Evergy (EVRG) 10-K risk factor changes: FY2020 vs FY2019

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 [removed: condition] [added: position] and cash flows of Evergy and its utility subsidiaries.

In connection with the merger, Evergy Kansas Central and Evergy Metro agreed [added: to a five-year base rate moratorium in Kansas beginning in December 2018.]

[removed: See] [added: Business - Environmental Matters and] Note [removed: 2] [added: 15] to the consolidated financial statements for additional information.

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 [removed: 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.]

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 [removed: impact liquidity.]

[removed: In connection with approval of the merger in Missouri, each] [added: Each] of Evergy Metro and Evergy Missouri West [removed: agreed] [added: has committed] to [added: 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.

[removed: In connection with approval of the merger in Kansas, each] [added: Each] of Evergy Kansas Central and Evergy Metro [removed: agreed] [added: has committed] to [added: 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.

[added: 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.

[removed: The] [added: Subject to certain regulatory constraints, the] Evergy Companies use derivative instruments, such as [added: transmission congestion rights (TCRs),] swaps, options, futures and forwards, to manage commodity and financial risks.

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

The Evergy Companies regularly assess their ability to utilize tax benefits, including those in the form of net operating [removed: loss,] [added: 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.

Additionally, changes in corporate tax rates or policy changes, [removed: such] as [removed: those resulting from the TCJA, 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 [removed: financial] results [added: of operations, financial position] and liquidity of the Evergy Companies.

[added: 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 [removed: financial] results of [added: operations and financial position of] the Evergy Companies.

The anticipated benefits of the [removed: merger] [added: Evergy Companies' strategy] may not be realized.

[removed: Integration costs could have a material adverse impact on the results of the Evergy Companies,] [added: Conservation programs] and [removed: a failure to achieve the anticipated benefits] [added: customers' level] of [added: participation in] the [removed: merger] [added: programs] could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.

Any of the foregoing could have a material adverse [removed: effect] [added: impact] on the Evergy [removed: Companies.][added: Companies' results of operations or financial position.]

Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; [removed: estimates or statements by] the [removed: investment community; the] ability of the Evergy Companies to implement their strategic [removed: plan or to realize the expected synergies and other benefits from the merger;] [added: plan;] the ability of Evergy to deploy capital; actions by regulators; and [removed: speculation] [added: statements] in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations.

[removed: Individuals] [added: Also, individuals] or entities, such as activist shareholders and special interest groups, may [removed: also] 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.

[removed: General] [added: Furthermore, general] market conditions and U.S. economic factors and political events unrelated to the performance of [removed: the] Evergy [added: (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 [removed: Great Plains Energy or] Evergy [removed: Kansas Central] common stock to predict the [added: future] price of Evergy's common [removed: stock or its financial results.][added: stock.]

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 [removed: merger.][added: merger that resulted in the formation of Evergy.]

[removed: Evergy's] [added: Changes in electricity consumption could have a material adverse effect on Evergy's] results of operations, financial position and cash [removed: flows can be materially affected by changes in electricity consumption.][added: flows.]

[removed: 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.

In addition, severe weather and events, including tornados, snow, fire, rain, flooding and ice storms, can be destructive and cause outages and property damage that can result in increased expenses, lower revenues and additional [removed: capital] restoration costs.

High water conditions can also impair planned deliveries of fuel to generating [added: 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 [removed: Evergy's] [added: the Evergy Companies'] service territories.

The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; operator 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 [added: information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism, 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 [removed: generation output and higher maintenance expense.]

For example, NERC has issued comprehensive regulations and standards surrounding the security of bulk power systems and is continually in the process of developing [removed: updated] [added: updates] and new requirements with which the utility industry must comply.

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 [removed: and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties.]

[added: Furthermore, the non-compliance of other utilities with applicable 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 impact their financial results.

Wolf Creek [removed: was constructed prior to 1986] [added: commenced operations in 1985] and the age of Wolf Creek increases the risk of unplanned outages and results in higher maintenance costs.

If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, Evergy [added: 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 SPP's Integrated Marketplace determines which generating units among market participants should run, [removed: within the operating constraints of a unit, at any given time for maximum cost-effectiveness.]

[removed: In the event that] [added: If] Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating [removed: units] [added: resources] are not [removed: among the lowest cost generating units operating within the market,] [added: dispatched,] each could experience decreased levels of wholesale electricity sales.

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.

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.

See Item 1.

The STP includes an increase in targeted capital investments 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, 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.

impact liquidity.

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 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 may purchase on the wholesale markets 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 increase or create unanticipated risks.

Regional transmission organizations and independent system operators may also retroactively reprice transactions following execution.

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.

For example, prior to the U.S. presidential election, President Biden proposed increasing the U.S. corporate income tax rate from 21% to 28% and imposing an alternative minimum tax (AMT) on book income, among other things, and these or similar proposals, if enacted into law, could impact the Evergy Companies' effective tax rate.

The STP includes planned reductions in operating and maintenance expense and planned increases in capital investments.

