		1.2		0.9		(6.7)
Net amount recognized at December 31, 2021	$	317.2	$	263.6	$	84.6	$	(11.4)	$	(9.6)	$	(10.5)

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	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Change in projected benefit obligation (PBO)	(millions)
PBO at January 1, 2020	$	2,718.2	$	1,323.4	$	1,371.4	$	264.3	$	138.7	$	125.6
Service cost	78.9		27.1		51.8		2.7		1.1		1.6
Interest cost	96.8		47.0		49.1		9.2		4.8		4.4
Contribution by participants	—		—		—		9.3		1.8		7.5
Plan amendments	4.2		8.1		(3.9)		1.0		0.5		0.5
Actuarial loss	273.9		127.0		144.8		19.6		11.0		8.6
Benefits paid	(202.5)		(102.3)		(99.0)		(25.7)		(11.1)		(14.6)
Settlements	(62.9)		—		(62.9)		—		—		—
Other	(5.5)		(0.7)		(4.8)		—		—		—
PBO at December 31, 2020	$	2,901.1	$	1,429.6	$	1,446.5	$	280.4	$	146.8	$	133.6
Change in plan assets
Fair value of plan assets at January 1, 2020	$	1,732.8	$	842.1	$	890.7	$	239.9	$	120.5	$	119.4
Actual return on plan assets	209.9		99.7		110.2		20.7		13.7		7.0
Contributions by employer and participants	123.4		45.8		77.6		11.7		2.1		9.6
Benefits paid	(198.6)		(99.9)		(98.7)		(24.0)		(10.5)		(13.5)
Settlements	(62.9)		—		(62.9)		—		—		—
Other	(5.5)		(0.7)		(4.8)		—		—		—
Fair value of plan assets at December 31, 2020	$	1,799.1	$	887.0	$	912.1	$	248.3	$	125.8	$	122.5
Funded status at December 31, 2020	$	(1,102.0)	$	(542.6)	$	(534.4)	$	(32.1)	$	(21.0)	$	(11.1)

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Amounts recognized in the consolidated balance sheets					(millions)
Non-current asset	$	—	$	—	$	—	$	21.3	$	—	$	21.3
Current pension and other post-retirement liability	(4.4)		(2.5)		(0.8)		(1.6)		(0.8)		(0.9)
Noncurrent pension liability and other post-    retirement liability	(1,097.6)		(540.1)		(533.6)		(51.8)		(20.2)		(31.5)
Net amount recognized before regulatory treatment	(1,102.0)		(542.6)		(534.4)		(32.1)		(21.0)		(11.1)
Accumulated OCI or regulatory asset/liability	566.9		408.0		216.9		4.0		1.0		(7.7)
Net amount recognized at December 31, 2020	$	(535.1)	$	(134.6)	$	(317.5)	$	(28.1)	$	(20.0)	$	(18.8)
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:
Actuarial (gain) loss	$	551.8	$	388.9	$	218.6	$	2.2	$	(0.3)	$	—
Prior service cost	15.1		19.1		(1.7)		1.8		1.3		(7.7)
Net amount recognized at December 31, 2020	$	566.9	$	408.0	$	216.9	$	4.0	$	1.0	$	(7.7)

Actuarial gains for the Evergy Companies' pension benefit plans for 2021 were primarily driven by an increase in the discount rate used to measure the benefit obligation as a result of higher market interest rates. See the weighted average assumptions used to determine the benefit obligations in this Note 9 for further information. Actuarial losses for the Evergy Companies' pension benefit plans for 2020 were primarily driven by a decrease in the discount rate used to measure the benefit obligation of approximately 70 basis points as a result of lower market interest rates.

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As of December 31, 2021 and 2020, Evergy's pension benefits include non-qualified benefit obligations of $49.2 million and $52.1 million, respectively, which are funded by trusts containing assets of $44.2 million and $46.3 million, respectively. As of December 31, 2021 and 2020, Evergy Kansas Central's pension benefits include non-qualified benefit obligations of $25.4 million and $27.0 million, respectively, which are funded by trusts containing assets of $31.7 million and $32.7 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 13 for more information on these amounts.

	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2021	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	82.6	$	29.1	$	53.5	$	3.3	$	1.7	$	1.6
Interest cost	84.2		41.0		42.5		7.8		4.0		3.8
Expected return on plan assets	(103.5)		(52.8)		(55.7)		(8.9)		(6.3)		(2.6)
Prior service cost	2.0		2.1		—		0.5		0.5		(1.0)
Recognized net actuarial (gain) loss	54.1		36.0		43.8		1.4		0.6		(0.1)
Settlement and special termination benefits	34.3		25.6		13.7		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	153.7		81.0		97.8		4.1		0.5		1.7
Regulatory adjustment	17.3		(13.1)		4.2		(4.8)		(3.3)		0.4
Intercompany allocations	n/a		3.2		(25.9)		n/a		—		(0.4)
Net periodic benefit costs (income)	171.0		71.1		76.1		(0.7)		(2.8)		1.7
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net gain	(195.3)		(106.3)		(88.4)		(13.6)		(9.6)		(3.9)
Amortization of gain (loss)	(52.4)		(36.0)		(43.9)		(1.3)		(0.5)		0.1
Amortization of prior service cost	(2.0)		(2.1)		—		(0.5)		(0.5)		1.0
Total recognized in OCI or regulatory asset/liability	(249.7)		(144.4)		(132.3)		(15.4)		(10.6)		(2.8)
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	(78.7)	$	(73.3)	$	(56.2)	$	(16.1)	$	(13.4)	$	(1.1)

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	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	78.9	$	27.1	$	51.8	$	2.7	$	1.1	$	1.6
Interest cost	96.8		47.0		49.1		9.2		4.8		4.4
Expected return on plan assets	(105.6)		(53.1)		(54.7)		(9.3)		(6.6)		(2.7)
Prior service cost	1.8		1.6		0.8		0.5		0.5		—
Recognized net actuarial loss	46.4		33.9		45.7		0.2		—		(0.6)
Settlement and special termination benefits	11.2		—		14.3		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	129.5		56.5		107.0		3.3		(0.2)		2.7
Regulatory adjustment	29.6		5.9		(11.6)		(4.0)		(3.0)		(0.2)
Intercompany allocations	n/a		(0.2)		(22.6)		n/a		0.1		(0.3)
Net periodic benefit costs (income)	159.1		62.2		72.8		(0.7)		(3.1)		2.2
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net loss	169.7		80.4		89.3		8.2		3.9		4.3
Amortization of gain (loss)	(59.2)		(33.8)		(60.0)		(0.2)		—		0.6
Prior service cost	4.1		8.1		(3.9)		0.9		0.5		0.4
Amortization of prior service cost	(1.8)		(1.6)		(0.8)		(0.5)		(0.5)		—
Total recognized in OCI or regulatory asset/liability	112.8		53.1		24.6		8.4		3.9		5.3
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	271.9	$	115.3	$	97.4	$	7.7	$	0.8	$	7.5

	Pension Benefits						Post-Retirement Benefits
Year Ended December 31, 2019	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Components of net periodic benefit costs	(millions)
Service cost	$	79.1	$	29.0	$	50.1	$	2.5	$	1.1	$	1.4
Interest cost	108.0		53.7		53.3		10.5		5.6		4.9
Expected return on plan assets	(106.3)		(54.8)		(48.9)		(10.0)		(6.7)		(3.3)
Prior service cost	1.9		1.7		0.9		0.5		0.5		—
Recognized net actuarial (gain) loss	33.0		25.5		49.8		(1.2)		(0.6)		(1.4)
Settlement and special termination benefits	15.6		—		23.0		—		—		—
Net periodic benefit costs before regulatory adjustment and intercompany allocations	131.3		55.1		128.2		2.3		(0.1)		1.6
Regulatory adjustment	37.4		3.0		(19.2)		(3.4)		(3.0)		0.4
Intercompany allocations	n/a		—		(34.4)		n/a		—		(0.4)
Net periodic benefit costs (income)	168.7		58.1		74.6		(1.1)		(3.1)		1.6
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities
Current year net (gain) loss	84.7		44.6		35.9		0.9		(3.8)		4.7
Amortization of gain (loss)	(48.6)		(25.5)		(72.8)		1.2		0.6		1.4
Amortization of prior service cost	(1.9)		(1.7)		(0.9)		(0.5)		(0.5)		—
Total recognized in OCI or regulatory asset/liability	34.2		17.4		(37.8)		1.6		(3.7)		6.1
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability	$	202.9	$	75.5	$	36.8	$	0.5	$	(6.8)	$	7.7

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For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies amortize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. Evergy and Evergy Kansas Central amortize the net actuarial (gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor. Evergy Metro amortizes the net actuarial (gain) loss on a rolling five-year average basis.

Pension and other post-retirement benefit plans with the PBO, accumulated benefit obligation (ABO) or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following tables.

December 31, 2021	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
ABO for all defined benefit pension plans	$	2,229.1	$	1,124.2	$	1,081.1
Pension plans with the PBO in excess of plan assets
Projected benefit obligation	$	2,561.7	$	1,264.4	$	1,273.5
Fair value of plan assets	1,714.7		835.7		879.0
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation	$	2,229.1	$	1,124.2	$	1,081.1
Fair value of plan assets	1,714.7		835.7		879.0
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation	$	258.4	$	133.9	$	124.5
Fair value of plan assets	242.3		124.0		118.3

December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
ABO for all defined benefit pension plans	$	2,534.1	$	1,281.6	$	1,227.4
Pension plans with the PBO in excess of plan assets
Projected benefit obligation	$	2,901.1	$	1,429.6	$	1,446.5
Fair value of plan assets	1,799.1		887.0		912.1
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation	$	2,534.1	$	1,281.6	$	1,227.4
Fair value of plan assets	1,799.1		887.0		912.1
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation	$	280.4	$	146.8	$	133.6
Fair value of plan assets	248.3		125.8		122.5

The expected long-term rate of return on plan assets represents the Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for current and planned asset classes in the plans' investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.

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The following tables provide the weighted-average assumptions used to determine benefit obligations and net costs for the Evergy Companies' pension and post-retirement benefit plans.

Weighted-average assumptions used to determine the benefit obligation at December 31, 2021	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	3.10	%	3.10	%	3.11	%	3.12	%	3.11	%	3.13	%
Rate of compensation increase	3.75	%	3.77	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.13	%	4.00	%	4.45	%	n/a		n/a		n/a
Weighted-average assumptions used to determine the benefit obligation at December 31, 2020	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	2.95	%	2.93	%	2.97	%	2.84	%	2.80	%	2.88	%
Rate of compensation increase	3.71	%	3.76	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.12	%	4.00	%	4.46	%	n/a		n/a		n/a

Weighted-average assumptions used to determine net costs for the year ended December 31, 2021	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	2.95	%	2.93	%	2.97	%	2.84	%	2.80	%	2.88	%
Expected long-term return on plan assets	6.63	%	6.70	%	6.57	%	3.93	%	5.55	%	2.27	%
Rate of compensation increase	3.71	%	3.78	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.12	%	4.00	%	4.46	%	n/a		n/a		n/a
Weighted-average assumptions used to determine net costs for the year ended December 31, 2020	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Discount rate	3.62	%	3.61	%	3.64	%	3.56	%	3.54	%	3.58	%
Expected long-term return on plan assets	6.63	%	6.70	%	6.56	%	4.19	%	6.00	%	2.37	%
Rate of compensation increase	3.74	%	3.75	%	3.71	%	3.75	%	n/a		3.75	%
Interest crediting rate for cash balance plans	4.32	%	4.21	%	4.50	%	n/a		n/a		n/a

Evergy expects to contribute $92.9 million to the pension plans in 2022 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $30.6 million is expected to be paid by Evergy Kansas Central and $62.3 million is expected to be paid by Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Also in 2022, Evergy expects to contribute $2.2 million to the post-retirement benefit plans, of which $0.5 million is expected to be paid by Evergy Kansas Central and $1.7 million is expected to be paid by Evergy Metro.

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The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2031.

	Pension Benefits						Post-Retirement Benefits
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
2022	$	159.5	$	80.8	$	77.5	$	16.1	$	9.2	$	6.9
2023	160.4		79.6		79.5		15.6		9.0		6.7
2024	163.8		80.6		81.7		15.1		8.5		6.6
2025	168.1		81.3		85.3		14.7		8.2		6.5
2026	173.5		83.2		88.8		14.3		8.0		6.4
2027-2031	862.9		399.5		455.7		68.5		37.2		31.2

As of December 31, 2021, Evergy Kansas Central and Evergy Metro maintained a master trust for their non-union and Evergy Kansas Central's union pension benefits and a separate trust for Evergy Metro's union pension benefits. Evergy Kansas Central and Evergy Metro maintained separate trusts for their post-retirement benefits as of December 31,2021. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.

The primary objective of Evergy Kansas Central's and Evergy Metro's pension plans is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objectives of the plans are to minimize funding deficiencies and maintain the plans' ability to pay all benefit and expense obligations when due.

The primary objective of Evergy Kansas Central's and Evergy Metro's post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return.

The investment strategies of both the Evergy Kansas Central and Evergy Metro pension and post-retirement plans support the above objectives of the plans. The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Evergy Kansas Central and Evergy Metro pension and other post-retirement plan assets.

	Pension Benefits		Post-Retirement Benefits
	Evergy Kansas Central	Evergy Metro	Evergy Kansas Central	Evergy Metro
Domestic equities	26%	26%	26%	15%
International equities	20%	19%	18%	8%
Bonds	39%	37%	51%	68%
Mortgage & asset backed securities	—%	—%	—%	6%
Real estate investments	4%	7%	—%	—%
Other investments	11%	11%	5%	3%

Fair Value Measurements

Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 13. The following are descriptions of the valuation methods of the primary fair value measurements disclosed below.

Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the net asset value (NAV) per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.

119

International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.

Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy.

Corporate bonds - consists of individually held, primarily domestic, corporate bonds that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2.

U.S. Treasury and agency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasury securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2.

Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2.

Real estate investments - consists of traded real estate investment trusts valued at the closing price reported on the major market on which the trusts are traded and are categorized as Level 1 and institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy.

Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as Level 1.

Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy.

Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy.

Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as Level 1.

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The fair values of the Evergy Companies' pension plan assets at December 31, 2021 and 2020, by asset category are in the following tables.

				Fair Value Measurements Using
Description	December 31 2021			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Pension Plans
Domestic equities		$	209.9		$	177.3		$	—		$	—		$	32.6
International equities		167.4			167.4			—			—			—
Bond funds		330.4			330.4			—			—			—
Real estate investments		28.1			—			—			—			28.1
Combination debt/equity/other fund		42.7			42.7			—			—			—
Alternative investment funds		44.1			—			—			—			44.1
Short-term investments		13.1			—			—			—			13.1
Total		$	835.7		$	717.8		$	—		$	—		$	117.9
Evergy Metro Pension Plans
Domestic equities		$	203.0		$	179.5		$	—		$	—		$	23.5
International equities		193.1			193.1			—			—			—
Bond funds		260.6			260.6			—			—			—
Corporate bonds		27.1			—			27.1			—			—
U.S. Treasury and agency bonds		14.5			4.7			9.8			—			—
Mortgage and asset backed securities		4.3			—			4.3			—			—
Real estate investments		55.9			—			—			—			55.9
Combination debt/equity/other fund		46.2			46.2			—			—			—
Alternative investment funds		47.5			—			—			—			47.5
Cash and cash equivalents		14.1			14.1			—			—			—
Short-term investments		9.5			—			—			—			9.5
Other		3.2			—			3.2			—			—
Total		$	879.0		$	698.2		$	44.4		$	—		$	136.4

121

				Fair Value Measurements Using
Description	December 31 2020			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Pension Plans
Domestic equities		$	248.5		$	151.3		$	—		$	—		$	97.2
International equities		171.2			103.8			—			—			67.4
Bond funds		281.2			230.7			—			—			50.5
Real estate investments		46.7			—			—			—			46.7
Combination debt/equity/other fund		30.4			30.4			—			—			—
Alternative investment funds		83.6			—			—			—			83.6
Short-term investments		25.4			—			—			—			25.4
Total		$	887.0		$	516.2		$	—		$	—		$	370.8
Evergy Metro Pension Plans
Domestic equities		$	247.4		$	191.9		$	—		$	—		$	55.5
International equities		220.8			153.4			—			—			67.4
Bond funds		78.1			21.1			—			—			57.0
Corporate bonds		133.6			—			133.6			—			—
U.S. Treasury and agency bonds		73.8			61.5			12.3			—			—
Mortgage and asset backed securities		5.0			—			5.0			—			—
Real estate investments		40.2			1.6			—			—			38.6
Combination debt/equity/other fund		15.6			15.6			—			—			—
Alternative investment funds		39.7			—			—			—			39.7
Cash and cash equivalents		57.3			57.3			—			—			—
Short-term investments		1.4			—			—			—			1.4
Other		(0.8)			—			(0.8)			—			—
Total		$	912.1		$	502.4		$	150.1		$	—		$	259.6

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The fair values of the Evergy Companies' post-retirement plan assets at December 31, 2021 and 2020, by asset category are in the following tables.