The STP also includes pursuing statutory and regulatory mechanisms to facilitate the retirement of

coal-fired generation and expansion of the Evergy Companies' wind and solar footprint.

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.

See Part II, Item 7, MD&A - Executive Summary - Strategy, for additional information regarding the STP.

The risks described elsewhere in Item 1A – Risk Factors apply to the STP.

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

Negative perceptions or publicity from increasing scrutiny of environmental, social and governance practices could also 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.

Increased

The Evergy Companies announced a goal in 2020 to achieve an 80% reduction of CO2 emissions from 2005 levels by 2050 and the STP has the potential to reduce CO2 emissions by as much as 85% by 2030 compared to 2005 levels.

The trajectory and timing of the goal could be impacted by many external factors, including national and state energy policies; legal and regulatory matters; stakeholder input into the Evergy Companies' integrated resource plan; the development, deployment and advancement of relevant energy technologies; and other factors.

generation output and higher maintenance expense.

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 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.

and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties.

Furthermore, insurance may not be adequate to cover any associated losses.

The STP includes an increase in targeted capital investments.

The Evergy Companies' ability to implement the investments contemplated in the STP 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.

Failure to attract and retain an appropriately qualified workforce and 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.

to a five-year base rate moratorium in Kansas beginning in December 2018.

As discussed more fully under "Operational Risks," the NRC extensively regulates nuclear power plants, including Wolf Creek.

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 GHGs.

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 15 to the consolidated financial statements for additional information.

As described elsewhere in this Form 10-K, the Evergy Companies are also required to maintain a

The use of derivative contracts could result in financial losses and impair liquidity.

Over the last several years, income tax obligations have been reduced due to the use of bonus depreciation provisions that allow for an acceleration of deductions for tax purposes and IRS guidance on tax deductions for repairs.

The Tax Cuts and Jobs Act of 2017 (TCJA) eliminates bonus depreciation for regulated utilities on new capital investments.

A variety of operating and economic parameters, including transmission constraints, adverse weather conditions and breakdown or failure of equipment, could

The Evergy Companies have incurred, and expect to incur additional, significant costs associated with combining the operations of Great Plains Energy and Evergy Kansas Central.

Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Evergy Kansas Central.

The Evergy Companies expect the merger to produce various benefits, including, among other things, operating efficiencies and cost savings.

However, achieving the anticipated benefits is subject to a number of uncertainties, including:

| | |

| --- | --- |

| • | the ability to efficiently and effectively combine operations of the merged companies; |

| • | general market and economic conditions; |

| • | general competitive factors in the marketplace; and |

| • | higher than expected costs required to achieve the anticipated benefits of the merger. |

No assurance can be given that these benefits will be achieved or achieved in a timely manner.

In addition, the Evergy Companies may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management's focus and resources may be diverted from ordinary business activities and opportunities in order to focus on integration efforts.

Conservation programs and customers' level of participation in the programs could impact the financial results of the Evergy Companies in adverse ways.

The Evergy Companies are targeting to achieve an 80% reduction of carbon emissions by 2050 from 2005 levels.

The trajectory and timing of the goal could be impacted by various factors, including policy, legal or regulatory actions, a lack of technological advancements or other reasons.

information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism, severe weather, pandemics or other similar occurrences.

Furthermore, the non-compliance of other utilities with applicable regulations or the

Any of the foregoing could have a material adverse impact on the Evergy Companies' operations or financial results.

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.

A market for Transmission Congestion Rights (TCR) is also included as part of the Integrated Marketplace.

TCRs are financial instruments used to hedge transmission congestion charges.

Evergy Kansas Central, Evergy Metro and Evergy Missouri West acquire TCRs for the purpose of hedging against transmission congestion charges.

There is a risk that the entities could incorrectly model the amount of TCRs needed, or that the TCRs acquired could be ineffective in hedging against transmission congestion charges, either of which could lead to increased purchased power costs.

The following combined [removed: Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)] [added: MD&A] should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Form 10-K.

The following MD&A generally discusses [removed: 2019] [added: 2020] and [removed: 2018] [added: 2019] items and year-to-year comparisons between [removed: 2019] [added: 2020] and [removed: 2018.][added: 2019.]

Discussions of [removed: 2017] [added: 2018] items and year-to-year comparisons between [removed: 2018] [added: 2019] and [removed: 2017] [added: 2018] 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, [removed: 2018.][added: 2019.]

[removed: | • |] [added: -] Evergy Kansas [removed: Central, formerly known as Westar Energy, Inc.,] [added: Central] is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. [removed: Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, formerly known as Kansas Gas and Electric Company. |]

[removed: | • |] [added: -] Evergy [removed: Metro, formerly known as Kansas City Power & Light Company,] [added: Metro] is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. [removed: |]

[removed: | • |] [added: -] Evergy Missouri [removed: West, formerly known as KCP&L Greater Missouri Operations Company,] [added: West] is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. [removed: |]

[removed: | • |] [added: -] Evergy Transmission [removed: Company, formerly known as GPE Transmission Holding Company, LLC,] [added: Company] owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. [removed: Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method. |]

[removed: Since the rebranding in September 2019,] Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West [removed: have been conducting] [added: conduct] business in their respective service territories using the name Evergy.