				Fair Value Measurements Using
Description	December 31 2021			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities		$	32.5		$	32.5		$	—		$	—		$	—
International equities		22.1			22.1			—			—			—
Bond funds		62.3			62.3			—			—			—
Combination debt/equity/other fund		6.1			6.1			—			—			—
Short-term investments		1.0			—			—			—			1.0
Total		$	124.0		$	123.0		$	—		$	—		$	1.0
Evergy Metro Post-Retirement Benefit Plans
Domestic equities		$	20.0		$	20.0		$	—		$	—		$	—
International equities		12.3			12.3			—			—			—
Bond funds		50.2			50.2			—			—			—
Corporate bonds		18.1			—			18.1			—			—
U.S. Treasury and agency bonds		12.1			6.1			6.0			—			—
Mortgage and asset backed securities		0.8			—			0.8			—			—
Combination debt/equity/other fund		3.9			3.9			—			—			—
Cash and cash equivalents		0.5			0.5			—			—			—
Short-term investments		0.1			—			—			—			0.1
Other		0.3			—			0.3			—			—
Total		$	118.3		$	93.0		$	25.2		$	—		$	0.1

123

				Fair Value Measurements Using
Description	December 31 2020			Level 1			Level 2			Level 3			Assets measured at NAV
		(millions)
Evergy Kansas Central Post-Retirement Benefit Plans
Domestic equities		$	41.9		$	—		$	—		$	—		$	41.9
International equities		27.7			—			—			—			27.7
Bond funds		55.5			—			—			—			55.5
Cash and cash equivalents		0.7			0.7			—			—			—
Total		$	125.8		$	0.7		$	—		$	—		$	125.1
Evergy Metro Post-Retirement Benefit Plans
Domestic equities		$	4.6		$	4.6		$	—		$	—		$	—
International equities		1.2			1.2			—			—			—
Bond funds		79.0			0.2			—			—			78.8
Corporate bonds		17.9			—			17.9			—			—
U.S. Treasury and agency bonds		13.6			5.7			7.9			—			—
Mortgage and asset backed securities		0.5			—			0.5			—			—
Cash and cash equivalents		5.4			5.4			—			—			—
Other		0.3			—			0.3			—			—
Total		$	122.5		$	17.1		$	26.6		$	—		$	78.8

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following tables.

Assumed annual health care cost growth rates as of December 31, 2021	Evergy		Evergy Kansas Central		Evergy Metro
Health care cost trend rate assumed for next year	6.0	%	6.0	%	6.0	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%	4.5	%
Year that rate reaches ultimate trend	2030		2030		2030
Assumed annual health care cost growth rates as of December 31, 2020	Evergy		Evergy Kansas Central		Evergy Metro
Health care cost trend rate assumed for next year	6.0	%	6.0	%	6.0	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%	4.5	%
Year that rate reaches ultimate trend	2027		2027		2027

Employee Savings Plans

Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table.

	2021		2020		2019
	(millions)
Evergy	$	25.6	$	17.4	$	17.6
Evergy Kansas Central	11.7		9.6		9.6
Evergy Metro	13.9		7.8		8.0

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10. EQUITY COMPENSATION

Evergy's Long-Term Incentive Plan is an equity compensation plan approved by Evergy shareholders. The Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, limited stock appreciation rights, director shares, director deferred share units and performance shares to directors, officers and other employees of Evergy. Common stock shares delivered by Evergy under the Long-Term Incentive Plan may be authorized but unissued, held in the treasury or purchased on the open market (including private purchases) in accordance with applicable securities laws. Evergy has a policy of delivering newly issued shares and does not expect to repurchase common shares during 2022 to satisfy equity compensation payments and director deferred share unit conversion. Forfeiture rates are based on historical forfeitures and future expectations and are reevaluated annually.

The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.

	2021		2020		2019
Evergy	(millions)
Equity compensation expense	$	15.6	$	15.5	$	15.5
Income tax (expense) benefit	(0.1)		2.2		3.0
Evergy Kansas Central
Equity compensation expense	6.9		7.6		6.7
Income tax (expense) benefit	(0.2)		1.6		1.9
Evergy Metro
Equity compensation expense	5.1		5.7		5.7
Income tax (expense) benefit	(0.6)		0.2		0.3

Restricted Share Units

Evergy utilizes RSUs for new grants of stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon the achievement of specific performance goals or RSUs with only service requirements that vest solely upon the passage of time.

RSUs with Performance Measures

The payment of RSUs with performance measures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Board. The numbers of RSUs with performances measures ultimately paid can vary from the numbers of RSUs with performance measures initially granted depending on Evergy's performance over the stated performance periods. Compensation expense for RSUs with performance measures is calculated by recognizing the portion of the fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of RSUs with performance measures ultimately paid.

The fair value of RSUs with performance measures is estimated using the market value of Evergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2021, inputs for expected volatility, dividend yield and the risk-free rate were 32%, 3.99% and 0.24%, respectively.

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RSU activity for awards with performance measures for 2021 is summarized in the following table.

	Nonvested Restricted Share Units		Grant Date Fair Value*
Beginning balance January 1, 2021		347,964		$	61.57
Granted		270,277		57.21
Forfeited		(104,526)		64.85
Ending balance December 31, 2021		513,715		58.79

* weighted-average

At December 31, 2021, the remaining weighted-average contractual term related to RSU awards with performance measures was 1.4 years.  The weighted-average grant-date fair value of RSUs granted with performance measures was $57.21, $87.98 and $37.87 in 2021, 2020 and 2019, respectively. At December 31, 2021, there was $15.3 million of unrecognized compensation expense related to unvested RSUs with performance measures. No RSUs with performance measures vested in 2021, 2020 and 2019.

RSUs with Only Service Requirements

Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award. Dividends are accrued over the vesting period and are invested in additional RSU's subject to the same service conditions.

RSU activity for awards with only service requirements for 2021 is summarized in the following table.

	Nonvested Restricted Share Units		Grant Date Fair Value*
Beginning balance January 1, 2021		160,742		$	59.42
Granted		171,363		55.30
Vested		(43,785)		54.61
Forfeited		(35,274)		59.24
Ending balance December 31, 2021		253,046		57.18

* weighted-average

At December 31, 2021, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.4 years.  The weighted-average grant-date fair value of RSUs granted with only service requirements was $55.30, $68.92 and $54.47 in 2021, 2020 and 2019, respectively. At December 31, 2021, there was $7.0 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $2.4 million, $6.5 million and $2.6 million in 2021, 2020 and 2019, respectively.

In addition to RSU's, Evergy also had 36,012 shares and 108,010 shares of restricted stock and performance shares, respectively, that vested in 2021 related to Great Plains Energy equity compensation awards that converted to equivalent Evergy awards at the closing of the Great Plains Energy and Evergy Kansas Central merger in 2018.

11. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT

In August 2021, Evergy amended its $2.5 billion master credit facility and extended the maturity until 2026. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. Evergy adjusted these sublimits in the first quarter of 2021 as further detailed in the table below. The applicable interest rates and commitment fees of the facility are subject to upward or downward adjustments, within

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certain limitations, if Evergy achieves, or fails to achieve, certain sustainability-linked targets based on two key performance indicator metrics: (i) Non-Emitting Generation Capacity and (ii) Diverse Supplier Spend (as defined in the facility).

A default by any borrower under the facility or one of its significant subsidiaries on other indebtedness totaling more than $100.0 million constitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of December 31, 2021, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.

The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of December 31, 2021 and 2020.

			Amounts Drawn
	Master Credit Facility		Commercial Paper		Letters of Credit		Cash Borrowings		Available Borrowings		Weighted Average Interest Rate on Short-Term Borrowings
December 31, 2021	(millions)
Evergy, Inc.	$	700.0	$	358.0	$	0.7	$	—	$	341.3	0.34%
Evergy Kansas Central	750.0		406.0		0.1		—		343.9		0.41%
Evergy Metro	350.0		—		—		—		350.0		—%
Evergy Missouri West	700.0		395.3		—		—		304.7		0.40%
Evergy	$	2,500.0	$	1,159.3	$	0.8	$	—	$	1,339.9
December 31, 2020
Evergy, Inc.	$	450.0	n/a		$	0.7	$	200.0	$	249.3	1.40%
Evergy Kansas Central	1,000.0		50.0		17.0		—		933.0		0.23%
Evergy Metro	600.0		—		—		—		600.0		—%
Evergy Missouri West	450.0		65.0		2.0		—		383.0		0.36%
Evergy	$	2,500.0	$	115.0	$	19.7	$	200.0	$	2,165.3

In May 2021, Evergy, Inc. established a commercial paper program supported by its borrowing capacity under the master credit facility.

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12. LONG-TERM DEBT

The Evergy Companies' long-term debt is detailed in the following tables.

December 31, 2021	Issuing Entity	Year Due	Evergy		Evergy Kansas Central		Evergy Metro
Mortgage Bonds			(millions)
3.25% Series	Evergy Kansas Central, Inc.	2025	250.0		250.0		—
2.55% Series	Evergy Kansas Central, Inc.	2026	350.0		350.0		—
3.10% Series	Evergy Kansas Central, Inc.	2027	300.0		300.0		—
4.125% Series	Evergy Kansas Central, Inc.	2042	550.0		550.0		—
4.10% Series	Evergy Kansas Central, Inc.	2043	430.0		430.0		—
4.625% Series	Evergy Kansas Central, Inc.	2043	250.0		250.0		—
4.25% Series	Evergy Kansas Central, Inc.	2045	300.0		300.0		—
3.25% Series	Evergy Kansas Central, Inc.	2049	300.0		300.0
3.45% Series	Evergy Kansas Central, Inc.	2050	500.0		500.0		—
6.15% Series	Evergy Kansas South, Inc.	2023	50.0		50.0		—
6.53% Series	Evergy Kansas South, Inc.	2037	175.0		175.0		—
6.64% Series	Evergy Kansas South, Inc.	2038	100.0		100.0		—
4.30% Series	Evergy Kansas South, Inc.	2044	250.0		250.0		—
2.95% EIRR bonds	Evergy Metro, Inc.	2023	79.5		—		79.5
4.125% Series	Evergy Metro, Inc.	2049	400.0		—		400.0
2.25% Series	Evergy Metro, Inc.	2030	400.0		—		400.0
Pollution Control Bonds
0.132% Series(b)	Evergy Kansas Central, Inc.	2032	45.0		45.0		—
0.132% Series(b)	Evergy Kansas Central, Inc.	2032	30.5		30.5		—
0.132% Series(b)	Evergy Kansas South, Inc.	2027	21.9		21.9		—
2.50% Series	Evergy Kansas South, Inc.	2031	50.0		50.0		—
0.132% Series(b)	Evergy Kansas South, Inc.	2032	14.5		14.5		—
0.132% Series(b)	Evergy Kansas South, Inc.	2032	10.0		10.0		—
0.167% Series 2007A and 2007B(b)	Evergy Metro, Inc.	2035	146.5		—		146.5
2.75% Series 2008	Evergy Metro, Inc.	2038	23.4		—		23.4
Senior Notes
3.15% Series(g)	Evergy Metro, Inc.	2023	300.0		—		300.0
3.65% Series(g)	Evergy Metro, Inc.	2025	350.0		—		350.0
6.05% Series (5.78% rate)(a)(g)	Evergy Metro, Inc.	2035	250.0		—		250.0
5.30% Series(g)	Evergy Metro, Inc.	2041	400.0		—		400.0
4.20% Series(g)	Evergy Metro, Inc.	2047	300.0		—		300.0
4.20% Series(g)	Evergy Metro, Inc.	2048	300.0		—		300.0
3.49% Series A(h)	Evergy Missouri West, Inc.	2025	36.0		—		—
4.06% Series B(h)	Evergy Missouri West, Inc.	2033	60.0		—		—
4.74% Series C(h)	Evergy Missouri West, Inc.	2043	150.0		—		—
3.74% Series(h)	Evergy Missouri West, Inc.	2022	100.0		—		—
2.86% Series A(h)	Evergy Missouri West, Inc.	2031	350.0		—		—
3.01% Series B(h)	Evergy Missouri West, Inc.	2033	75.0		—		—
3.21% Series C(h)	Evergy Missouri West, Inc.	2036	75.0		—		—
5.292% Series	Evergy, Inc.(f)	2022	287.5		—		—
2.45% Series	Evergy, Inc.	2024	800.0		—		—
2.90% Series (3.77% rate)(a)	Evergy, Inc.	2029	800.0		—		—
Medium Term Notes
7.33% Series(h)	Evergy Missouri West, Inc.	2023	3.0		—		—
7.17% Series(h)	Evergy Missouri West, Inc.	2023	7.0		—		—
Fair value adjustment(e)			97.9		—		—
Current maturities(c)			(389.3)		—		—
Unamortized debt discount and debt issuance costs			(80.5)		(42.7)		(24.4)
Total excluding current maturities(d)			$	9,297.9	$	3,934.2	$	2,925.0

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December 31, 2020	Issuing Entity	Year Due	Evergy		Evergy Kansas Central		Evergy Metro
Mortgage Bonds			(millions)
3.25% Series	Evergy Kansas Central, Inc.	2025	$	250.0	$	250.0	$	—
2.55% Series	Evergy Kansas Central, Inc.	2026	350.0		350.0		—
3.10% Series	Evergy Kansas Central, Inc.	2027	300.0		300.0		—
4.125% Series	Evergy Kansas Central, Inc.	2042	550.0		550.0		—
4.10% Series	Evergy Kansas Central, Inc.	2043	430.0		430.0		—
4.625% Series	Evergy Kansas Central, Inc.	2043	250.0		250.0		—
4.25% Series	Evergy Kansas Central, Inc.	2045	300.0		300.0		—
3.25% Series	Evergy Kansas Central, Inc.	2049	300.0		300.0
3.45% Series	Evergy Kansas Central, Inc.	2050	500.0		500.0		—
6.15% Series	Evergy Kansas South, Inc.	2023	50.0		50.0		—
6.53% Series	Evergy Kansas South, Inc.	2037	175.0		175.0		—
6.64% Series	Evergy Kansas South, Inc.	2038	100.0		100.0		—
4.30% Series	Evergy Kansas South, Inc.	2044	250.0		250.0		—
2.95% EIRR bonds	Evergy Metro, Inc.	2023	79.5		—		79.5
4.125% Series	Evergy Metro, Inc.	2049	400.0		—		400.0
2.25% Series	Evergy Metro, Inc.	2030	400.0		—		400.0
9.44% Series(h)	Evergy Missouri West, Inc.	2021	1.1		—		—
Pollution Control Bonds
0.18% Series(b)	Evergy Kansas Central, Inc.	2032	45.0		45.0		—
0.18% Series(b)	Evergy Kansas Central, Inc.	2032	30.5		30.5		—
0.18% Series(b)	Evergy Kansas South, Inc.	2027	21.9		21.9		—
2.50% Series	Evergy Kansas South, Inc.	2031	50.0		50.0		—
0.18% Series(b)	Evergy Kansas South, Inc.	2032	14.5		14.5		—
0.18% Series(b)	Evergy Kansas South, Inc.	2032	10.0		10.0		—
0.20% Series 2007A and 2007B(b)	Evergy Metro, Inc.	2035	146.5		—		146.5
2.75% Series 2008	Evergy Metro, Inc.	2038	23.4		—		23.4
Senior Notes
3.15% Series(g)	Evergy Metro, Inc.	2023	300.0		—		300.0
3.65% Series(g)	Evergy Metro, Inc.	2025	350.0		—		350.0
6.05% Series (5.78% rate)(a)(g)	Evergy Metro, Inc.	2035	250.0		—		250.0
5.30% Series(g)	Evergy Metro, Inc.	2041	400.0		—		400.0
4.20% Series(g)	Evergy Metro, Inc.	2047	300.0		—		300.0
4.20% Series(g)	Evergy Metro, Inc.	2048	300.0		—		300.0
8.27% Series(h)	Evergy Missouri West, Inc.	2021	80.9		—		—
3.49% Series A	Evergy Missouri West, Inc.	2025	36.0		—		—
4.06% Series B	Evergy Missouri West, Inc.	2033	60.0		—		—
4.74% Series C	Evergy Missouri West, Inc.	2043	150.0		—		—
3.74% Series	Evergy Missouri West, Inc.	2022	100.0		—		—
4.85% Series	Evergy, Inc.(f)	2021	350.0		—		—
5.292% Series	Evergy, Inc.(f)	2022	287.5		—		—
2.45% Series	Evergy, Inc.	2024	800.0		—		—
2.90% Series (3.77% rate)(a)	Evergy, Inc.	2029	800.0		—		—
Medium Term Notes
7.33% Series(h)	Evergy Missouri West, Inc.	2023	3.0		—		—
7.17% Series(h)	Evergy Missouri West, Inc.	2023	7.0		—		—
Fair value adjustment(e)			110.4		—		—
Current maturities(c)			(436.4)		—		—
Unamortized debt discount and debt issuance costs			(84.9)		(45.4)		(26.4)
Total excluding current maturities(d)			$	9,190.9	$	3,931.5	$	2,923.0

(a)Rate after amortizing gains/losses recognized in OCI on settlements of interest rate hedging instruments.

(b)Variable rate.

(c)Evergy's current maturities total as of December 31, 2021 and 2020, includes $1.8 million and $4.4 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger.

(d)At December 31, 2021 and 2020, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by Evergy Metro.

(e)Represents the fair value adjustments recorded at Evergy consolidated related to the long-term debt of Great Plains Energy, Evergy Metro and Evergy Missouri West in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments.

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(f)Originally issued by Great Plains Energy but assumed by Evergy, Inc. as part of the Great Plains Energy and Evergy Kansas Central merger.

(g)Effectively secured pursuant to the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture) through the issuance of collateral mortgage bonds to the trustee in 2019.

(h)Unconditionally guaranteed by Evergy, Inc.

Mortgage Bonds

The Evergy Kansas Central and Evergy Kansas South mortgages each contain provisions restricting the amount of first mortgage bonds (FMBs) that could be issued by each entity. Evergy Kansas Central and Evergy Kansas South must be in compliance with such restrictions prior to the issuance of additional first mortgage bonds or other secured indebtedness. The amount of Evergy Kansas Central FMBs authorized by its Mortgage and Deed of Trust, dated July 1, 1939, as supplemented, is subject to certain limitations as described below. The amount of Evergy Kansas South FMBs authorized by the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as supplemented and amended, is limited to a maximum of $3.5 billion, unless amended further. FMBs are secured by utility assets. Amounts of additional FMBs that may be issued are subject to property, earnings and certain restrictive provisions, except in connection with certain refundings, of each mortgage. As of December 31, 2021, approximately $998.9 million and $2,828.6 million principal amounts of additional Evergy Kansas Central FMBs or Evergy Kansas South FMBs, respectively, could be issued under the most restrictive provisions of their mortgages.

Evergy Metro has issued mortgage bonds under the Evergy Metro Mortgage Indenture, which creates a mortgage lien on substantially all Evergy Metro's utility plant. Additional Evergy Metro bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2021, approximately $5,075.8 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.

Senior Notes

Under the terms of the note purchase agreements for certain Evergy Missouri West senior notes, Evergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreements, not greater than 0.65 to 1.00. In addition, Evergy Missouri West's priority debt, as defined in the agreements, cannot exceed 15% of consolidated tangible net worth, as defined in the agreements. At December 31, 2021, Evergy Missouri West was in compliance with these covenants.

In April 2021, Evergy Missouri West issued in a private placement $350.0 million of 2.86% Series A Senior Notes, maturing in 2031, $75.0 million of 3.01% Series B Senior Notes, maturing in 2033, and $75.0 million of 3.21% Series C Senior Notes, maturing in 2036, pursuant to a note purchase agreement. In connection with the issuance, Evergy entered into an agreement to provide an unconditional guaranty of the Series A, B and C Senior Notes, and as required by certain existing note purchase agreements, also agreed to provide unconditional guaranty of the following series of outstanding Evergy Missouri West unsecured senior notes:

•$36.0 million of 3.49% Series A, maturing in 2025;

•$60.0 million of 4.06% Series B, maturing in 2033;

•$150.0 million of 4.74% Series C, maturing in 2043; and

•$100.0 million of 3.74% Series, maturing in 2022.

In April 2021, Evergy redeemed its $350.0 million of 4.85% Senior Notes, which had a maturity date of June 2021.

In November 2021, Evergy Missouri West repaid its $80.9 million of 8.27% Senior Notes at maturity.

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Scheduled Maturities

Evergy's, Evergy Kansas Central's and Evergy Metro's long-term debt maturities for the next five years are detailed in the following table.

	2022		2023		2024		2025		2026
	(millions)
Evergy	$	387.5	$	439.5	$	800.0	$	636.0	$	350.0
Evergy Kansas Central	—		50.0		—		250.0		350.0
Evergy Metro	—		379.5		—		350.0		—

13. FAIR VALUE MEASUREMENTS

Values of Financial Instruments

GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at net asset value (NAV), which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.

Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges.

Level 2 –  Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets or other financial instruments priced with models using highly observable inputs.

Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation.

NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.

The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.

Interest Rate Derivatives

The Evergy Companies are exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. From time to time, risk management activities may include entering into interest rate swap agreements to protect against unfavorable interest rate changes relating to forecasted debt transactions. These interest rate swap agreements can be designated as cash flow hedges, in which case gains and losses on the interest rate swaps are deferred in other comprehensive income to be recognized as an adjustment to interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify all cash inflows and outflows for interest rate swap agreements accounted for as cash flow hedges of forecasted debt transactions as financing activities on their consolidated statements of cash flows.

In September 2019, Evergy issued $800.0 million of 2.90% Senior Notes maturing in 2029 and paid $69.8 million to settle an interest rate swap agreement with a notional amount of $500.0 million that was designated as a cash flow hedge of interest payments on the debt issuance. The $69.8 million pre-tax loss was recorded in accumulated other comprehensive loss on Evergy's consolidated balance sheet and is being reclassified into interest expense over

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the ten-year term of the debt. For 2021, 2020 and 2019, $7.0 million, $7.0 million and $2.0 million, respectively, were reclassified from accumulated other comprehensive loss to interest expense on Evergy's consolidated statements of comprehensive income. For 2021, 2020 and 2019, $(1.5) million, $(4.0) million and $(0.5) million, respectively, were reclassified from accumulated other comprehensive loss to income tax expense on Evergy's consolidated statements of comprehensive income. As of December 31, 2021, Evergy expects to amortize $5.4 million to earnings from accumulated other comprehensive loss over the next twelve months.

Fair Value of Long-Term Debt

The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt and long-term debt of variable interest entities is summarized in the following table.

	December 31, 2021				December 31, 2020
	Book Value		Fair Value		Book Value		Fair Value
Long-term debt(a)	(millions)
Evergy(b)	$	9,687.2	$	10,758.5	$	9,627.3	$	11,274.2
Evergy Kansas Central	3,934.2		4,522.5		3,931.5		4,801.7
Evergy Metro	2,925.0		3,400.8		2,923.0		3,591.2
Long-term debt of variable interest entities(a)
Evergy	$	—	$	—	$	18.8	$	19.1
Evergy Kansas Central	—		—		18.8		19.1

(a) Includes current maturities.

(b) Book value as of December 31, 2021 and 2020, includes $97.9 million and $110.4 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.

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Recurring Fair Value Measurements

The following tables include the Evergy Companies' balances of financial assets and liabilities measured at fair value on a recurring basis.

Description	December 31, 2021			Level 1		Level 2			Level 3			NAV
Evergy Kansas Central		(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds		$	140.4	$	126.5		$	—		$	—		$	13.9
International equity funds		74.0		74.0			—			—			—
Core bond fund		58.1		58.1			—			—			—
High-yield bond fund		29.6		29.6			—			—			—
Emerging markets bond fund		18.0		18.0			—			—			—
Alternative investments fund		32.7		—			—			—			32.7
Real estate securities fund		15.2		—			—			—			15.2
Cash equivalents		0.4		0.4			—			—			—
Total nuclear decommissioning trust		368.4		306.6			—			—			61.8
Rabbi trust
Fixed income funds		19.6		19.6			—			—			—
Equity funds		9.5		9.5			—			—			—
Combination debt/equity/other fund		2.4		2.4			—			—			—
Cash equivalents		0.2		0.2			—			—			—
Total rabbi trust		31.7		31.7			—			—			—
Total		$	400.1	$	338.3		$	—		$	—		$	61.8
Evergy Metro
Assets
Nuclear decommissioning trust(a)
Equity securities		$	299.2	$	299.2		$	—		$	—		$	—
Debt securities
U.S. Treasury		46.1		46.1			—			—			—
U.S. Agency		0.4		—			0.4			—			—
State and local obligations		4.0		—			4.0			—			—
Corporate bonds		43.7		—			43.7			—			—
Foreign governments		0.1		—			0.1			—			—
Cash equivalents		6.8		6.8			—			—			—
Other		—		—			—			—			—
Total nuclear decommissioning trust		400.3		352.1			48.2			—			—
Self-insured health plan trust(b)
Equity securities		2.0		2.0			—			—			—
Debt securities		8.7		2.7			6.0			—			—
Cash and cash equivalents		1.8		1.8			—			—			—
Total self-insured health plan trust		12.5		6.5			6.0			—			—
Total		$	412.8	$	358.6		$	54.2		$	—		$	—
Other Evergy
Other Evergy investments
Equity securities(c)		$	31.4	$	—		$	31.4		$	—		$	—
Total other Evergy investments		31.4		—			31.4			—			—
Rabbi trusts
Core bond fund		12.5		12.5			—			—			—
Total rabbi trusts		12.5		12.5			—			—			—
Total		$	43.9	$	12.5		$	31.4		$	—		$	—
Evergy
Assets
Nuclear decommissioning trust(a)		$	768.7	$	658.7		$	48.2		$	—		$	61.8
Rabbi trusts		44.2		44.2			—			—			—
Self-insured health plan trust(b)		12.5		6.5			6.0			—			—
Other Evergy investments(c)		31.4		—			31.4			—			—
Total		$	856.8	$	709.4		$	85.6		$	—		$	61.8

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Description	December 31, 2020			Level 1			Level 2			Level 3			NAV
Evergy Kansas Central		(millions)
Assets
Nuclear decommissioning trust(a)
Domestic equity funds		$	102.7		$	95.1		$	—		$	—		$	7.6
International equity funds		63.8			63.8			—			—			—
Core bond fund		40.6			40.6			—			—			—
High-yield bond fund		25.0			25.0			—			—			—
Emerging markets bond fund		21.0			21.0			—			—			—
Combination debt/equity/other fund		20.1			20.1			—			—			—
Alternative investments fund		23.2			—			—			—			23.2
Real estate securities fund		12.9			—			—			—			12.9
Cash equivalents		0.5			0.5			—			—			—
Total nuclear decommissioning trust		309.8			266.1			—			—			43.7
Rabbi trust
Core bond fund		25.6			—			—			—			25.6
Combination debt/equity/other fund		7.1			—			—			—			7.1
Total rabbi trust		32.7			—			—			—			32.7
Total		$	342.5		$	266.1		$	—		$	—		$	76.4
Evergy Metro
Assets
Nuclear decommissioning trust(a)
Equity securities		$	243.1		$	243.1		$	—		$	—		$	—
Debt securities
U.S. Treasury		47.7			47.7			—			—			—
U.S. Agency		0.5			—			0.5			—			—
State and local obligations		4.1			—			4.1			—			—
Corporate bonds		43.1			—			43.1			—			—
Foreign governments		0.1			—			0.1			—			—
Cash equivalents		3.2			3.2			—			—			—
Other		0.5			0.5			—			—			—
Total nuclear decommissioning trust		342.3			294.5			47.8			—			—
Self-insured health plan trust(b)
Equity securities		1.7			1.7			—			—			—
Debt securities		8.0			2.8			5.2			—			—
Cash and cash equivalents		3.5			3.5			—			—			—
Total self-insured health plan trust		13.2			8.0			5.2			—			—
Total		$	355.5		$	302.5		$	53.0		$	—		$	—
Other Evergy
Assets
Rabbi trusts
Fixed income fund		$	13.1		$	—		$	—		$	—		$	13.1
Cash and cash equivalents		0.5			0.5			—			—			—
Total rabbi trusts		$	13.6		$	0.5		$	—		$	—		$	13.1
Evergy
Assets
Nuclear decommissioning trust(a)		$	652.1		$	560.6		$	47.8		$	—		$	43.7
Rabbi trust		46.3			0.5			—			—			45.8
Self-insured health plan trust(b)		13.2			8.0			5.2			—			—
Total		$	711.6		$	569.1		$	53.0		$	—		$	89.5

(a)With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.  

(b)Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities.

(c)Fair value is based on quoted market prices adjusted for a discount for lack of marketability based on a valuation model due to a restriction on the sale of the stock.

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Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions.

The following table provides additional information on these Evergy and Evergy Kansas Central investments.

	December 31, 2021				December 31, 2020				December 31, 2021
	Fair		Unfunded		Fair		Unfunded		Redemption	Length of
	Value		Commitments		Value		Commitments		Frequency	Settlement
Evergy Kansas Central	(millions)
Nuclear decommissioning trust:
Domestic equity funds	$	13.9	$	1.7	$	7.6	$	2.2	(a)	(a)
Alternative investments fund(b)	32.7		—		23.2		—		Quarterly	65 days
Real estate securities fund(b)	15.2		—		12.9		—		Quarterly	65 days
Total	$	61.8	$	1.7	$	43.7	$	2.2
Rabbi trust:
Core bond fund	$	—	$	—	$	25.6	$	—	(c)	(c)
Combination debt/equity/other fund	—		—		7.1		—		(c)	(c)
Total	$	—	$	—	$	32.7	$	—
Other Evergy
Rabbi trust:
Fixed income fund	$	—	$	—	$	13.1	$	—	(c)	(c)
Total Evergy investments at NAV	$	61.8	$	1.7	$	89.5	$	2.2

(a)This investment is in five long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. Three funds have begun to make distributions. The initial investment in the fourth and fifth funds occurred in 2016 and 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to three additional one-year periods. The fifth fund's term is 15 years, subject to additional extensions approved by a fund advisory committee to provide for an orderly liquidation of fund investments and dissolution of the fund.

(b)There is a holdback on final redemptions.

(c)This investment can be redeemed immediately and is not subject to any restrictions on redemptions.

The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the consolidated statements of income and comprehensive income.

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The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.

		2021		2020		2019
Evergy	(millions)
Nuclear decommissioning trust - equity securities		$	101.8	$	45.5	74.0
Nuclear decommissioning trust - debt securities		(4.5)		5.3		5.1
Rabbi trusts - equity securities		(1.8)		(5.6)		3.1
Total		$	95.5	$	45.2	$	82.2
Evergy Kansas Central
Nuclear decommissioning trust - equity securities		$	50.5	$	21.9	33.3
Rabbi trust - equity securities		(1.4)		(6.1)		3.2
Total		$	49.1	$	15.8	$	36.5
Evergy Metro
Nuclear decommissioning trust - equity securities		$	51.3	$	23.6	40.7
Nuclear decommissioning trust - debt securities		(4.5)		5.3		5.1
Total		$	46.8	$	28.9	$	45.8

14. COMMITMENTS AND CONTINGENCIES

Environmental Matters

Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results. The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the imposition of remedial requirements. The Evergy Companies believe that all their operations are in substantial compliance with current federal, state and local environmental standards.

There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' operations and consolidated financial results. Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below.

Clean Air Act - Startup, Shutdown and Malfunction (SSM) Regulation

In 2015, the EPA issued a final rule addressing how state implementation plans (SIPs) can treat excess emissions during SSM events. This rule was referred to as the 2015 SIP Call Rule. The rule required 36 states to submit SIP revisions by November 2016 to remove certain exemptions and other discretionary enforcement provisions that apply to excess emissions during SSM events. Legal challenges ensued and the case was eventually placed in abeyance. In December 2021, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit) restarted the 2015 SIP Call Rule litigation. The outcome of this case could result in required SIP revisions in Oklahoma, Kansas and Missouri which could have a material impact on the Evergy Companies.

Ozone Interstate Transport State Implementation Plans

In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. Impacted states were required to submit Interstate Transport State Implementation Plans (ITSIPs) in 2018 to comply with the good neighbor provisions of the Clean Air Act. The EPA did not act on these ITSIP submissions and was challenged in a court filing in May 2021 to address them. In January 2022, the U.S. District Court for the Northern District of California entered a final consent decree between the EPA and various environmental groups requiring the EPA to approve or disapprove, in whole or in part, by February 28, 2022, the ITSIPs for the 2015 Ozone NAAQS, for twenty-one states including Kansas, Missouri and Oklahoma. For any ITSIP fully or partially

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disapproved by the EPA along with a corresponding federal implementation plan (FIP) proposed by February 28, 2022, the consent decree requires the EPA to sign a final action on the ITSIP for the affected state by December 15, 2022. On January 25, 2022, the EPA transmitted a proposed FIP to the Office of Management and Budget for review. On February 8, 2022, the EPA published a proposed approval of the Kansas ITSIP in the Federal Register. On February 22, 2022, the EPA published proposed disapprovals of ITSIPs for nineteen states including Missouri and Oklahoma. The EPA is also in the process of reconsidering the 2020 Ozone NAAQS and the 2020 PM2.5 NAAQS. Due to uncertainty regarding the disposition of these 2015 Ozone NAAQS ITSIPs for Kansas, Missouri and Oklahoma, along with potential lowering of the 2020 NAAQS, the Evergy Companies cannot determine the impacts on their operations or consolidated financial results, but the cost to comply with a FIP or a lower future NAAQS could be material.

Regional Haze Rule

In 1999, the EPA finalized the Regional Haze Rule which aims to restore national parks and wilderness areas to pristine conditions. The rule requires states in coordination with the EPA, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and other interested parties to develop and implement air quality protection plans to reduce the pollution that causes visibility impairment. There are 156 "Class I" areas across the U.S. that must be restored to pristine conditions by the year 2064. There are no Class I areas in Kansas, whereas Missouri has two: the Hercules-Glades Wilderness Area and the Mingo Wilderness Area. States must submit revisions to their Regional Haze Rule SIPs every ten years and the first round was due in 2007. For the second ten-year implementation period, the EPA issued a final rule revision in 2017 that allowed states to submit their SIP revisions by July 31, 2021. The Evergy Companies have been in contact with the Kansas Department of Health and Environmental (KDHE) and the Missouri Department of Natural Resources (MDNR) as they worked to draft their SIP revisions. The Missouri SIP revision is still being drafted. MDNR has indicated they intend to submit the Missouri SIP revision in early 2022 and that it will not require any additional reductions from the Evergy Companies' generating units in the state. The Kansas SIP revision was placed on public notice in June 2021 and requested no additional emission reductions by electric utilities based on the significant reductions that were achieved during the first implementation period. The EPA provided comments on the Kansas SIP revision in June 2021 that each state is statutorily required to conduct a "four-factor analysis" on at least two sources within the state to help determine if further emission reductions are necessary. The EPA also stated it would be difficult to approve the Kansas SIP revision if at least two four-factor analyses are not conducted on Kansas emission sources. KDHE submitted the Kansas SIP revision in July 2021. If a Kansas generating unit of the Evergy Companies is selected for analysis, the possibility exists that the state or EPA, through a FIP, could determine that additional operational or physical modifications are required on the generating unit to further reduce emissions. The overall cost of those modifications could be material to the Evergy Companies.