Collectively, the Evergy Companies have approximately [removed: 14,700] [added: 15,400] MWs of owned generating capacity and renewable [removed: purchased] power [added: 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.

See Note 18 to the consolidated financial statements for [removed: more] information regarding Evergy's [added: securities purchase agreement with Bluescape to purchase Evergy's] common stock [removed: repurchase program.][added: in 2021.]

[removed: Great] [added: accounting for the Great] Plains Energy and Evergy Kansas Central [removed: Merger][added: merger that was completed in June 2018.]

See Note [removed: 2] [added: 12] to the consolidated financial statements for more information regarding the [removed: merger.][added: master credit facility.]

| | [removed: 2019] | | | | [removed: 2018] | | | | [added: | | | | | | | | | | | | 2020 | | | | | |] Change | | | [added: | | | 2019 | | |]

| | [added: | | | | | | | | | | | | | | | | |] (millions, except per share amounts) | | | | | | | | | | | [added: | | | | | | |]

| Net income attributable to Evergy, Inc. | [added: | | | | | | | | | | | | | | | | | | | |] $ | [removed: 669.9] [added: 618.3] | | | [added: | |] $ | [removed: 535.8] [added: (51.6)] | | | [added: | |] $ | [removed: 134.1] [added: 669.9] | |

| Earnings per common share, diluted | [removed: 2.79] | | | | [removed: 2.50] | | | | [removed: 0.29] | | | [added: | | | | | | | | | 2.72 | | | | | | (0.07) | | | | | | 2.79 | | |]

Diluted EPS [removed: increased] [added: decreased] in [removed: 2019] [added: 2020] compared to [removed: 2018,] [added: 2019,] primarily due to the [removed: increase] [added: decrease] in net income attributable to [removed: Evergy, Inc.] [added: Evergy] discussed above, partially offset by a [removed: higher] [added: lower] number of diluted weighted average common shares outstanding in [removed: 2019,] [added: 2020,] which [removed: diluted] [added: increased] EPS by [removed: $0.34] [added: $0.14] for [removed: 2019.][added: 2020.]

[added: For 2019,] Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) [removed: for 2019] were $694.0 million or $2.89 per share, respectively.

[removed: For 2018,] Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) [added: for 2020] were [removed: $680.9] [added: $705.5] million or [removed: $2.54] [added: $3.10] per share, respectively.

In addition to net income attributable to Evergy, [removed: Inc., diluted EPS, pro forma net income attributable to Evergy,] Inc. and [removed: pro forma] diluted [removed: EPS as prepared in accordance with GAAP,] [added: EPS,] Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the costs [removed: and/or benefits] resulting from rebranding, voluntary [removed: severance] [added: severance, advisor expenses] and [removed: significant items related to] the [removed: Great Plains Energy] [added: revaluation of deferred tax assets] and [removed: Evergy] [added: liabilities from a change in the] Kansas [removed: Central merger.][added: corporate income tax rate.]

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

| | [added: | |] Earnings (Loss) | | | | [added: | |] Earnings (Loss) per Diluted Share | | | [added: | | |] Earnings (Loss) | | | | [added: | |] Earnings (Loss) per Diluted Share | | |

| | [added: | |] (millions, except per share amounts) | | | | | | | | | | | | | | [added: | | | | | | |]

| Net income attributable to Evergy, Inc. | [added: | |] $ | [removed: 669.9] [added: 618.3] | | | [added: | |] $ | [removed: 2.79] [added: 2.72] | | [added: | | |] $ | [removed: 535.8] [added: 669.9] | | | [added: | |] $ | [removed: 2.50] [added: 2.79] | |

| Pro forma adjustments(a): | | | | | | [removed: | | | | | | | | |]

| Non-recurring merger costs and other | [removed: —] | | [removed: | | — | | | 84.1 | | | | 0.32] [added: (101.3)] | | |

| [removed: Pro forma net] [added: Net] income attributable to Evergy, Inc. | [removed: $] | [removed: 669.9] | [added: $] | [added: 618.3] | [removed: $] | [removed: 2.79] | | [added: |] $ | [removed: 714.3] [added: (51.6)] | | | [added: | |] $ | [removed: 2.67] [added: 669.9] | |

| Non-GAAP reconciling items: | | | | | | | | | | | | | | | [added: | | | | | | | | |]

| Rebranding costs, [removed: pre-tax(b)] [added: pre-tax(a)] | [removed: 12.1] | | [added: —] | | [removed: 0.05] | | | [added: |] — | | | | [removed: —] | | [added: 12.1] | [added: | | | | | 0.05 | | |]

| Voluntary severance costs, [removed: pre-tax(c)] [added: pre-tax(b)] | [removed: 19.8] | | [added: 66.3] | | [removed: 0.08] | | | [removed: 23.5] | [added: 0.29] | | | [removed: 0.09] | | | [added: 19.8 | | | | | | 0.08 | | |]

| Deferral of merger transition [removed: costs, pre-tax(e) | — | | | | — | | | (28.5 |] [added: costs(c)] | [removed: )] | | [removed: (0.11] [added: 28.5] | | [removed: )] |