Greenhouse Gases

Burning coal and other fossil fuels releases carbon dioxide (CO2) and other gases referred to as greenhouse gases (GHG). Various regulations under the federal Clean Air Act Amendments of 1990 (CAA) limit CO2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions.

In July 2019, the EPA published the final Affordable Clean Energy (ACE) rule in the Federal Register. This rule contained emission guidelines for GHG emissions from existing electric utility generating units (EGUs) and revisions to emission guideline implementing regulations. The rule defined the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements. In conjunction with the finalization of the ACE rule, the EPA repealed its previously adopted Clean Power Plan (CPP). In January 2021, the D.C. Circuit vacated and remanded the ACE rule back to the EPA. In October 2021, the Supreme Court granted petitions for certiorari to review the D.C. Circuit decision to vacate and remand the ACE rule. A ruling from the Supreme Court is expected in mid-2022.

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Due to uncertainty regarding the future of the ACE rule or other potential GHG regulations, the Evergy Companies cannot determine the impacts on their operations or consolidated financial results, but the cost to comply with the ACE rule or other potential GHG rules could be material.

Water

The Evergy Companies discharge some of the water used in generation and other operations containing substances deemed to be pollutants. A November 2015 EPA rule applicable to steam-electric power generating plants establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged. Implementation timelines for this 2015 rule vary from 2018 to 2023. In April 2019, the U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that vacated and remanded portions of the original ELG rule. Due to this ruling, the EPA announced a plan in July 2021 to release a proposed rulemaking in September 2022 to address the vacated limitations for legacy wastewater and landfill leachate. Future ELG modifications for the best available technology economically achievable for the discharge of legacy wastewater and landfill leachate are likely and could be material to the Evergy Companies.

In October 2020, the EPA published the final ELG reconsideration rule. This rule adjusts numeric limits for flue gas desulfurization (FGD) wastewater and adds a 10% volumetric purge limit for bottom ash transport water. The timeline for final FGD wastewater compliance is as soon as possible on or after one year following publication of the final rule in the Federal Register but no later than December 31, 2025. In August 2021, the EPA published notice in the Federal Register that it is initiating a supplemental rulemaking to revise the ELG regulations after completing review of the reconsideration rule as a result of an executive order from President Biden. As part of the rulemaking process, the EPA will determine if more stringent limitations and standards are appropriate. The 2020 ELG reconsideration rule will remain in effect while the EPA undertakes this new rulemaking.

The Evergy Companies have reviewed the 2020 ELG reconsideration regulation, and the costs to comply with these changes are not expected to be material. However, the Evergy Companies cannot predict what revisions the EPA may make under its supplemental rulemaking to revise the ELG regulations, and compliance costs associated with any revisions could be material.

After reviewing the Navigable Waters Protection Rule as directed by President Biden's administration, the EPA and Department of the Army determined a need to revise the definition to prevent environmental degradation. In December 2021, the EPA and the Department of the Army published a proposed rule that repeals the Navigable Waters Protection Rule and revises the definition of “Waters of the United States.” This proposed rule restores definitions of Waters of the United States that were in place prior to 2015. The Evergy Companies are reviewing the proposed rule and the impact on their operations or consolidated financial results could be material. A second rulemaking is expected in the future which will replace the Navigable Waters Protection Rule. The cost to comply with any future rulemaking that replaces the Navigable Waters Protection Rule could be material to the Evergy Companies.

Regulation of Coal Combustion Residuals

In the course of operating their coal generation plants, the Evergy Companies produce CCRs, including fly ash, gypsum and bottom ash. The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units.

The Evergy Companies have recorded AROs for their current estimates for the closure of ash disposal ponds and landfills, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of groundwater monitoring of CCR units or changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ponds and landfills. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.

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Nuclear Insurance

Nuclear liability, property and accidental outage insurance is maintained for Wolf Creek. These policies contain certain industry standard terms, conditions and exclusions, including, but not limited to, ordinary wear and tear and war. An industry aggregate limit of $3.2 billion for nuclear events ($1.8 billion of non-nuclear events) plus any reinsurance, indemnity or any other source recoverable by Nuclear Electric Insurance Limited (NEIL), provider of property and accidental outage insurance, exists for acts of terrorism affecting Wolf Creek or any other NEIL insured plant within 12 months from the date of the first act. In addition, participation is required in industry-wide retrospect assessment programs as discussed below.

Nuclear Liability Insurance

Pursuant to the Price-Anderson Act, liability insurance includes coverage against public nuclear liability claims resulting from nuclear incidents to the required limit of public liability, which is approximately $13.6 billion. This limit of liability consists of the maximum available commercial insurance of $0.5 billion and the remaining $13.1 billion is provided through mandatory participation in an industry-wide retrospective assessment program. Under this retrospective assessment program, the owners of Wolf Creek are jointly and severally subject to an assessment of up to $137.6 million (Evergy's share is $129.4 million and each of Evergy Kansas Central's and Evergy Metro's is $64.7 million), payable at no more than $20.5 million (Evergy's share is $19.2 million and each of Evergy Kansas Central's and Evergy Metro's is $9.6 million) per incident per year per reactor for any commercial U.S. nuclear reactor qualifying incident. Both the total and yearly assessment is subject to an inflationary adjustment based on the Consumer Price Index and applicable premium taxes. In addition, the U.S. Congress could impose additional revenue-raising measures to pay claims.

Nuclear Property and Accidental Outage Insurance

The owners of Wolf Creek carry decontamination liability, nuclear property damage and premature nuclear decommissioning liability insurance for Wolf Creek totaling approximately $2.8 billion. Insurance coverage for non-nuclear property damage accidents total approximately $2.3 billion. In the event of an extraordinary nuclear accident, insurance proceeds must first be used for reactor stabilization and site decontamination in accordance with a plan mandated by the NRC. The Evergy Companies' share of any remaining proceeds can be used to pay for property damage or, if certain requirements are met, including decommissioning the plant, toward a shortfall in the nuclear decommissioning trust fund. The owners also carry additional insurance with NEIL to help cover costs of replacement power and other extra expenses incurred during a prolonged outage resulting from accidental property damage at Wolf Creek. If significant losses were incurred at any of the nuclear plants insured under the NEIL policies, the owners of Wolf Creek may be subject to retrospective assessments under the current policies of approximately $30.0 million (Evergy's share is $28.2 million and each of Evergy Kansas Central's and Evergy Metro's is $14.1 million).

Nuclear Insurance Considerations

Although the Evergy Companies maintain various insurance policies to provide coverage for potential losses and liabilities resulting from an accident or an extended outage, the insurance coverage may not be adequate to cover the costs that could result from a catastrophic accident or extended outage at Wolf Creek. Any substantial losses not covered by insurance, to the extent not recoverable in prices, would have a material effect on the Evergy Companies' consolidated financial results.

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Contractual Commitments - Fuel and Power

The Evergy Companies' contractual commitments for fuel and power at December 31, 2021 are detailed in the following tables. See Notes 9, 12 and 20 for information regarding pension, long-term debt and lease commitments, respectively.

Evergy
	2022		2023		2024		2025		2026		After 2026			Total
Purchase commitments	(millions)
Fuel	$	403.1	$	183.5	$	130.2	$	100.4	$	106.7		$	221.1		$	1,145.0
Power	63.0		63.6		58.0		58.4		58.4			294.2			595.6
Total fuel and power commitments	$	466.1	$	247.1	$	188.2	$	158.8	$	165.1		$	515.3		$	1,740.6

Evergy Kansas Central
	2022		2023		2024		2025		2026		After 2026			Total
Purchase commitments	(millions)
Fuel	$	232.4	$	102.6	$	83.3	$	69.4	$	72.6		$	121.3		$	681.6
Power	0.9		0.9		0.9		0.9		0.9			3.6			8.1
Total fuel and power commitments	$	233.3	$	103.5	$	84.2	$	70.3	$	73.5		$	124.9		$	689.7

Evergy Metro
	2022		2023		2024		2025		2026		After 2026			Total
Purchase commitments	(millions)
Fuel	$	145.3	$	73.7	$	43.3	$	28.4	$	31.4		$	99.8		$	421.9
Power	35.1		35.3		29.2		29.2		29.2			166.9			324.9
Total fuel and power commitments	$	180.4	$	109.0	$	72.5	$	57.6	$	60.6		$	266.7		$	746.8

Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.

15. GUARANTEES

In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.

At December 31, 2021, Evergy has provided $904.0 million of credit support for certain of its subsidiaries as follows:

•Evergy direct guarantees to Evergy Kansas Central and Evergy Metro counterparties for certain fuel supply contracts totaling $48.0 million, which expire in 2027; and

•Evergy's guarantee of Evergy Missouri West long-term debt totaling $856.0 million, which includes debt with maturity dates ranging from 2022 to 2043.

Evergy has also guaranteed Evergy Missouri West's commercial paper program. At December 31, 2021, Evergy Missouri West had $395.3 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded.

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16. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

In the normal course of business, Evergy Kansas Central, Evergy Metro and Evergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below.

Jointly-Owned Plants and Shared Services

Employees of Evergy Kansas Central and Evergy Metro manage Evergy Missouri West's business and operate its facilities at cost, including Evergy Missouri West's 18% ownership interest in Evergy Metro's Iatan Nos. 1 and 2.  Employees of Evergy Kansas Central manage Jeffrey Energy Center (JEC) and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. Employees of Evergy Metro manage La Cygne Station and operate its facilities at cost, including Evergy Kansas Central's 50% interest in La Cygne Station. Employees of Evergy Metro and Evergy Kansas Central also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services.

The operating expenses and capital costs billed for jointly-owned plants and shared services are detailed in the following table.

		2021		2020		2019
	(millions)
Evergy Kansas Central billings to Evergy Missouri West		$	32.5	$	37.6	$	24.9
Evergy Metro billings to Evergy Missouri West		142.1		168.7		172.8
Evergy Kansas Central billings to Evergy Metro		29.4		34.7		40.6
Evergy Metro billings to Evergy Kansas Central		134.7		130.8		154.9

Money Pool

Evergy Kansas Central, Evergy Metro and Evergy Missouri West are authorized to participate in the Evergy, Inc. money pool, which is an internal financing arrangement in which funds may be lent on a short-term basis between Evergy Kansas Central, Evergy Metro, Evergy Missouri West and Evergy, Inc. Evergy, Inc. can lend but not borrow under the money pool. The Evergy, Inc. money pool was amended in July 2021 to include Evergy Kansas Central as a participant.

At December 31, 2021, Evergy Metro had a $155.0 million outstanding receivable from Evergy Missouri West under the money pool. At December 31, 2020, Evergy Metro had a $100.0 million outstanding receivable from Evergy Missouri West under the money pool.

Related Party Net Receivables and Payables

The following table summarizes Evergy Kansas Central's and Evergy Metro's related party net receivables and payables.

	December 31
	2021		2020
Evergy Kansas Central	(millions)
Net receivable from (payable to) Evergy	$	(2.2)	$	0.1
Net payable to Evergy Metro	(14.5)		(21.7)
Net receivable from Evergy Missouri West	10.4		6.6
Evergy Metro
Net receivable from Evergy	$	8.7	$	15.7
Net receivable from Evergy Kansas Central	14.5		21.7
Net receivable from Evergy Missouri West	254.5		188.1

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Tax Allocation Agreement

Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. The following table summarizes Evergy Kansas Central's and Evergy Metro's income taxes receivable from (payable to) Evergy.

	December 31
	2021		2020
Evergy Kansas Central	(millions)
Income taxes receivable from Evergy	$	9.6	$	25.3
Evergy Metro
Income taxes receivable from (payable to) Evergy	$	(2.5)	$	3.2

17. SHAREHOLDERS' EQUITY

Evergy's authorized capital stock consists of 600 million shares of common stock, without par value, and 12 million shares of Preference Stock, without par value.

Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement

In February 2021, Evergy entered into a securities purchase agreement with an affiliate of Bluescape. Pursuant to the securities purchase agreement, an affiliate of Bluescape agreed to purchase 2,269,447 shares of Evergy’s common stock for approximately $113.2 million and to receive a warrant to purchase up to 3,950,000 additional shares of Evergy’s common stock. Under the terms of the warrant, Evergy will have the option to elect a net cash settlement with respect to the exercise of the warrant under certain circumstances, or to net settle in shares of Evergy’s common stock. The warrant expires three years from issuance and has an exercise price equal to $64.70 per share. Following the satisfaction of customary closing conditions, Evergy completed the sale of its common stock and warrant to the affiliate of Bluescape in April 2021 for $112.5 million, net of issuance costs of $0.7 million. The Executive Chairman of Bluescape, C. John Wilder, joined the Evergy Board in March 2021.

Evergy Registration Statements

In September 2021, Evergy filed an automatic registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in September 2024.

In September 2021, Evergy registered shares of its common stock with the SEC for its Dividend Reinvestment and Direct Stock Purchase Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market.

Evergy has registered shares of its common stock with the SEC for the Evergy, Inc. 401(k) Savings Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market.

Dividend Restrictions

Evergy depends on its subsidiaries to pay dividends on its common stock. The Evergy Companies have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels or the ability to pay dividends.

The KCC order authorizing the merger transaction requires Evergy to maintain consolidated common equity of at least 35% of total consolidated capitalization.

Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. Certain conditions in the MPSC and KCC orders authorizing the merger transaction also require Evergy Kansas Central and Evergy Metro to maintain consolidated common equity of at least 40% of total capitalization. Other conditions in the MPSC and KCC merger orders require Evergy Kansas

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Central, Evergy Metro and Evergy Missouri West to maintain credit ratings of at least investment grade. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's credit ratings are downgraded below the investment grade level as a result of their affiliation with Evergy or any of Evergy's affiliates, the impacted utility shall not pay a dividend to Evergy without KCC or MPSC approval or until the impacted utility's investment grade credit rating has been restored.

The master credit facility of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West and the note purchase agreements for certain Evergy Missouri West senior notes contain covenants requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times.

As of December 31, 2021, all of Evergy's and Evergy Kansas Central's retained earnings and net income were free of restrictions and Evergy Metro had a retained earnings restriction of $386.9 million. As of December 31, 2021, Evergy's subsidiaries had restricted net assets of approximately $5.7 billion. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.

18. VARIABLE INTEREST ENTITIES

In determining the primary beneficiary of a VIE, the Evergy Companies assess the entity's purpose and design, including the nature of the entity's activities and the risks that the entity was designed to create and pass through to its variable interest holders. A reporting enterprise is deemed to be the primary beneficiary of a VIE if it has (a) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. The trust holding an 8% interest in JEC was a VIE until the expiration of a purchase option in July 2017 and then became a VIE again during 2019 until the 8% interest was purchased by Evergy Kansas Central in August 2019. The trust holding Evergy Kansas Central's 50% interest in La Cygne Unit 2 is a VIE and Evergy Kansas Central remains the primary beneficiary of the trust.

All involvement with entities by the Evergy Companies is assessed to determine whether such entities are VIEs and, if so, whether or not the Evergy Companies are the primary beneficiaries of the entities. The Evergy Companies also continuously assess whether they are the primary beneficiary of the VIE with which they are involved. Prospective changes in facts and circumstances may cause identification of the primary beneficiary to be reconsidered.

8% Interest in JEC

Under an agreement that expired in August 2019, Evergy Kansas Central leased an 8% interest in JEC from a trust. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 8% interest in JEC and lease it to a third party and did not hold any other assets. Evergy Kansas Central met the requirements to be considered the primary beneficiary of the trust until July 2017, when a contractual option to purchase the 8% interest in the plant covered by the lease expired. Accordingly, Evergy Kansas Central deconsolidated the trust in 2017. Evergy Kansas Central then reconsolidated the trust as a VIE in the first quarter of 2019 following an agreement with the owner to purchase the 8% interest in JEC from the trust in August 2019. Evergy Kansas Central deconsolidated the trust for the final time following the closing of this purchase in August 2019.

50% Interest in La Cygne Unit 2

Under an agreement that expires in September 2029, Evergy Kansas Central entered into a sale-leaseback transaction with a trust under which the trust purchased Evergy Kansas Central's 50% interest in La Cygne Unit 2 and subsequently leased it back to Evergy Kansas Central. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in La Cygne Unit 2 and lease it back to Evergy Kansas Central and does not hold any other assets. Evergy Kansas Central meets the requirements to be considered the primary beneficiary of the trust. In determining the primary beneficiary of the trust, Evergy Kansas Central concluded that the activities of the trust that most significantly impact its economic performance and that Evergy Kansas Central has the power to direct include (1) the operation

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and maintenance of the 50% interest in La Cygne Unit 2 and (2) Evergy Kansas Central's ability to exercise a purchase option at the end of the agreement at the lesser of fair value or a fixed amount. Evergy Kansas Central has the potential to receive benefits from the trust that could potentially be significant if the fair value of the 50% interest in La Cygne Unit 2 at the end of the agreement is greater than the fixed amount.

The following table summarizes the assets and liabilities related to the VIE described above that are recorded on Evergy's and Evergy Kansas Central's consolidated balance sheets.

	December 31
	2021		2020
Assets:	(millions)
Property, plant and equipment of variable interest entities, net	$	147.8	$	154.9
Liabilities:
Current maturities of long-term debt of variable interest entities	$	—	$	18.8
Accrued interest(a)	—		0.1

(a)Included in accrued interest on Evergy's and Evergy Kansas Central's consolidated balance sheets.