| Inventory [removed: write-off] [added: write-offs] at retiring generating [removed: units, pre-tax(f) | — | | | | — | | | 31.0 |] [added: units(d)] | | | [removed: 0.12] [added: (31.0)] | | |

| Income tax [removed: benefit(g)] [added: benefit(d)] | [removed: (7.8] | | [removed: )] [added: (25.2)] | | [removed: (0.03] | | [removed: )] | [removed: (6.8] | [added: (0.11)] | [removed: )] | | [removed: (0.03] | | [removed: )] | [added: (7.8) | | | | | | (0.03) | | |]

| Adjusted earnings (non-GAAP) | [added: | |] $ | [removed: 694.0] [added: 705.5] | | | [added: | |] $ | [removed: 2.89] [added: 3.10] | | [added: | | |] $ | [removed: 680.9] [added: 694.0] | | | [added: | |] $ | [removed: 2.54] [added: 2.89] | |

[removed: | (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 [removed: annual report] [added: Annual Report] on Form 10-K for further information regarding these adjustments. [removed: |]

[removed: | (b) | Reflects] [added: (a)Reflects] external costs incurred to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy and are included in operating and maintenance expense on the consolidated statements of comprehensive income. [removed: |]

[removed: | (c) | Reflects] [added: (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 consolidated statements of comprehensive income. [removed: |]

[removed: | (d) | Reflects] [added: (e)Reflects] the revaluation of Evergy Kansas [removed: Central's] [added: Central's, Evergy Metro's and Evergy Missouri West's] deferred income tax assets and liabilities [removed: based on] [added: from] the [removed: Evergy composite] [added: Kansas corporate income] tax rate [removed: as a result of the merger in June 2018] [added: change] and are included in income tax expense on the consolidated statements of comprehensive income. [removed: |]

[removed: | (e) | 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. [removed: This item is included in operating and maintenance expense on the consolidated statements of comprehensive income. |]

[removed: | (f) | Reflects] [added: (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 [added: 2018] consolidated statements of comprehensive [removed: income. |][added: income in the Evergy Companies' combined 2018 Annual Report on Form 10-K.]

Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South.

Transource is focused on the development of competitive electric transmission projects.

Evergy Transmission Company accounts for its investment in Transource under the equity method.

In August 2020, Evergy announced a five-year Sustainability Transformation Plan, or STP, to optimize and enhance value creation for shareholders, customers, communities and employees.

Significant elements of the plan include:

- targeting a reduction of approximately $330 million of operating and maintenance expense by 2024 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 a reduction of approximately $145 million of fuel and purchased power expense between 2019 and 2024; and

- targeting approximately $8.9 billion of expected base capital investments through 2024.

Of this amount, Evergy estimates approximately $2.9 billion to qualify for PISA in Missouri, and approximately $1.9 billion to be focused on FERC-jurisdictional improvements.

See "Liquidity and Capital Resources; Capital Expenditures", for further information regarding Evergy's projected capital expenditures through 2024.

The STP also enhances Evergy's efforts to mitigate future strategic risk through the responsible and accelerated reduction of CO2 emissions.

In 2020, Evergy achieved a reduction of CO2 emissions of approximately 50% from 2005 levels and announced a goal to achieve an 80% reduction from 2005 levels by 2050.

The STP has the potential to reduce CO2 emissions by as much as 85% by 2030 compared to 2005 levels.

The STP includes steps that would expedite CO2 emission reductions by pursuing constructive legislative and regulatory recovery mechanisms to facilitate the retirement of coal-fired generation and expansion of Evergy's wind and solar footprint, while maintaining reliability.

The pace of CO2 emission reductions will ultimately be defined by continued collaboration with stakeholders as part of Evergy's triennial integrated resource plan.

Furthermore, the trajectory and timing for reaching this goal could be impacted by political, legal and regulatory actions and applicable technology developments.

Agreements with Elliott Investment Management L.P. and Bluescape Energy Partners, LLC

On February 25, 2021, Evergy entered into separate agreements with Bluescape Energy Partners, LLC, (Bluescape) Elliott Investment Management L.P. (Elliott) and affiliates of Elliott.

As part of the agreement with Bluescape (the Bluescape Agreement), C.

John Wilder, Executive Chairman of Bluescape, and Mary L.

Landrieu, former U.S. Senator for Louisiana, will join the Evergy Board effective as of March 1, 2021.

In addition, pursuant to a securities purchase agreement, by and between Evergy and an affiliate of Bluescape, dated as of February 25, 2021 (the Bluescape Investment Agreement), Bluescape has agreed to purchase 2,269,447 shares of Evergy’s common stock for approximately $113.2 million and will receive a warrant to purchase up to 3,950,000 additional shares of Evergy’s common stock, in each case subject to satisfaction of customary closing conditions,

including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The warrant will have a term of three years and an exercise price equal to $64.70.

Each of Bluescape and Elliott also agreed to customary standstill, voting and other provisions in connection with the foregoing.