All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit of Evergy and Evergy Kansas Central. Evergy and Evergy Kansas Central have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Evergy Kansas Central did not record any gain or loss upon the initial consolidation of the VIE.

19. TAXES

Components of income tax expense are detailed in the following tables.

Evergy	2021		2020		2019
Current income taxes	(millions)
Federal	$	15.6	$	(26.8)	$	(39.5)
State	(0.4)		2.1		15.0
Total	15.2		(24.7)		(24.5)
Deferred income taxes
Federal	92.8		73.1		93.2
State	14.7		59.8		27.5
Total	107.5		132.9		120.7
Investment tax credit
Deferral	0.4		—		5.2
Amortization	(5.7)		(6.0)		(4.4)
Total	(5.3)		(6.0)		0.8
Income tax expense	$	117.4	$	102.2	$	97.0

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Evergy Kansas Central	2021		2020		2019
Current income taxes	(millions)
Federal	$	53.3	$	14.5	$	37.9
State	(0.2)		(5.3)		2.6
Total	53.1		9.2		40.5
Deferred income taxes
Federal	3.8		(16.7)		(8.9)
State	(1.2)		168.1		18.4
Total	2.6		151.4		9.5
Investment tax credit
Deferral	0.3		—		5.2
Amortization	(4.3)		(4.8)		(3.1)
Total	(4.0)		(4.8)		2.1
Income tax expense	$	51.7	$	155.8	$	52.1

Evergy Metro	2021		2020		2019
Current income taxes	(millions)
Federal	$	39.2	$	(0.2)	$	43.9
State	3.2		10.8		22.4
Total	42.4		10.6		66.3
Deferred income taxes
Federal	6.5		29.8		(24.5)
State	4.8		(32.2)		(5.0)
Total	11.3		(2.4)		(29.5)
Investment tax credit
Amortization	(1.3)		(1.1)		(1.1)
Total	(1.3)		(1.1)		(1.1)
Income tax expense	$	52.4	$	7.1	$	35.7

Effective Income Tax Rates

Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables.

Evergy	2021		2020		2019
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(1.0)		(1.6)		(1.8)
State income taxes	1.0		4.3		5.0
Flow through depreciation for plant-related differences	(5.4)		(5.3)		(4.5)
Federal tax credits	(2.8)		(4.6)		(4.9)
Non-controlling interest	(0.3)		(0.3)		(0.4)
AFUDC equity	(0.6)		(0.5)		(0.1)
Amortization of federal investment tax credits	(0.4)		(0.6)		(0.5)
Changes in uncertain tax positions, net	—		—		(0.2)
Federal or state tax rate change	—		1.9		—
Valuation allowance	—		(0.2)		(1.0)
Stock compensation	—		(0.1)		0.1
Officer compensation limitation	0.5		0.2		0.1
Other	(0.4)		(0.2)		(0.4)
Effective income tax rate	11.6	%	14.0	%	12.4	%

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Evergy Kansas Central	2021		2020		2019
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(1.7)		(2.8)		(3.3)
State income taxes	(0.4)		3.8		5.3
Flow through depreciation for plant-related differences	(3.0)		(0.1)		(0.1)
Federal tax credits	(5.0)		(7.1)		(7.4)
Non-controlling interest	(0.5)		(0.6)		(0.8)
AFUDC equity	(0.6)		(0.5)		(0.1)
Amortization of federal investment tax credits	(0.5)		(0.7)		(0.7)
Changes in uncertain tax positions, net	—		—		(0.4)
Federal or state tax rate change	—		27.8		—
Valuation allowance	—		—		(0.4)
Stock compensation	(0.1)		(0.1)		(0.1)
Officer compensation limitation	0.3		—		—
Other	(0.1)		(0.9)		(0.3)
Effective income tax rate	9.4	%	39.8	%	12.7	%

Evergy Metro	2021		2020		2019
Federal statutory income tax	21.0	%	21.0	%	21.0	%
COLI policies	(0.2)		(0.3)		(0.2)
State income taxes	1.7		4.9		4.7
Flow through depreciation for plant-related differences	(7.8)		(10.0)		(9.4)
Federal tax credits	(0.2)		(1.9)		(2.5)
AFUDC equity	(0.7)		(0.5)		(0.2)
Amortization of federal investment tax credits	(0.4)		(0.4)		(0.4)
Federal or state tax rate change	—		(10.5)		—
Stock compensation	—		(0.4)		—
Officer compensation limitation	0.9		0.4		0.3
Other	0.1		—		(1.0)
Effective income tax rate	14.4	%	2.3	%	12.3	%

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Deferred Income Taxes

The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table.

	December 31
	2021						2020
	Evergy		Evergy Kansas Central		Evergy Metro		Evergy		Evergy Kansas Central		Evergy Metro
Deferred tax assets:	(millions)
Tax credit carryforward	$	375.2	$	206.3	$	162.1	$	379.6	$	176.5	$	195.9
Income taxes refundable to customers, net	336.6		168.5		123.8		418.2		237.5		132.8
Deferred employee benefit costs	158.3		84.8		86.8		227.6		105.4		117.9
Net operating loss carryforward	40.2		—		—		51.0		—		0.2
Deferred state income taxes	146.9		101.0		38.6		145.9		101.7		37.8
Accrued liabilities	157.6		71.3		56.4		152.7		61.8		61.0
Other	200.0		100.6		59.6		181.0		91.4		44.8
Total deferred tax assets before   valuation allowance	1,414.8		732.5		527.3		1,556.0		774.3		590.4
Valuation allowances	(12.8)		—		—		(14.4)		—		—
Total deferred tax assets, net	1,402.0		732.5		527.3		1,541.6		774.3		590.4
Deferred tax liabilities:
Plant-related	(2,701.1)		(1,308.7)		(996.7)		(2,693.7)		(1,341.2)		(972.1)
Deferred employee benefit costs	(96.8)		(52.9)		(43.5)		(171.4)		(75.6)		(76.3)
ARO regulatory assets	(133.7)		(53.9)		(49.9)		(136.7)		(49.9)		(54.3)
Acquisition premium	(43.9)		(43.9)		—		(46.9)		(46.9)		—
Other regulatory assets	(152.1)		(53.3)		(20.4)		(28.8)		(2.8)		(16.4)
Other	(136.3)		(87.7)		(22.9)		(128.9)		(82.4)		(30.1)
Total deferred tax liabilities	(3,263.9)		(1,600.4)		(1,133.4)		(3,206.4)		(1,598.8)		(1,149.2)
Net deferred income tax liabilities	$	(1,861.9)	$	(867.9)	$	(606.1)	$	(1,664.8)	$	(824.5)	$	(558.8)

Tax Credit Carryforwards

At December 31, 2021 and 2020, Evergy had $373.6 million and $379.6 million, respectively, of federal general business income tax credit carryforwards.  At December 31, 2021 and 2020, Evergy Kansas Central had $204.7 million and $176.5 million, respectively, of federal general business income tax credit carryforwards. At December 31, 2021 and 2020, Evergy Metro had $162.1 million and $195.9 million, respectively, of federal general business income tax credit carryforwards.  The carryforwards for Evergy, Evergy Kansas Central and Evergy Metro relate primarily to wind production tax credits and advanced coal investment tax credits and expire in the years 2022 to 2041. Approximately $0.1 million of Evergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of Evergy Missouri West.  Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.1 million of the federal income tax benefit.

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The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2021 are detailed in the following table.

	Amount of Benefit
Year of Origin	Evergy		Evergy Kansas Central		Evergy Metro
	(millions)
2004	0.1		—		—
2005	0.1		—		—
2006	0.1		—		—
2007	0.1		—		—
2009	38.2		0.2		37.9
2010	18.3		—		18.2
2011	13.3		—		13.2
2012	12.8		2.0		10.7
2013	24.3		11.3		12.9
2014	24.1		10.7		13.0
2015	24.7		10.9		13.2
2016	27.1		11.0		12.4
2017	43.9		35.1		8.2
2018	43.9		36.3		7.5
2019	37.7		30.9		6.7
2020	35.9		28.3		7.4
2021	29.0		28.0		0.8
	$	373.6	$	204.7	$	162.1

Net Operating Loss Carryforwards

At December 31, 2021 and 2020, Evergy had $33.6 million and $42.2 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards.  Approximately $7.1 million of Evergy's tax benefits at December 31, 2021 are related to NOLs that were acquired in the Evergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these federal NOL carryforwards to expire unutilized and has provided a valuation allowance against $7.1 million of the federal income tax benefit. The federal NOL carryforwards expire in years 2023 to 2024.  

The year of origin of Evergy's related tax benefit amounts for federal NOL carryforwards as of December 31, 2021 are detailed in the following table.

Year of Origin	Amount of Benefit
	(millions)
2005	$	1.9
2006	31.7
	$	33.6

In addition, Evergy also had deferred tax benefits of $6.6 million and $8.8 million related to state NOLs as of December 31, 2021 and 2020, respectively.  Evergy Metro had deferred tax benefits of $0.2 million related to state NOLs as of 2020. The state NOL carryforwards expire in years 2022 to 2038. Evergy does not expect to utilize $5.6 million of NOLs before the expiration date of the carryforwards of NOLs in certain states. Therefore, a valuation allowance has been provided against $5.6 million of state tax benefits.

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Alternative Minimum Tax (AMT) Carryforwards

At December 31, 2021, Evergy and Evergy Kansas Central had $1.6 million of federal AMT carryforwards.

Valuation Allowances

Evergy is required to assess the ultimate realization of deferred tax assets using a "more likely than not" assessment threshold.  This assessment takes into consideration tax planning strategies within Evergy's control.  As a result of this assessment, Evergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit carryforwards. During 2021, $1.5 million of tax benefit was recorded in continuing operations primarily related to utilization or expiration of certain state NOL carryforwards.

Uncertain Tax Positions

Evergy is considered open to U.S. federal examination for years after 2009 due to the carryforward of net operating losses and general business income tax credits. With few exceptions, Evergy is no longer subject to state and local tax examinations by tax authorities for years before 2016. As of December 31, 2021, Evergy does not have any significant income tax issues under examination.

Kansas Tax Reform

In May 2020, the state of Kansas exempted certain public utilities, including Evergy Kansas Central and Evergy Metro, from Kansas corporate income tax beginning in 2021 and authorized the KCC to approve changes in rates related to increases or decreases in federal or state income tax rates.

As a result of the exemption from Kansas corporate income tax, the Evergy Companies revalued their deferred income tax assets and liabilities in May 2020. Evergy decreased its net deferred income tax liabilities by $233.8 million, primarily consisting of a $400.4 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $31.7 million tax gross-up adjustment on this amount for ratemaking purposes and $13.8 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes.

Evergy Kansas Central decreased its net deferred income tax liabilities by $17.6 million, primarily consisting of a $293.7 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $17.3 million tax gross-up adjustment on this amount for ratemaking purposes; partially offset by a decrease to unamortized investment tax credits of $183.6 million due to the revaluation of certain Kansas income tax credits and a $16.9 million tax gross-up adjustment on this amount for ratemaking purposes and $109.0 million of income tax expense primarily related to the revaluation of deferred income taxes that will not be recovered from customers in future rates.

Evergy Metro decreased its net deferred income tax liabilities by $152.9 million, primarily consisting of a $106.7 million adjustment for the revaluation of deferred income tax assets and liabilities included in rate base and a $14.4 million tax gross-up adjustment on this amount for ratemaking purposes and $32.2 million of income tax benefit primarily related to the revaluation of deferred income taxes that will not be refunded to customers in future rates.

The changes to the Evergy Companies' net deferred income tax liabilities included in rate base were offset by corresponding changes in regulatory liabilities. The net regulatory liabilities will be refunded to customers in future rates by amortizing the amounts related to plant assets over the remaining useful life of the assets, and amortizing the amounts related to other items over a period to be determined in a future rate case. The changes to the Evergy Companies' unamortized investment tax credits were related to the portion of certain Kansas income tax credits that are not expected to be used after December 31, 2020. The amounts of income tax expense (benefit) recognized by the Evergy Companies related to the revaluation of deferred income taxes that will not be recovered from or refunded to customers in future rates primarily pertain to deferred tax adjustments related to the difference between Evergy's consolidated tax rate and the statutory tax rates used for setting rates at Evergy Kansas Central, Evergy Metro and Evergy Missouri West as well as deferred income tax adjustments related to non-regulated operations.

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Prior to 2021, Evergy Kansas Central and Evergy Metro recovered the cost of Kansas corporate income taxes in rates from their customers at the statutory rate of 7%. In accordance with the provisions of the income tax exemption, Evergy Metro and Evergy Kansas Central filed a joint application with the KCC in July 2020 to reduce their retail rates to reflect their exemption from Kansas corporate income taxes beginning in 2021. In the joint application, Evergy Metro requested to implement its rate reduction in one phase, effective January 1, 2021, and Evergy Kansas Central requested to implement its rate reduction in three phases, effective January 1 in each of 2021, 2022 and 2023. In November 2020, the KCC approved Evergy Kansas Central's and Evergy Metro's joint application.

20. LEASES

The Evergy Companies lease office buildings, computer equipment, vehicles, rail cars, generating plant and other property and equipment, including rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for the other owners' proportionate share of the costs. Under GAAP, a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Evergy Companies assess a contract as being or containing a lease if the contract identifies property, plant and equipment, provides the lessee the right to obtain substantially all of the economic benefits from use of the property, plant and equipment and provides the lessee the right to direct the use of the property, plant and equipment.

The Evergy Companies have entered into several agreements to purchase energy through renewable purchase power agreements that are accounted for as leases that commenced prior to the application of Topic 842-Leases. Due to the intermittent nature of renewable generation, these leases have significant variable lease payments not included in the initial and subsequent measurement of the lease liability. Variable lease payments are expensed as incurred. In addition, certain other contracts contain payment for activity that transfers a separate good or service such as utilities or common area maintenance. The Evergy Companies have elected a practical expedient permitted by GAAP to not separate such components of the lease from other lease components for all leases.

The Evergy, Evergy Kansas Central and Evergy Metro leases have remaining terms ranging from 1 to 17 years, 1 to 17 years and 1 to 11 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on the Evergy Companies’ balance sheets. Some leases have options to renew the lease or terminate early at the election of the Evergy Companies. Judgment is applied at lease commencement to determine the reasonably certain lease term based on then-current assumptions about use of the leased asset, market conditions and terms in the contract. The judgment applied to determine the lease term can significantly impact the measurement of the lease liability and right-of-use asset and lease classification.

The Evergy Companies typically discount lease payments over the term of the lease using their incremental borrowing rates at lease commencement to measure its initial and subsequent lease liability. For leases that existed at the initial application of Topic 842, the Evergy Companies used the incremental borrowing rates that corresponded to the remaining lease term as of January 1, 2019.

Leases may be classified as either operating leases or finance leases. The lease classification is based on assumptions of the lease term and discount rate, as discussed above, and the fair market value and economic life of the leased asset. Operating leases recognize a consistent expense each period over the lease term, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization of the right-of-use asset. Finance leases are treated as operating leases for rate-making purposes and as such, the Evergy Companies defer to a regulatory asset or liability any material differences between expense recognition and the timing of payments in order to match what is being recovered in customer rates.

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The Evergy Companies’ lease expense is detailed in the following table.

Evergy	2021		2020		2019
Finance lease costs	(millions)
Amortization of right-of-use assets	$	5.1	$	7.7	$	5.2
Interest on lease liabilities	2.5		3.1		2.9
Operating lease costs	21.8		22.9		23.8
Short-term lease costs	5.9		2.1		4.0
Variable lease costs for renewable purchase power agreements	280.3		296.6		313.0
Total lease costs	$	315.6	$	332.4	$	348.9

Evergy Kansas Central	2021		2020		2019
Finance lease costs	(millions)
Amortization of right-of-use assets	$	4.5	$	7.2	$	5.0
Interest on lease liabilities	2.4		2.8		2.7
Operating lease costs	12.9		11.9		13.2
Short-term lease costs	1.8		0.5		1.2
Variable lease costs for renewable purchase power agreements	145.8		135.6		130.8
Total lease costs	$	167.4	$	158.0	$	152.9

Evergy Metro	2021		2020		2019
Finance lease costs	(millions)
Amortization of right-of-use assets	$	0.4	$	0.3	$	0.1
Interest on lease liabilities	0.1		0.1		0.1
Operating lease costs	9.0		9.3		9.2
Short-term lease costs	3.0		1.5		2.6
Variable lease costs for renewable purchase power agreements	101.0		112.2		129.2
Total lease costs	$	113.5	$	123.4	$	141.2

Supplemental cash flow information related to the Evergy Companies' leases is detailed in the following table.

Evergy	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:	(millions)
Operating cash flows from operating leases	$	20.7	$	22.2	$	21.7
Operating cash flows from finance leases	2.6		2.8		2.8
Financing cash flows from finance leases	5.3		5.6		5.0
Right-of-use assets obtained in exchange for new operating lease liabilities	16.4		6.9		10.4
Right-of-use assets obtained in exchange for new finance lease liabilities	1.4		5.6		8.3

Evergy Kansas Central	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:	(millions)
Operating cash flows from operating leases	$	11.8	$	12.9	$	13.7
Operating cash flows from finance leases	2.4		2.5		2.6
Financing cash flows from finance leases	4.7		5.1		4.8
Right-of-use assets obtained in exchange for new operating lease liabilities	7.1		6.6		6.1
Right-of-use assets obtained in exchange for new finance lease liabilities	1.4		4.0		8.3

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Evergy Metro	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:	(millions)
Operating cash flows from operating leases	$	10.4	$	10.8	$	9.9
Operating cash flows from finance leases	0.1		0.1		0.1
Financing cash flows from finance leases	0.5		0.4		0.1
Right-of-use assets obtained in exchange for new operating lease liabilities	9.3		0.3		2.4
Right-of-use assets obtained in exchange for new finance lease liabilities	—		1.6		—

Finance Leases

Right-of-use assets for finance leases are included in property, plant and equipment on the Evergy Companies’ balance sheets. Lease liabilities for finance leases are included in other current and other long-term liabilities. Payments and other supplemental information for finance leases as of December 31, 2021, are detailed in the following table.

	Evergy			Evergy Kansas Central			Evergy Metro
	(millions)
2022	$	7.8		$	7.1		$	0.6
2023	6.7			5.9			0.6
2024	5.5			4.7			0.6
2025	4.7			4.2			0.3
2026	4.4			3.9			0.2
After 2026	38.5			37.8			0.3
Total finance lease payments	67.6			63.6			2.6
Amounts representing imputed interest	(21.3)			(20.6)			(0.4)
Present value of lease payments	46.3			43.0			2.2
Less: current portion	(5.4)			(4.9)			(0.5)
Total long-term obligations under finance leases	$	40.9		$	38.1		$	1.7
Right-of-use assets under finance leases included in property, plant and equipment, net on the consolidated balance sheets	$	310.3		$	50.6		$	2.2
Weighted-average remaining lease term (years)	13.3			13.9			5.0
Weighted-average discount rate	5.6		%	5.6		%	5.1		%

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Operating Leases

Right-of-use assets for operating leases are included in other long-term assets on the Evergy Companies’ balance sheets. Lease liabilities for operating leases are included in other current and other long-term liabilities. Lease payments and other supplemental information for operating leases as of December 31, 2021, are detailed in the following table.

	Evergy			Evergy Kansas Central			Evergy Metro
	(millions)
2022	$	18.8		$	9.4		$	9.2
2023	15.3			6.5			8.6
2024	12.5			4.3			7.9
2025	8.5			2.2			6.4
2026	5.9			0.7			5.4
After 2026	30.3			0.1			30.3
Total operating lease payments	91.3			23.2			67.8
Amounts representing imputed interest	(7.3)			(1.0)			(6.3)
Present value of lease payments	84.0			22.2			61.5
Less: current portion	(17.1)			(9.0)			(8.0)
Total long-term obligations under operating leases	$	66.9		$	13.2		$	53.5
Right-of-use assets under operating leases included in other assets on the consolidated balance sheets	$	90.7		$	29.0		$	46.7
Weighted-average remaining lease term (years)	7.6			3.0			9.3
Weighted-average discount rate	2.2		%	2.4		%	2.1		%

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

EVERGY

Disclosure Controls and Procedures

Evergy carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2021, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy.  Under the supervision and with the

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participation of Evergy’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy’s internal control over financial reporting as of December 31, 2021.  Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has concluded that, as of December 31, 2021, Evergy’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this annual report on Form 10-K, has issued its attestation report on Evergy’s internal control over financial reporting, which is included below.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Evergy, Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2021, of the Company and our report dated February 24, 2022, expressed an unqualified opinion on those financial statements and financial statement schedules.

Basis for Opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/DELOITTE & TOUCHE LLP

Kansas City, Missouri  

February 24, 2022

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EVERGY KANSAS CENTRAL

Disclosure Controls and Procedures

Evergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy Kansas Central's management, including the chief executive officer and chief financial officer, and Evergy Kansas Central's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Kansas Central were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Kansas Central’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2021, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Kansas Central.  Under the supervision and with the participation of Evergy Kansas Central’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Kansas Central’s internal control over financial reporting as of December 31, 2021. Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has concluded that, as of December 31, 2021, Evergy Kansas Central’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  

EVERGY METRO

Disclosure Controls and Procedures

Evergy Metro carried out an evaluation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).  This evaluation was conducted under the supervision, and with the participation, of Evergy Metro's management, including the chief executive officer and chief financial officer, and Evergy Metro's disclosure committee.  Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Metro have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Metro were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in Evergy Metro’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2021, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Metro.  Under the supervision and with the participation of Evergy Metro’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Metro’s internal control over financial reporting as of December 31, 2021.  Management

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used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis.  Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.  Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management has concluded that, as of December 31, 2021, Evergy Metro’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.  

ITEM 9B.  OTHER INFORMATION

Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, http://investors.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Evergy's website is not part of this document.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

Information required by Items 10-14 of Part III of this Form 10-K with respect to Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 2022 Annual Meeting of Shareholders (Proxy Statement) on or before April 29, 2022.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Evergy

The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference from the following sections of the Proxy Statement:

•Information regarding the directors of Evergy will be contained in the Proxy Statement section titled "Election of Directors."

•If applicable, information regarding compliance with Section 16(a) of the Exchange Act will be contained in the Proxy Statement section titled "Security Ownership of Directors, Management and Beneficial Owners."

•Information regarding the Audit Committee of Evergy will be contained in the Proxy Statement section titled "Corporate Governance Matters - Board Structure - Audit Committee."

•Information regarding Evergy's Code of Ethics will be contained in the Proxy Statement section titled "Corporate Governance Practices - Code of Ethics."

Information required by this item regarding Evergy's executive officers is contained in this report in Part I, Item 1 in "Information About Evergy's Executive Officers."

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Evergy Kansas Central and Evergy Metro

Other information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

ITEM 11. EXECUTIVE COMPENSATION

Evergy

The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections of the Proxy Statement: "Proxy Statement Summary and Highlights - Executive Compensation Highlights," "Director Compensation," "Executive Summary of Compensation Matters," "Compensation Discussion and Analysis," "Compensation Committee Report," "Executive Compensation Tables," "Director Independence" and "Other Matters - Compensation Committee Interlocks and Insider Participation."

Evergy Kansas Central and Evergy Metro

Other information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Evergy

The information required by this item regarding security ownership of the directors and executive officers of Evergy will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Security Ownership of Directors, Management and Beneficial Owners" section of the Proxy Statement.

Evergy Kansas Central and Evergy Metro

The information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

Equity Compensation Plans

Upon the consummation of the merger, Evergy assumed both Evergy Kansas Central's LTISA and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Term Incentive Plan. The renamed Evergy Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, director shares, director deferred share units, performance shares and other stock-based awards to directors, officers and other employees of Evergy.

In connection with the 2022 annual meeting of shareholders, Evergy is seeking shareholder approval to amend and restate the Evergy, Inc. Long-Term Incentive Plan, and increase the number of shares of common stock available for future issuance, among other things. Additional information required by this item can be found in "Proposal 3: Approval of the Amended and Restated Evergy Long-Term Incentive Plan" and "Appendix C" of the Proxy Statement.

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The following table provides information, as of December 31, 2021, regarding the number of common shares to be issued upon exercise of outstanding options, warrants and rights, their weighted average exercise price, and the number of shares of common stock remaining available for future issuance. The table excludes shares issued or issuable under any defined contribution savings plans.

								Number of securities
	Number of							remaining available
	securities							for future issuance
	to be issued upon			Weighted-average				under equity
	exercise of			exercise price of				compensation plans
	outstanding options,			outstanding options,				(excluding securities
	warrants and rights			warrants and rights				reflected in column (a))
Plan Category	(a)			(b)				(c)
Equity compensation plans approved by security holders (3)
Evergy Long-Term Incentive Plan		930,845	(1)		$	—	(2)		1,296,632
Equity compensation plans not approved by security holders		—			—				—
Total		930,845	(1)		$	—	(2)		1,296,632

(1)Includes 253,046 RSUs with time-based requirements, 513,715 RSUs with performance measures at target performance levels, 36,036 restricted share awards and director deferred share units for 128,048 shares of Evergy common stock outstanding at December 31, 2021.

(2)The RSUs, RSAs and director deferred share units have no exercise price and therefore are not reflected in the weighted-average exercise price.

(3) The Evergy Kansas Central, Inc. LTISA will not be used for future awards. As of December 31, 2021, there were approximately 312,568 units outstanding that were deferred pursuant to the Evergy Kansas Central, Inc. non-employee deferred compensation program. Deferred units will continue to receive deferred dividend equivalents in the form of additional deferred units until payouts pursuant to elections begin.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Evergy

The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Director Independence" and "Other Matters - Related Party Transactions" sections of the Proxy Statement.

Evergy Kansas Central and Evergy Metro

The information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Evergy

The information required by this item regarding the independent auditors of Evergy and its subsidiaries will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Ratification of Appointment of Deloitte & Touche LLP" (PCAOB ID No. 34) section of the Proxy Statement.

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Evergy Kansas Central and Evergy Metro

The Audit Committee of the Evergy Board functions as the Audit Committee of Evergy Kansas Central and Evergy Metro. The following tables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for 2021 and 2020 and for other services rendered during 2021 and 2020 on behalf of Evergy Kansas Central and Evergy Metro, as well as all out-of-pocket costs incurred in connection with these services:

Evergy Kansas Central	2021		2020
Fee Category
Audit Fees	$	1,852,798	$	2,025,969
Audit-Related Fees	50,734		—
Tax Fees	86,098		51,385
All Other Fees	—		—
Total Fees	$	1,989,630	$	2,077,354

Evergy Metro	2021		2020
Fee Category
Audit Fees	$	1,293,049	$	1,412,546
Audit-Related Fees	50,734		—
Tax Fees	29,219		40,799
All Other Fees	—		—
Total Fees	$	1,373,002	$	1,453,345

Audit Fees: Consists of fees billed for professional services rendered for the audits of the annual consolidated financial statements of Evergy Kansas Central and Evergy Metro and reviews of the interim condensed consolidated financial statements included in quarterly reports. Audit fees also include: services provided by Deloitte & Touche LLP in connection with statutory and regulatory filings or engagements; audit reports on audits of the effectiveness of internal control over financial reporting and other attest services, except those not required by statute or regulation; services related to filings with the SEC, including comfort letters, consents and assistance with and review of documents filed with the SEC; and accounting research in support of the audit.

Audit-Related Fees: Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of consolidated financial statements of Evergy Kansas Central and Evergy Metro and are not reported under "Audit Fees." These services include consultation concerning financial accounting and reporting standards.

Tax Fees: Consists of fees billed for tax compliance and related support of tax returns and other tax services, including assistance with tax audits, and tax research and planning.

All Other Fees: Consists of fees for all other services other than those described above.

Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services

The Audit Committee has adopted policies and procedures for the pre-approval of all audit services, audit-related services, tax services and other services to be provided by the independent registered public accounting firm for Evergy Kansas Central and Evergy Metro. Under these policies and procedures, the Audit Committee may pre-approve certain types of services, up to the aggregate fee levels it sets. Any proposed service within a pre-approved type of service that would cause the applicable fee level to be exceeded cannot be provided unless the Audit Committee either amends the applicable fee level or specifically approves the proposed service. The Audit Committee, as well, may specifically approve audit, audit-related, tax or other services on a case-by-case basis. Pre-approval is generally provided for up to one year, unless the Audit Committee specifically provides for a different period. Management provides quarterly updates to the Audit Committee regarding actual fees spent with respect to

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pre-approved services.  The Chair of the Audit Committee may pre-approve audit, audit-related, tax and other services provided by the independent registered public accounting firm as required between meetings and report such pre-approval at the next Audit Committee meeting.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statements

Evergy, Inc.		Page No.
a.	Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019	72
b.	Consolidated Balance Sheets - December 31, 2021 and 2020	73
c.	Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019	75
d.	Consolidated Statements of Changes in Equity for the years ended December 31, 2021, 2020 and 2019	76
e.	Notes to Consolidated Financial Statements	87
f.	Report of Independent Registered Public Accounting Firm	63
Evergy Kansas Central, Inc.
g.	Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019	77
h.	Consolidated Balance Sheets - December 31, 2021 and 2020	78
i.	Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019	80
j.	Consolidated Statements of Changes in Equity for the years ended December 31, 2021, 2020 and 2019	81
k.	Notes to Consolidated Financial Statements	87
l.	Report of Independent Registered Public Accounting Firm	66
Evergy Metro, Inc.
m.	Consolidated Statements of Comprehensive Income for the years ended December 31, 2021, 2020 and 2019	82
n.	Consolidated Balance Sheets - December 31, 2021 and 2020	83
o.	Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019	85
p.	Consolidated Statements of Changes in Equity for the years ended December 31, 2021, 2020 and 2019	86

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q.	Notes to Consolidated Financial Statements	87
r.	Report of Independent Registered Public Accounting Firm	69

Financial Statement Schedules

	Evergy, Inc.
a.	Schedule I - Parent Company Financial Statements	178
b.	Schedule II - Valuation and Qualifying Accounts and Reserves	182
	Evergy Kansas Central, Inc.
c.	Schedule II - Valuation and Qualifying Accounts and Reserves	182
	Evergy Metro, Inc.
d.	Schedule II - Valuation and Qualifying Accounts and Reserves	183

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Exhibits 

Exhibit Number		Description of Document	Registrant
2.1	*	Agreement and Plan of Merger, dated May 29, 2016, by and among Evergy Kansas Central, Inc. (formerly Westar Energy Inc.), Great Plains Energy Incorporated and, from and after its accession thereto, Merger Sub (as defined therein) (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on May 31, 2016).	Evergy Evergy Kansas Central
2.2	*	Amended and Restated Merger Agreement, dated July 9, 2017, by and among Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), Great Plains Energy Incorporated, Monarch Energy Holding, Inc., King Energy, Inc. and, solely for the purposes set forth therein, GP Star, Inc. (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on July 10, 2017).	Evergy Evergy Kansas Central
3.1	*	Amended and Restated Articles of Incorporation of Evergy, Inc., effective June 4, 2018 (Exhibit 3.1 to Form 8-K filed on June 4, 2018).	Evergy
3.2	*	Amended and Restated By-laws of Evergy, Inc., effective as of February 15, 2022 (Exhibit 3.1 to Evergy's Form 8-K filed on February 22, 2022).	Evergy
3.3	*	Amended and Restated Articles of Consolidation of Evergy Metro, Inc., as amended September 16, 2019 (Exhibit 3.1 to Evergy Metro's Form 10-Q for the quarter ended September 30, 2019).	Evergy Metro
3.4	*	Amended and Restated By-laws of Evergy Metro, Inc., effective February 28, 2020 (Exhibit 3.3 to Evergy Metro's Form 8-K filed on March 2, 2020).	Evergy Metro
3.5	*	Amended and Restated Articles of Incorporation of Evergy Kansas Central, Inc., as amended September 16, 2019 (Exhibit 3.3 to Evergy Kansas Central's Form 10-Q for the quarter ended September 30, 2019).	Evergy Kansas Central
3.6	*	Amended and Restated By-laws of Evergy Kansas Central, Inc., effective February 28, 2020 (Exhibit 3.2 to Evergy Kansas Central's Form 8-K filed on March 2, 2020).	Evergy Kansas Central
4.1	*	Indenture, dated June 1, 2004, between Evergy. Inc. (successor to Great Plains Energy Incorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.4 to Great Plains Energy's Form 8-A/A filed on June 14, 2004).	Evergy
4.2	*	First Supplemental Indenture, dated June 14, 2004, between Evergy. Inc. (successor to Great Plains Energy Incorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.5 to Great Plains Energy's Form 8-A/A filed on June 14, 2004).	Evergy
4.3	*	Second Supplemental Indenture, dated September 25, 2007, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on September 26, 2007).	Evergy

163

4.4	*	Third Supplemental Indenture, dated August 13, 2010, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 13, 2010).	Evergy
4.5	*	Fourth Supplemental Indenture, dated May 19, 2011, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on May 19, 2011).	Evergy
4.6	*	Fifth Supplemental Indenture, dated March 9, 2017, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Trust Company, N.A. as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 9, 2017).	Evergy
4.7	*	Sixth Supplemental Indenture, dated June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on June 4, 2018).	Evergy
4.8	*	Seventh Supplemental Indenture, dated as of September 9, 2019 between Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on September 9, 2019).	Evergy
4.9	*	Subordinated Indenture, dated May 18, 2009, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on May 19, 2009).	Evergy
4.10	*	Supplemental Indenture No. 1, dated May 18, 2009, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.2 to Great Plains Energy's Form 8-K filed on May 19, 2009).	Evergy
4.11	*	Supplemental Indenture No. 2, dated March 22, 2012, between Evergy, Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 23, 2012).	Evergy
4.12	*	Supplemental Indenture No. 3, dated June 4, 2018, by and among Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on June 4, 2018).	Evergy
4.13	*	Indenture, dated August 24, 2001, between Evergy Missouri West, Inc. (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(d) to Registration Statement on Form S-3 (File No. 333-68400) filed by Aquila, Inc. on August 27, 2001).	Evergy