The foregoing summaries of the Bluescape Agreement and the Bluescape Investment Agreement are qualified in their entirety by reference to the Bluescape Agreement and the Bluescape Investment Agreement, respectively, a copy of which is attached as Exhibit 10.1 and Exhibit 10.2, respectively, to Evergy’s Current Report on Form 8-K filed on February 26, 2021 and are incorporated herein by reference.

Impact of COVID-19

The COVID-19 pandemic has had, and may continue to have, a significant impact on the way that the Evergy Companies conduct their operations, including the implementation of social distancing and other preventative protocols and the direction of employees to work remotely when possible.

Further, the spread of COVID-19 has resulted in efforts to contain the virus, such as quarantines, restrictions on travel, closures and the 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 and cause employee absences.

In the states of Missouri and Kansas as well as certain counties and municipalities within the Evergy Companies' service territory, "stay-at-home" orders were in effect for parts of 2020 and could be implemented again in the future.

Governmental mandates that restrict the operation of businesses, governmental agencies and other institutions continue to remain in effect and a substantial portion of the Evergy Companies' service territory is also required to utilize preventative measures such as the wearing of face coverings while in public areas.

The announcement in late 2020 of multiple COVID-19 vaccines with high expected effectiveness rates could serve to mitigate both the severity and ongoing duration of the COVID-19 outbreak.

However, both the magnitude and timing of the impact of the COVID-19 vaccines is not yet known and could be subject to multiple factors including the available supply of vaccine, the vaccine adoption rate by the general public and the achievement of the vaccines' expected effectiveness rates.

Management cannot foresee whether the outbreak of COVID-19 will be effectively contained, nor can it predict the severity and ongoing duration of its impact.

During 2020, Evergy experienced an overall reduction in demand and shift of usage away from customers with relatively higher load requirements, such as industrial and commercial customers, towards customers with relatively lower load requirements, such as residential customers.

In 2020, approximately 39% of Evergy's total revenues came from residential customers and approximately 45% came from commercial and industrial customers, compared with approximately 37% from residential customers and 47% from commercial and industrial customers in 2019.

The KCC and MPSC have established different prices for the Evergy Companies' residential, commercial and industrial customers and a similar change in demand across each customer class will have a different impact on earnings.

As a result, the impacts to Evergy's earnings from a reduction in demand from industrial and commercial customers have been partially offset by an increase in demand from residential customers.

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.

In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.

| | |

| --- | --- |

Evergy's objectives are to deliver value to shareholders through earnings and dividend growth; serve customers and communities with cost-effective, reliable and clean energy; and maintain a rewarding and challenging work environment for employees.

Significant elements of Evergy's strategy to achieve these objectives include:

| • | the realization of a total of approximately $595 million of potential net savings over the first five years of operation of the combined company, which formed in June 2018, resulting from synergies that are expected to be created as a result of the merger; |

| • | anticipated rate base investment of approximately $7.6 billion from 2020 through 2024; and |

| • | the reduction of carbon emissions by 80% by 2050 from 2005 levels through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants. See "Transforming Evergy's Generation Fleet" in Part I, Item 1, Business, for additional information. |

In March 2020, the Evergy Board announced the creation of a Strategic Review & Operations Committee that will explore ways to enhance long-term shareholder value (taking into account applicable legal and regulatory requirements and any other relevant considerations), including through a potential strategic combination or an enhanced long-term standalone operating plan and strategy.

The committee is expected to complete its review and make a recommendation to Evergy's Board in the first half of 2020.

Common Stock Repurchase Program

In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock.

Evergy has utilized various methods to effectuate the share repurchase program since its authorization, including the repurchase of shares through ASR agreements and open market transactions.

For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program.

Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program.

Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.

Evergy 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 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, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger.

These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West.

As a result of the closing of the merger transactions, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock, resulting in the issuance of 128.9 million shares.

Additionally, each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock.

Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy.

Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy.

The results of Great Plains

Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

Net income attributable to Evergy, Inc. increased in 2019 compared to 2018, primarily due to the inclusion of Evergy Metro's and Evergy Missouri West's earnings in the first five months of 2019, merger-related costs and reductions of revenue for customer bill credits incurred in June 2018 following the consummation of the merger, lower operating and maintenance expenses at fossil-fuel generating units and lower administrative and general expenses, partially offset by lower retail sales driven by unfavorable weather and higher depreciation expense.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | 2019 | | | | | | | 2018 | | | | | | |

| Great Plains Energy earnings prior to merger | — | | | | — | | | 94.4 | | | | 0.35 | | |

| Great Plains Energy shares prior to merger | n/a | | | | — | | | n/a | | | | (0.50 | | ) |

| Composite tax rate change(d) | — | | | | — | | | (52.6 | | ) | | (0.20 | | ) |

Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in September 2019 and the unit returned to service in November 2019.

Wolf Creek's next refueling outage is planned to begin in the first quarter of 2021.

| | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and [removed: equity] [added: security] prices.

Interest rate risk is the potential adverse financial [removed: impact related to changes in interest rates.]

[removed: The] [added: These activities expose the] Evergy Companies [removed: engage in the wholesale and retail sale of electricity and are exposed] to risks associated with the price of electricity and other energy-related products.

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 [removed: cost-recovery mechanisms, primarily through] fuel recovery mechanisms.

At December 31, [removed: 2019,] [added: 2020,] 3% of Evergy's long-term debt was variable rate debt.

Evergy had [removed: $1,113.7] [added: $1,038.7] million of variable rate debt, including notes payable, commercial paper and current maturities of fixed rate debt as of December 31, [removed: 2019.][added: 2020.]

A 100-basis-point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately [removed: $9.9] [added: $6.2] million.

As of December 31, [removed: 2019,] [added: 2020,] these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet.

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 [removed: asset] [added: liability] for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings.

impact related to changes in interest rates.

The Evergy Companies engage in the wholesale and retail sale of electricity as part of their regulated electric operations in addition to limited energy marketing activities.

[removed: | • |] [added: -] Evergy Kansas Central, Inc. (Evergy Kansas [removed: Central), formerly known as Westar Energy, Inc.,] [added: Central)] is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. [removed: Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company. |]

[removed: | • |] [added: -] Evergy Metro, Inc. (Evergy [removed: Metro), formerly known as Kansas City Power & Light Company,] [added: Metro)] is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. [removed: |]

[removed: | • |] [added: -] Evergy Missouri West, Inc. (Evergy Missouri [removed: West), formerly known as KCP&L Greater Missouri Operations Company,] [added: West)] is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. [removed: |]

[removed: | • |] [added: -] Evergy Transmission Company, LLC (Evergy Transmission [removed: Company), formerly known as GPE Transmission Holding Company, LLC,] [added: 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). [removed: Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method. |]

Prairie Wind owns a 108-mile, 345 [removed: kV] [added: kilovolt (kV)] double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP).

[removed: Since the rebranding in September 2019,] Evergy Kansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West [removed: have been conducting] [added: conduct] business in their respective service territories using the name Evergy.

Evergy serves approximately [removed: 1,604,300] [added: 1,620,400] customers located in Kansas and Missouri.

Customers include approximately [removed: 1,407,700] [added: 628,100] residences, [removed: 189,600] [added: 88,000] commercial [removed: firms] [added: firms,] and [removed: 7,000] [added: 4,400] industrials, municipalities and other electric utilities.

| | [added: | | 2020 | | | | | |] 2019 | | [added: | | | |] 2018 | | [removed: 2017] |

| Residential | [added: | | 39% | | | | | |] 37% | | [added: | | | |] 37% | | [removed: 32%] |

| Commercial | [added: | | 33% | | | | | |] 35% | | [added: | | | |] 32% | | [removed: 28%] |

| Industrial | [added: | |] 12% | | [added: | | | |] 12% | | [removed: 16%] | [added: | | | 12% | | |]

| Wholesale | [added: | | 5% | | | | | |] 7% | | [added: | | | |] 10% | | [removed: 12%] |

| Transmission | [added: | |] 6% | | [added: | | | | 6% | | | | | |] 7% | | [removed: 11%] |

| Other | [added: | | 5% | | | | | |] 3% | | [added: | | | |] 2% | | [removed: 1%] |

| Total | [added: | |] 100% | | [added: | | | |] 100% | | [added: | | | |] 100% | [added: | |]

| Residential | [added: | | 38% | | | | | |] 36% | | [added: | | | |] 37% | | [removed: 32%] |

| Commercial | [added: | | 42% | | | | | |] 43% | | [added: | | | |] 41% | | [removed: 38%] |

| Industrial | [added: | | 20% | | | | | |] 21% | | [added: | | | |] 22% | | [removed: 30%] |

See Note [removed: 2] [added: 15] to the consolidated financial statements for [removed: more information regarding the merger.][added: additional information.]

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 [added: service territories.]

| | [added: | |] Regulator | [added: | |] Allowed Return on Equity | [added: | |] Rate-Making Equity Ratio | [added: | | | | |] Effective Date | [added: | |]

| Evergy Kansas Central (a) | [added: | |] KCC | [added: | |] 9.3% | [added: | |] 51.46% | [added: | | | | |] September 2018 | [added: | |]

| Evergy Metro - Kansas | [added: | |] KCC | [added: | |] 9.3% | [added: | |] 49.09% | [added: | | | | |] December 2018 | [added: | |]

| Evergy Metro - Missouri | [added: | |] MPSC | [added: | |] (b) | [added: | |] (b) | [added: | | | | |] December 2018 | [added: | |]

| Evergy Missouri West | [added: | |] MPSC | [added: | |] (b) | [added: | |] (b) | [added: | | | | |] December 2018 | [added: | |]

(b) Evergy Metro's and Evergy Missouri West's current MPSC rate [removed: order does] [added: orders do] not contain an allowed return on equity or rate-making equity ratio.

Evergy expects its [removed: 2020] [added: 2021] 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.

Evergy has [removed: 14,700 MWs] [added: approximately 15,400 megawatts (MWs)] of owned generating capacity and renewable [removed: purchased] power [added: purchase] agreements.