164

4.14	*	Second Supplemental Indenture, dated July 3, 2002, between Missouri West, Inc. (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(c) to Form S-4 (File No. 333-100204) filed by Aquila, Inc. on September 30, 2002).	Evergy
4.15	*	General Mortgage and Deed of Trust, dated December 1, 1986, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.12 to Evergy Metro's Form 10-K for the year ended December 31, 2017).	Evergy Evergy Metro
4.16	*	Fifth Supplemental Indenture, dated September 1, 1992, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.13 to Evergy Metro's Form 10-K for the year ended December 31, 2017).	Evergy Evergy Metro
4.17	*	Seventh Supplemental Indenture, dated October 1, 1993, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.14 to Evergy Metro's Form 10-K for the year ended December 31, 2017).	Evergy Evergy Metro
4.18	*	Eighth Supplemental Indenture, dated December 1, 1993, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.15 to Evergy Metro's Form 10-K for the year ended December 31, 2017).	Evergy Evergy Metro
4.19	*	Eleventh Supplemental Indenture, dated August 15, 2005, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.2 to Evergy Metro's Form 10-Q for the quarter ended September 30, 2005).	Evergy Evergy Metro
4.20	*	Thirteenth Supplemental Indenture, dated March 1, 2009, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.3 to Evergy Metro's Form 8-K filed on March 24, 2009).	Evergy Evergy Metro
4.21	*	Fourteenth Supplemental Indenture, dated March 1, 2009, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.4 to Evergy Metro's Form 8-K filed on March 24, 2009).	Evergy Evergy Metro
4.22	*	Fifteenth Supplemental Indenture, dated June 30, 2011, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy Metro's Form 10-Q for the quarter ended June 30, 2011).	Evergy Evergy Metro

165

4.23	*	Sixteenth Supplemental Indenture, March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) UMB Bank N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.3 to Evergy's Form 8-K filed on March 14, 2019).	Evergy Evergy Metro
4.24	*	Seventeenth Supplemental Indenture, dated March 27, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on March 27, 2019).	Evergy Evergy Metro
4.25	*	Eighteenth Supplemental Indenture, dated as of May 26, 2020, between Evergy Metro and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on May 26, 2020).	Evergy Evergy Metro
4.26	*	Indenture, dated December 1, 2000, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4(a) to Evergy Metro's Form 8-K filed on December 18, 2000).	Evergy Evergy Metro
4.27	*	Indenture, dated March 1, 2002, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4.1.b. to Evergy Metro's Form 10-Q for the quarter ended March 31, 2002).	Evergy Evergy Metro
4.28	*	Supplemental Indenture No. 1, dated November 15, 2005, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York, as trustee (Exhibit 4.2.j to Evergy Metro's Form 10-K for the year ended December 31, 2005).	Evergy Evergy Metro
4.29	*	Supplemental Indenture No. 2, dated March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon, as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on March 14, 2019).	Evergy Evergy Metro
4.30	*	Indenture, dated May 1, 2007, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 4, 2007).	Evergy Evergy Metro
4.31	*	Supplemental Indenture No. 1, dated June 4, 2007, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on June 4, 2007).	Evergy Evergy Metro
4.32	*	Supplemental Indenture No. 2, dated March 11, 2008, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on March 11, 2008).	Evergy Evergy Metro

166

4.33	*	Supplemental Indenture No. 3, dated September 20, 2011, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on September 20, 2011).	Evergy Evergy Metro
4.34	*	Supplemental Indenture No. 4, dated March 14, 2013, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2013).	Evergy Evergy Metro
4.35	*	Supplemental Indenture No. 5, dated August 18, 2015, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on August 18, 2015).	Evergy Evergy Metro
4.36	*	Supplemental Indenture No. 6, dated June 15, 2017, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 15, 2017).	Evergy Evergy Metro
4.37	*	Supplemental Indenture No. 7, dated March 1, 2018, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 1, 2018).	Evergy Evergy Metro
4.38	*	Supplemental Indenture No. 8, dated March 1, 2019, between Evergy Metro, Inc. (formerly Kansas City Power & Light Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2019).	Evergy Evergy Metro
4.39	*	Note Purchase Agreement, dated August 16, 2013, among Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy, Inc. and the purchasers party thereto (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 19, 2013).	Evergy
4.40	*	Note Purchase Agreement dated February 12, 2019, among Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy, Inc. and the purchasers party thereto (Exhibit 4.5 to Evergy's Form 10-Q for the quarter ended March 31, 2019).	Evergy
4.41	*	Note Purchase Agreement, dated April 20, 2021, among Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy, Inc. and the purchasers party thereto (Exhibit 4.1 to Evergy's 8-K filed on April 20, 2021).	Evergy

167

4.42	*	Mortgage and Deed of Trust, dated July 1, 1939, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.35 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.43	*	First Supplemental Indenture, dated July 1, 1939, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.36 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.44	*	Second Supplemental Indenture, dated April 1, 1949, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.37 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.45	*	Sixth Supplemental Indenture, dated October 4, 1951, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.38 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.46	*	Fourteenth Supplemental Indenture, dated May 1, 1976, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.39 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.47	*	Twenty-Eighth Supplemental Indenture, dated July 1, 1992, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4.40 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
4.48	*	Thirty-Second Supplemental Indenture, dated April 15, 1994, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(s) to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 1994).	Evergy Evergy Kansas Central
4.49	*	Thirty-Fourth Supplemental Indenture, dated June 28, 2000, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(v) to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2000).	Evergy Evergy Kansas Central
4.50	*	Thirty-Sixth Supplemental Indenture, dated June 1, 2004, between Evergy Kansas Central, Inc. (formerly Westar Energy Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).	Evergy Evergy Kansas Central

168

4.51	*	Thirty-Eighth Supplemental Indenture, dated January 18, 2005, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.3 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).	Evergy Evergy Kansas Central
4.52	*	Thirty-Ninth Supplemental Indenture, dated June 30, 2005, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on July 1, 2005).	Evergy Evergy Kansas Central
4.53	*	Forty-Second Supplemental Indenture, dated March 1, 2012, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on February 29, 2012).	Evergy Evergy Kansas Central
4.54	*	Forty-Second Supplemental (Reopening) Indenture, dated May 17, 2012, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on May 16, 2012).	Evergy Evergy Kansas Central
4.55	*	Forty-Third Supplemental Indenture, dated March 28, 2013, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on March 22, 2013).	Evergy Evergy Kansas Central
4.56	*	Forty-Fourth Supplemental Indenture, dated August 19, 2013, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on August 14, 2013).	Evergy Evergy Kansas Central
4.57	*	Forty-Fifth Supplemental Indenture, dated November 13, 2015, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on November 6, 2015).	Evergy Evergy Kansas Central
4.58	*	Forty-Sixth Supplemental Indenture, dated June 20, 2016, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on June 17, 2016).	Evergy Evergy Kansas Central
4.59	*	Forty-Seventh Supplemental Indenture, dated March 6, 2017, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on March 3, 2017).	Evergy Evergy Kansas Central

169

4.60	*	Forty-Eighth Supplemental Indenture, dated June 4, 2018, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on June 4, 2018).	Evergy Evergy Kansas Central
4.61	*	Forty-Ninth Supplemental Indenture, dated August 19, 2019, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on August 19, 2019).	Evergy Evergy Kansas Central
4.62	*	Fiftieth Supplemental Indenture, dated as of April 9, 2020, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on April 9, 2020).	Evergy Evergy Kansas Central
4.63	*	Senior Indenture, dated August 1, 1998, between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and Deutsche Bank Trust Company Americas, as trustee, including Form of Senior Note (Exhibit 4.1 to Evergy Kansas Central's Form 10-Q for the quarter ended June 30, 1998).	Evergy Evergy Kansas Central
4.64	*	Form of Subordinated Indenture between Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee, including Form of Subordinated Note (Exhibit 4.3 to Evergy Kansas Central's Form S-3 filed on March 18, 2016 (No. 333-210266)).	Evergy Evergy Kansas Central
4.65	*	Description of Securities (Exhibit 4.64 to Evergy, Inc.'s Form 10-K for the fiscal year ended December 31, 2020).	Evergy Evergy Kansas Central Evergy Metro
10.1	*+	Evergy, Inc. (successor to Great Plains Energy Incorporated) Amended Long-Term Incentive Plan, as amended effective on May 3, 2016 (Exhibit 10.4 to Great Plains Energy's Form 10-Q for the quarter ended June 30, 2016).	Evergy Evergy Metro
10.2	*+	Evergy, Inc. (successor to Great Plains Energy Incorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective January 1, 2017 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).	Evergy Evergy Metro
10.3	*+	Evergy, Inc. (successor to Great Plains Energy Incorporated) Long-Term Incentive Plan Awards Standards and Performance Criteria Effective January 1, 2018 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).	Evergy Evergy Metro
10.4	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2017 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).	Evergy Evergy Metro

170

10.5	*+	Form of Amendment to Appendix A to Evergy, Inc. (successor to Great Plains Energy Incorporated) 2017 three-year Performance Share Agreement (Exhibit 10.9 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Metro
10.6	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2017 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017).	Evergy Evergy Metro
10.7	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 three-year Performance Share Agreement (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).	Evergy Evergy Metro
10.8	*+	Form of Amendment to Appendix A to Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 three-year Performance Share Agreement (Exhibit 10.12 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Metro
10.9	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Restricted Stock Agreement (Exhibit 10.2 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018).	Evergy Evergy Metro
10.10	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Restricted Stock Unit Agreement (Exhibit 10.1 to Great Plains Energy's Form 8-K filed on June 4, 2018).	Evergy Evergy Metro
10.11	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) 2018 Cash Retention Payment Agreement (Exhibit 10.2 to Great Plains Energy's Form 8-K filed on June 4, 2018).	Evergy Evergy Metro
10.12	*+	Evergy, Inc. Long-Term Incentive Plan (formerly the Great Plains Energy Incorporated Long-Term Incentive Plan, as amended), effective June 4, 2018 (Exhibit 99.1 to Evergy's Registration Statement on Form S-8 filed on June 15, 2018 (File No. 333-225673)).	Evergy Evergy Metro Evergy Kansas Central
10.13	*+	Form of Evergy, Inc. 2019 Performance-Based Restricted Stock Unit Agreement (Exhibit 10.1 to Evergy's Form 8-K filed on February 15, 2019).	Evergy Evergy Metro Evergy Kansas Central
10.14	*+	Form of Evergy, Inc. 2019 Time-Based Restricted Stock Unit Agreement (Exhibit 10.2 to Evergy's Form 8-K filed on February 15, 2019).	Evergy Evergy Metro Evergy Kansas Central
10.15	*+	Form of Evergy, Inc. 2020 Performance-Based Restricted Stock Unit Agreement (Exhibit 10.19 to Evergy's Form 10-K for the fiscal year ended December 31, 2019)	Evergy Evergy Metro Evergy Kansas Central
10.16	*+	Form of Evergy, Inc. 2020 Time-Based Restricted Stock Unit Agreement (Exhibit 10.20 to Evergy's Form 10-K for the fiscal year ended December 31, 2019).	Evergy Evergy Metro Evergy Kansas Central

171

10.17	*+	Form of Evergy, Inc. 2021 Performance-Based Restricted Stock Unit Agreement. (Exhibit 10.21 to Evergy's Form 10-K for the fiscal year ended December 31, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.18	*+	Form of Evergy, Inc. 2021 Time-Based Restricted Stock Unit Agreement. (Exhibit 10.22 to Evergy's Form 10-K for the fiscal year ended December 31, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.19	+	Form of Evergy, Inc. 2022 Performance-Based Restricted Stock Unit Agreement.	Evergy Evergy Metro Evergy Kansas Central
10.20	+	Form of Evergy, Inc. 2022 Time-Based Restricted Stock Unit Agreement.	Evergy Evergy Metro Evergy Kansas Central
10.21	+	Evergy, Inc. 2022 Annual Incentive Plan.	Evergy Evergy Metro Evergy Kansas Central
10.22	*+	Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Long-Term Incentive and Share Award Plan, effective January 1, 2016 (Appendix B to Evergy Kansas Central's Proxy Statement filed on April 1, 2016).	Evergy Evergy Kansas Central
10.23	*+	Form of Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) 2018 Restricted Share Unit Agreement (Exhibit 10.1 to Evergy Kansas Central's Form 8-K filed on June 4, 2018).	Evergy Evergy Kansas Central
10.24	*+	Evergy, Inc. 2019 Annual Incentive Plan (Exhibit 10.5 to Evergy's Form 10-Q for the quarter ended March 31, 2019).	Evergy Evergy Metro Evergy Kansas Central
10.25	*+	Evergy, Inc. 2020 Annual Incentive Plan (Exhibit 10.24 to Evergy's Form 10-K for the fiscal year ended December 31, 2019).	Evergy Evergy Metro Evergy Kansas Central
10.26	*+	Evergy, Inc. 2021 Annual Incentive Plan. (Exhibit 10.27 to Evergy's Form 10-K for the fiscal year ended December 31, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.27	*+	David A. Campbell Offer Letter, dated December 3, 2020 (Exhibit 10.1 to Evergy's Form 8-K filed on December 8, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.28	*+	Form of Time-Based Restricted Stock Award Agreement for David A. Campbell (Exhibit 10.3 to Evergy's Form 8-K/A filed on December 22, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.29	*+	Kirkland B. Andrews Offer Letter, dated January 30, 2021 (Exhibit 10.1 to Evergy's Form 8-K filed on February 4, 2021).	Evergy Evergy Metro Evergy Kansas Central

172

10.30	*+	Form of Time-Based Restricted Stock Unit Award Agreement for Kirkland Andrews (Exhibit 10.31 to Evergy's Form 10-K for the period ended December 31, 2020).	Evergy Evergy Metro Evergy Kansas Central
10.31	*+	Form of Indemnification Agreement with Evergy, Inc. officers and directors (Exhibit 10.2 to Evergy's Form 10-Q for the quarter ended September 30, 2018).	Evergy Evergy Metro Evergy Kansas Central
10.32	*+	Form of Evergy, Inc. (successor to Great Plains Energy Incorporated) Change in Control Severance Agreement (Exhibit 10.1.e to Great Plains Energy's Form 10-Q for the quarter ended September 30, 2006).	Evergy Evergy Metro
10.33	*+	Form of Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Amended and Restated Change in Control Agreement (Exhibit 10(g) to Evergy Kansas Central's Form 10-K for the period ended December 31, 2015).	Evergy Evergy Kansas Central
10.34	*+	Form of Evergy, Inc. Amended and Restated Change-in-Control Severance Agreement (Exhibit 10.4 to Evergy's Form 10-Q for the quarter ended March 31, 2019).	Evergy Evergy Metro Evergy Kansas Central
10.35	*+	Evergy, Inc. Executive Severance Plan, dated November 6, 2019 (Exhibit 10.1 to Evergy's Form 10-Q for the quarter ended September 30, 2019).	Evergy
10.36	*+	Evergy, Inc. Supplemental Executive Retirement Plan, effective June 4, 2018 (Exhibit 10.6 to Evergy's Form 10-Q for the quarter ended June 30, 2018).	Evergy Evergy Metro Evergy Kansas Central
10.37	*+	Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Retirement Benefit Restoration Plan (Exhibit 10.1 to Evergy Kansas Central's Form 8-K filed on April 2, 2010).	Evergy Evergy Kansas Central
10.38	*+	Amendment dated December 12, 2018 to Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Retirement Benefit Restoration Plan (Exhibit 10.35 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Kansas Central
10.39	*+	Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Non-Employee Director Nonqualified Deferred Compensation Plan, as amended and restated May 17, 2018 (Exhibit 10.8 to Evergy Kansas Central's Form 10-Q for the quarter ended June 30, 2018).	Evergy Evergy Kansas Central
10.40	*+	Evergy, Inc. Nonqualified Deferred Compensation Plan, effective June 4, 2018 (Exhibit 10.39 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Metro Evergy Kansas Central
10.41	*+	Summary of Evergy, Inc. Non-Employee Director Compensation (Exhibit 10.14 to Evergy's For 10-Q for the quarter ended March 31, 2021).	Evergy Evergy Metro Evergy Kansas Central

173

10.42	*	Credit Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents party thereto (Exhibit 10.1 to Evergy's Form 8-K filed September 18, 2018).	Evergy Evergy Metro Evergy Kansas Central
10.43	*	First Amendment, dated November 30, 2018, to Credit Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Evergy Missouri West (formerly KCP&L Greater Missouri Operations Company), Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents party thereto (Exhibit 10.42 to Evergy's Form 10-K for the fiscal year ended December 31, 2018).	Evergy Evergy Metro Evergy Kansas Central
10.44	*	Amended and Restated Credit Agreement, dated August 31, 2021, by and among Evergy, Inc., Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company), Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.), as Borrowers, the lenders referred to therein, as Lenders, and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, Bank of America, N.A., Citibank, N.A., MUFG Bank, Ltd., TD Bank, N.A. and U.S. Bank National Association as Co-Syndication Agents and Issuing Lenders, Wells Fargo Securities, LLC, as Sustainability Structuring Agent, and Wells Fargo Securities, LLC, Citigroup Global Markets Inc., BOFA Securities, Inc., MUFG Bank, Ltd., TD Securities (USA) LLC and U.S. Bank National Association as Joint Lead Arrangers and Joint Bookrunners. (Exhibit 10.1 to Evergy's Form 8-K filed on August 31, 2021).	Evergy Evergy Metro Evergy Kansas Central
10.45	*	Term Loan Agreement, dated March 15, 2019, by and among Evergy, Inc., Wells Fargo Bank, National Association, as Administrative Agent, and the lenders referred to therein (Exhibit 10.1 to Evergy's Form 8-K on March 15, 2019).	Evergy
10.46	*	Guaranty, dated July 15, 2008, issued by Evergy, Inc. (successor to Great Plains Energy Incorporated) in favor of Union Bank of California, N.A., as successor trustee, and the holders of the Evergy Missouri West, Inc. (formerly Aquila, Inc.), 8.27% Senior Notes due November 15, 2021 (Exhibit 10.6 to Great Plains Energy's Form 8-K filed on July 18, 2008).	Evergy
10.47	*	Guaranty Agreement, dated April 20, 2021, issued by Evergy in favor of the holders of Evergy Missouri West, Inc.'s 2.86% Senior Notes due 2031, 3.01% Senior Notes due 2033 and 3.21% Senior Notes due 2033 (Exhibit 10.1 to Evergy's Current Report on Form 8-K filed on April 20, 2021).	Evergy

174

10.48	*	Guaranty Agreement, dated April 20, 2021, issued by Evergy, Inc. in favor of the holders of Evergy Missouri West, Inc.'s 3.49% Senior Notes due 2025, 4.06% Senior Notes due 2033 and 4.74% Senior Notes due 2043 (Exhibit 10.2 to Evergy's Form 8-K filed on April 20, 2021).	Evergy
10.49	*	Guaranty Agreement, dated April 20, 2021, issued by Evergy, Inc. in favor of the holders of Evergy Missouri West, Inc.'s 3.75% Senior Notes due 2022 (Exhibit 10.3 to Evergy's Form 8-K filed on April 20, 2021).	Evergy
10.50	*	Agreement, dated February 28, 2020, among Evergy, Inc., Elliott Investment Management L.P., Elliott Associates, L.P. and Elliott International, L.P. (Exhibit 10.1 to Evergy's Form 8-K filed on March 2, 2020).	Evergy
10.51	*	Amendment, dated March 25, 2020 among Evergy, Inc., Elliott Investment Management L.P., Elliott Associates, L.P. and Elliott International, L.P. (Exhibit 10.1 to Evergy's Form 8-K filed on March 26, 2020).	Evergy
10.52	*	Cooperation Agreement, dated February 25, 2021, by and between Evergy, Inc. and Bluescape Energy Partners, LLC (Exhibit 10.1 to Evergy's Form 8-K filed on February 26, 2021).	Evergy
10.53	*	Securities Purchase Agreement, dated February 25, 2021, by and between Evergy, Inc. and BEP Special Situations V LLC. (Exhibit 10.2 to Evergy's Form 8-K filed on February 26, 2021).	Evergy
10.54	*	Registration Rights Agreement, dated April 14, 2021, by and between Evergy, Inc. and BEP Special Situations V LLC. (Exhibit 10.1 to Evergy's Form 8-K filed on April 14, 2021.	Evergy
10.55	*	Warrant No. 1 issued by Evergy, Inc. on April 14, 2021 (Exhibit 10.2 to Evergy's Form 8-K filed on April 14, 2021).	Evergy
21.1		List of Subsidiaries.	Evergy Evergy Kansas Central
23.1		Consent of Independent Registered Public Accounting Firm.	Evergy
23.2		Consent of Independent Registered Public Accounting Firm.	Evergy Metro
23.3		Consent of Independent Registered Public Accounting Firm.	Evergy Kansas Central
24.1		Powers of Attorney.	Evergy
24.2		Powers of Attorney.	Evergy Kansas Central

175

24.3		Powers of Attorney.	Evergy Metro
31.1		Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.	Evergy
31.2		Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.	Evergy
31.3		Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.	Evergy Metro
31.4		Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.	Evergy Metro
31.5		Rule 13a-14(a)/15d-14(a) Certification of David A. Campbell.	Evergy Kansas Central
31.6		Rule 13a-14(a)/15d-14(a) Certification of Kirkland B. Andrews.	Evergy Kansas Central
32.1	**	Section 1350 Certifications.	Evergy
32.2	**	Section 1350 Certifications.	Evergy Metro
32.3	**	Section 1350 Certifications.	Evergy Kansas Central
101.INS	***	XBRL Instance Document.	n/a
101.SCH		Inline XBRL Taxonomy Extension Schema Document.	Evergy Evergy Metro Evergy Kansas Central
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.	Evergy Evergy Metro Evergy Kansas Central
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.	Evergy Evergy Metro Evergy Kansas Central
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.	Evergy Evergy Metro Evergy Kansas Central
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.	Evergy Evergy Metro Evergy Kansas Central
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).	Evergy Evergy Metro Evergy Kansas Central

* Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof.  The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.

176

** Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange Act.  Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange Act or the Securities Act of 1933, as amended, unless otherwise indicated in such registration statement or other document.

*** The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

+ Indicates management contract or compensatory plan or arrangement.

Copies of any of the exhibits filed with the SEC in connection with this report may be obtained from the applicable registrant upon written request. The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis.

177

Schedule I - Parent Company Financial Statements

EVERGY, INC.
Statements of Comprehensive Income of Parent Company
	2021		2020		2019
OPERATING EXPENSES:	(millions)
Operating and maintenance	$	13.2	$	39.3	$	19.4
Total Operating Expenses	13.2		39.3		19.4
INCOME FROM OPERATIONS	(13.2)		(39.3)		(19.4)
OTHER INCOME (EXPENSE)
Equity in earnings from subsidiaries	932.9		683.4		698.2
Investment earnings	19.2		32.1		32.7
Other expense	(8.3)		(0.1)		(0.1)
Total Other Income, Net	943.8		715.4		730.8
Interest expense	74.3		86.3		60.7
INCOME BEFORE INCOME TAXES	856.3		589.8		650.7
Income tax benefit	(16.5)		(22.7)		(13.7)
NET INCOME	$	872.8	$	612.5	$	664.4
COMPREHENSIVE INCOME
NET INCOME	$	872.8	$	612.5	$	664.4
OTHER COMPREHENSIVE INCOME
Derivative hedging activity
Loss on derivative hedging instruments	—		—		(64.4)
Income tax benefit	—		—		16.5
Net loss on derivative hedging instruments	—		—		(47.9)
Reclassification to expenses, net of taxes	5.5		3.0		1.5
Derivative hedging activity, net of tax	5.5		3.0		(46.4)
Other comprehensive loss from subsidiaries, net	(0.1)		(2.4)		(0.6)
Total other comprehensive income (loss)	5.4		0.6		(47.0)
COMPREHENSIVE INCOME	$	878.2	$	613.1	$	617.4

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

178

EVERGY, INC.
Balance Sheets of Parent Company
	December 31
	2021		2020
ASSETS	(millions, except share amounts)
CURRENT ASSETS:
Cash and cash equivalents	$	7.5		$	11.0
Accounts receivable from subsidiaries	72.2			54.1
Notes receivable from subsidiaries	289.5			349.4
Income taxes receivable	14.8			7.4
Prepaid expenses and other assets	2.0			1.9
Total Current Assets	386.0			423.8
OTHER ASSETS:
Investment in subsidiaries	10,992.1			10,349.2
Note receivable from subsidiaries	—			287.5
Deferred income taxes	19.0			20.5
Other	1.2			0.5
Total Other Assets	11,012.3			10,657.7
TOTAL ASSETS	$	11,398.3		$	11,081.5
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	287.5		$	350.0
Notes payable and commercial paper	358.0			200.0
Accounts payable to subsidiaries	22.3			18.4
Accrued interest	12.4			13.9
Other	8.1			11.0
Total Current Liabilities	688.3			593.3
LONG-TERM LIABILITIES:
Long-term debt, net	1,590.1			1,875.7
Other	14.9			11.7
Total Long-Term Liabilities	1,605.0			1,887.4
Commitments and Contingencies (Note 14)
EQUITY:
Evergy, Inc. Shareholders' Equity:
Common stock - 600,000,000 shares authorized, without par value, 229,299,900 and 226,836,670 shares issued	7,188.7			7,063.2
Retained earnings	1,960.3			1,587.0
Accumulated other comprehensive loss	(44.0)			(49.4)
Total Shareholders' Equity	9,105.0			8,600.8
TOTAL LIABILITIES AND EQUITY	$	11,398.3		11,081.5

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

179

EVERGY, INC.
Statements of Cash Flows of Parent Company
	2021		2020		2019
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:	(millions)
Net income	$	872.8	$	612.5	$	664.4
Adjustments to reconcile income to net cash from operating activities:
Non-cash compensation	15.6		16.0		16.3
Net deferred income taxes and credits	—		9.6		21.4
Equity in earnings from subsidiaries	(932.9)		(683.4)		(698.2)
Other	7.0		7.0		2.1
Changes in working capital items:
Accounts receivable from subsidiaries	(18.2)		(30.0)		8.9
Income taxes receivable	(7.5)		0.6		(7.8)
Prepaid expenses and other current assets	—		0.8		(0.1)
Accounts payable to subsidiaries	3.9		5.0		(15.0)
Accrued interest	(1.4)		(0.7)		12.5
Other current liabilities	(3.2)		2.9		1.7
Cash dividends from subsidiaries	290.0		355.0		460.0
Changes in other assets	0.1		0.3		0.2
Changes in other liabilities	4.8		(3.7)		(3.5)
Cash Flows from Operating Activities	231.0		291.9		462.9
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Repayment of intercompany note	347.4		—		—
Cash Flows from Investing Activities	347.4		—		—
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net	157.1		180.0		20.0
Proceeds from long-term debt	—		—		1,585.0
Retirements of long-term debt	(350.0)		—		—
Payment for settlement of interest rate swap accounted for as a cash flow hedge	—		—		(69.8)
Cash dividends paid	(497.9)		(465.0)		(462.5)
Issuance of common stock	112.5		—		—
Repurchase of common stock	—		—		(1,628.7)
Other financing activities	(3.6)		(7.5)		(2.4)
Cash Flows used in Financing Activities	(581.9)		(292.5)		(558.4)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(3.5)		(0.6)		(95.5)
CASH AND CASH EQUIVALENTS:
Beginning of period	11.0		11.6		107.1
End of period	$	7.5	$	11.0	$	11.6

The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

180

EVERGY, INC.

NOTES TO FINANCIAL STATEMENTS OF PARENT COMPANY

The Evergy, Inc. Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Evergy, Inc. Parent Company Financial Statements.

1. ORGANIZATION AND BASIS OF PRESENTATION

The Evergy, Inc. Parent Company Financial Statements have been prepared to comply with Rule 12-04 of Regulation S-X.

Evergy, Inc. was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy, Inc. and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, Inc., with Evergy, Inc. surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy, Inc. becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West.

Evergy, Inc. operates primarily through its wholly-owned direct subsidiaries. Evergy, Inc.'s investments in subsidiaries are accounted for using the equity method. Fair value adjustments and goodwill related to the acquired assets and liabilities of Great Plains Energy and its direct subsidiaries are only reflected on Evergy's consolidated financial statements and as such, are not included in Evergy, Inc.'s Parent Company Financial Statements. See Note 1 to the consolidated financial statement for additional information.

2. LONG-TERM DEBT

See Note 12 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.

3. GUARANTEES

See Note 15 to the consolidated financial statements for additional information regarding Evergy, Inc.'s guarantees.

4. DIVIDENDS

Cash dividends paid to Evergy, Inc. by its subsidiaries were $290.0 million for the year ended December 31, 2021, $355.0 million for the year ended December 31, 2020 and $460.0 million for the year ended December 31, 2019. See Note 17 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.

181

Schedule II - Valuation and Qualifying Accounts and Reserves

Evergy, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
				Additions
				Charged
	Balance At			To Costs			Charged								Balance
	Beginning			And			To Other								At End
Description	Of Period			Expenses			Accounts				Deductions				Of Period
Year Ended December 31, 2021	(millions)
Allowance for uncollectible accounts		$	19.3		$	28.0		$	12.0	(a)		$	26.4	(b)		$	32.9
Tax valuation allowance		14.4			—			—				1.6		(c)		12.8
Year Ended December 31, 2020
Allowance for uncollectible accounts		$	10.5		$	24.9		$	12.5	(a)		$	28.6	(b)		$	19.3
Tax valuation allowance		17.5			—			—				3.1		(c)		14.4
Year Ended December 31, 2019
Allowance for uncollectible accounts		$	9.2		$	27.2		$	12.4	(e)		$	38.3	(b)		$	10.5
Tax valuation allowance		27.3			0.6			—		(d)		10.4		(c)		17.5

(a) Recoveries.

(b) Uncollectible accounts charged off.

(c) Reversal of tax valuation allowance.

Evergy Kansas Central, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
				Additions
				Charged
	Balance At			To Costs			Charged								Balance
	Beginning			And			To Other								At End
Description	Of Period			Expenses			Accounts				Deductions				Of Period
Year Ended December 31, 2021	(millions)
Allowance for uncollectible accounts		$	7.5		$	12.0		$	4.5	(a)		$	11.0	(b)		$	13.0
Year Ended December 31, 2020
Allowance for uncollectible accounts		$	3.8		$	11.1		$	2.6	(a)		$	10.0	(b)		$	7.5
Year Ended December 31, 2019
Allowance for uncollectible accounts		$	3.9		$	7.2		$	3.4	(a)		$	10.7	(b)		$	3.8
Tax valuation allowance		1.7			—			—				1.7		(c)		—

(a) Recoveries.

(b) Uncollectible accounts charged off.

(c) Reversal of tax valuation allowance.

182

Evergy Metro, Inc.
Valuation and Qualifying Accounts
Years Ended December 31, 2021, 2020 and 2019
				Additions
				Charged
	Balance At			To Costs			Charged								Balance
	Beginning			And			To Other								At End
Description	Of Period			Expenses			Accounts				Deductions				Of Period
Year Ended December 31, 2021	(millions)
Allowance for uncollectible accounts		$	8.1		$	10.5		$	5.3	(a)		$	10.6	(b)		$	13.3
Year Ended December 31, 2020
Allowance for uncollectible accounts		$	4.6		$	9.0		$	6.9	(a)		$	12.4	(b)		$	8.1
Year Ended December 31, 2019
Allowance for uncollectible accounts		$	3.8		$	13.7		$	6.3	(a)		$	19.2	(b)		$	4.6

(a) Recoveries.

(b) Uncollectible accounts charged off.

183

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	EVERGY, INC.
Date: February 24, 2022	By: /s/ David Campbell
	David Campbell
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title		Date
/s/ David Campbell	Director, President and Chief Executive Officer	)	February 24, 2022
David Campbell	(Principal Executive Officer)	)
		)
/s/ Kirkland B. Andrews	Executive Vice President and Chief Financial Officer	)
Kirkland B. Andrews	(Principal Financial Officer)	)
		)
/s/ Steven P. Busser	Vice President and Chief Accounting Officer	)
Steven P. Busser	(Principal Accounting Officer)	)
		)
Mark A. Ruelle*	Chair of the Board of Directors	)
		)
Mollie Hale Carter*	Director	)
		)
Thomas D. Hyde*	Director	)
		)
B. Anthony Isaac*	Director	)
		)
Paul M. Keglevic*	Director	)
		)
Mary L. Landrieu*	Director	)
Sandra A.J. Lawrence*	Director	)
		)
Ann D. Murtlow*	Director	)
		)
Sandra J. Price*	Director	)
		)
S. Carl Soderstrom Jr.*	Director	)
		)
John Arthur Stall*	Director	)
		)
C. John Wilder*	Director	)

*By    /s/ David Campbell

    David Campbell

    Attorney-in-Fact*

184

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                

	EVERGY KANSAS CENTRAL, INC.
Date: February 24, 2022	By: /s/ David Campbell
	David Campbell
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title		Date
/s/ David Campbell	Director, President and Chief Executive Officer	)	February 24, 2022
David Campbell	(Principal Executive Officer)	)
		)
/s/ Kirkland B. Andrews	Executive Vice President and Chief Financial Officer	)
Kirkland B. Andrews	(Principal Financial Officer)	)
		)
/s/ Steven P. Busser	Vice President and Chief Accounting Officer	)
Steven P. Busser	(Principal Accounting Officer)	)
		)
Mark A. Ruelle*	Chair of the Board of Directors	)
		)
Mollie Hale Carter*	Director	)
		)
Thomas D. Hyde*	Director	)
		)
B. Anthony Isaac*	Director	)
		)
Paul M. Keglevic*	Director	)
		)
Mary L. Landrieu*	Director	)
Sandra A.J. Lawrence*	Director	)
		)
Ann D. Murtlow*	Director	)
		)
Sandra J. Price*	Director	)
		)
S. Carl Soderstrom Jr.*	Director	)
		)
John Arthur Stall*	Director	)
		)
C. John Wilder*	Director	)

*By    /s/ David Campbell

    David Campbell

    Attorney-in-Fact*

185

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                

	EVERGY METRO, INC.
Date: February 24, 2022	By: /s/ David Campbell
	David Campbell
	President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title		Date
/s/ David Campbell	Director, President and Chief Executive Officer	)	February 24, 2022
David Campbell	(Principal Executive Officer)	)
		)
/s/ Kirkland B. Andrews	Executive Vice President and Chief Financial Officer	)
Kirkland B. Andrews	(Principal Financial Officer)	)
		)
/s/ Steven P. Busser	Vice President and Chief Accounting Officer	)
Steven P. Busser	(Principal Accounting Officer)	)
		)
Mark A. Ruelle*	Chair of the Board of Directors	)
		)
Mollie Hale Carter*	Director	)
		)
Thomas D. Hyde*	Director	)
		)
B. Anthony Isaac*	Director	)
		)
Paul M. Keglevic*	Director	)
		)
Mary L. Landrieu*	Director	)
Sandra A.J. Lawrence*	Director	)
		)
Ann D. Murtlow*	Director	)
		)
Sandra J. Price*	Director	)
		)
S. Carl Soderstrom Jr.*	Director	)
		)
John Arthur Stall*	Director	)
		)
C. John Wilder*	Director	)

*By    /s/ David Campbell

    David Campbell

    Attorney-in-Fact*

186