Evergy's owned generation and [removed: purchased] power [added: purchases] from others, as a percentage of total [removed: MWhs] [added: megawatt hours (MWhs)] generated and purchased, was approximately [removed: 71%] [added: 70%] and [removed: 29%,] [added: 30%,] respectively, over the last [removed: two] [added: three] years.

Management believes Evergy will be able to meet its future [removed: purchased] power [added: 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.

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

| Fuel Type | [added: | |] Estimated MW Capacity | | [added: |] Percent of Total Capacity | | | [added: | | |]

| Natural gas and oil | [removed: 3,988] | | [removed: 27] [added: 3,935] | | | [added: 26 | | | | | |]

| Solar, landfill gas and hydroelectric (b) | [added: | |] 72 | | [added: |] 1 | | | [added: | | |]

| Total capacity | [removed: 14,709] | | [added: 15,373 | | |] 100 | | [added: |] % | [added: | |]

Includes owned generating capacity of 579 MWs and long-term power purchase agreements of approximately [removed: 3,063] [added: 3,760] MWs of wind generation that expire [removed: in] [added: from] 2028 through 2048.

Evergy's projected peak summer demand for [removed: 2020] [added: 2021] is approximately [removed: 10,367] [added: 10,300] MWs.

Evergy expects to meet its projected capacity requirements for [removed: the foreseeable future] [added: 2021] with its existing generation assets and power [removed: and capacity] purchases.

This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and [removed: peak demand reduction programs.]

Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South).

Transource is focused on the development of competitive electric transmission projects.

Evergy Transmission Company accounts for its investment in Transource under the equity method.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2020 | | | | | | 2019 | | | | | | 2018 | | |

| Total | | | 100% | | | | | | 100% | | | | | | 100% | | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Coal | | | 5,919 | | | 39 | | | % | | |

| Wind (a) | | | 4,339 | | | 27 | | | | | |

| Uranium | | | 1,108 | | | 7 | | | | | |

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

peak demand reduction programs.

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.

In 2020, Evergy achieved a reduction of CO2 emissions of approximately 50% from 2005 levels and announced a goal to achieve an 80% reduction from 2005 levels by 2050.

In August 2020, Evergy also announced a five-year Sustainability Transformation Plan (STP), which seeks to optimize and enhance value creation for stakeholders and has the potential to reduce CO2 emissions by as much as 85% by 2030 compared to 2005 levels.

The STP includes steps that would expedite CO2 emission reductions by pursuing constructive legislative and regulatory recovery mechanisms to facilitate the retirement of coal-fired generation and expansion of Evergy's wind and solar footprint, while maintaining reliability.

The pace of CO2 emission reductions will ultimately be defined by continued collaboration with stakeholders as part of Evergy's triennial integrated resource plan.

See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) - Executive Summary - Strategy, for additional information regarding the STP.

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.

efficiency and demand response initiatives.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Fuel | | | 2020 | | | | | | | | | 2020 | | | | | | | | | | | |

| Coal | | | 46 | | | % | | | | | | $1.99 | | | | | | | | | | | |

| Uranium | | | 21 | | | | | | | | | 0.59 | | | | | | | | | | | |

Human Capital Resources

The Evergy Companies currently have labor agreements with each of these unions that expire at varying times in 2021 and 2022.

The Evergy Companies employ 1,684 generation employees, 1,383 transmission and distribution employees and 2,066 support employees that work 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.

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.

In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.

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Merger of Great Plains Energy and Evergy Kansas Central

Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy).

Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement).

On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement.

As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger.

Following the completion of these mergers, Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West, became wholly-owned subsidiaries of Evergy.

The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Evergy Kansas Central.

As a result of the closing of the merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock.

Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy.

Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy.

The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter.

service territories.

| | | | | |

| --- | --- | --- | --- | --- |

| Coal | 5,903 | | 40 | | % |

| Wind (a) | 3,642 | | 24 | | |

| Uranium | 1,104 | | 8 | | |

demand for electricity, to inform the manner in which they supply electricity.

The transition of their generation fleet has allowed the Evergy Companies to reduce carbon emissions by almost 40% since 2005.

| | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- |

| Fuel | 2019 | | | 2019 | | | |

| Coal | 50 | % | | $2.03 | | | |

| Uranium | 18 | | | 0.60 | | | |

Employees

Evergy also has a 94% indirect ownership share in Wolf Creek, which, at December 31, 2019, had 858 employees, including 477 represented by a local union of the IBEW and a local union of the United Government Security Officers of America (UGSOA).

Evergy Kansas Central has labor agreements with IBEW Locals 304 and 1523, representing power plant and transmission and distribution workers (expires June 30, 2021).

Evergy Metro has labor agreements with IBEW Local 1613, representing clerical employees (expires March 31, 2021), with IBEW Local 1464, representing transmission and distribution workers (expires January 31, 2021), and with IBEW Local 412, representing power plant workers (expires February 28, 2021).

Wolf Creek has labor agreements with IBEW Local 304 (expires September 20, 2021) and UGSOA Local 252 (expires July 31, 2020).

| | | | |

| --- | --- | --- | --- |

| (a) | Mr. Bassham was appointed President and Chief Executive Officer of Evergy, Inc. in June 2018. Mr. Bassham served as Chairman of the Board of Great Plains Energy (2013-2018) and had served as Chief Executive Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West since 2012. He has served as President of each company since 2011. He previously served as President and Chief Operating Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2012) and as Executive Vice President - Utility Operations of Evergy Metro and Evergy Missouri West (2010-2011). He was Executive Vice President - Finance and Strategic Development and Chief Financial Officer of Great Plains Energy (2005-2010) and of Evergy Metro and Evergy Missouri West (2009-2010). |

Other Proceedings

[removed: FORM 10-K][added: FORM 10-K]

For the fiscal year ended December 31, [removed: 2019][added: 2020]

[removed: ][added: ]

| | | [added: | | | |] Exact name of registrant as specified in its charter, | | | [added: | | | | | |]

| Commission | | [added: | | | |] state of incorporation, address of principal | | [added: | | | |] I.R.S. Employer | [added: | |]

| File Number | | [added: | | | |] executive offices and telephone number | | [added: | | | |] Identification Number | [added: | |]

| 001-38515 | | [added: | | | |] EVERGY, INC. | | [added: | | | |] 82-2733395 | [added: | |]

| 001-03523 | | [added: | | | |] EVERGY KANSAS CENTRAL, INC. | | [added: | | | |] 48-0290150 | [added: | |]

| 000-51873 | | [added: | | | |] EVERGY METRO, INC. | | [added: | | | |] 44-0308720 | [added: | |]

| | | [added: | | | |] Securities registered pursuant to Section 12(b) of the Act: | | | [added: | | | | | |]

| Title of each class | | [added: | | | |] Trading Symbol(s) | | [added: | | | |] Name of each exchange on which registered | [added: | |]

| Evergy, Inc. common stock | | [added: | | | |] EVRG | | [added: | | | |] New York Stock Exchange | [added: | |]

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

| Evergy, Inc. | | | | | [added: | | | | | | | | | |] Yes | [added: | |] ☒ | | | [added: | | | | | |] No | [added: | |] ☐ | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Kansas Central, Inc. | | | | | [added: | | | | | | | | | |] Yes | [added: | |] ☐ | | | [added: | | | | | |] No | [added: | |] ☒ | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Metro, Inc. | | | | | [added: | | | | | | | | | |] Yes | [added: | |] ☐ | | | [added: | | | | | |] No | [added: | |] ☒ | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

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

| Evergy, Inc. | | | | | [added: | | | | | | | | | |] Yes | [added: | |] ☐ | | | [added: | | | | | |] No | [added: | |] ☒ | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| 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. | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Kansas Central, Inc. | | | | | [added: | | | | | | | | | |] Yes | [removed: ☒] | | [added: ☐] | [added: | | | | | | | |] No | [removed: ☐] | | [added: ☒] | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Metro, Inc. | | | | | [added: | | | | | | | | | |] Yes | [removed: ☒] | | [added: ☐] | [added: | | | | | | | |] No | [removed: ☐] | | [added: ☒] | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | |]

| 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). | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| 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. | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy, Inc. | [added: | |] Large Accelerated Filer | | | [added: | | | | | |] ☒ | [added: | |] Accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Non-accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Smaller Reporting Company | | | [added: | | | | | |] ☐ | [added: | |] Emerging Growth Company | | | [added: | | | | | |] ☐ | | [added: | | | |]

| Evergy Kansas Central, Inc. | [added: | |] Large Accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Non-accelerated Filer | | | [added: | | | | | |] ☒ | [added: | |] Smaller Reporting Company | | | [added: | | | | | |] ☐ | [added: | |] Emerging Growth Company | | | [added: | | | | | |] ☐ | | [added: | | | |]

| Evergy Metro, Inc. | [added: | |] Large Accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Accelerated Filer | | | [added: | | | | | |] ☐ | [added: | |] Non-accelerated Filer | | | [added: | | | | | |] ☒ | [added: | |] Smaller Reporting Company | | | [added: | | | | | |] ☐ | [added: | |] Emerging Growth Company | | | [added: | | | | | |] ☐ | | [added: | | | |]

| 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. | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy, Inc. | | | | | | [added: | | | | | | | | | | | |] ☐ | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Kansas Central, Inc. | | | | | | [added: | | | | | | | | | | | |] ☐ | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Evergy Metro, Inc. | | | | | | [added: | | | | | | | | | | | |] ☐ | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

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, [removed: 2019)] [added: 2020)] was approximately [removed: $14,138,041,261.][added: $13,410,149,293.]

On February [removed: 24, 2020,] [added: 19, 2021,] Evergy, Inc. had [removed: 226,659,013] [added: 226,944,941] shares of common stock outstanding.

On February [removed: 24, 2020,] [added: 19, 2021,] 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. | | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

Portions of the [removed: 2020] [added: 2021] 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.

| TABLE OF CONTENTS | | | [added: | | | | | |]

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| | [added: | |] [Cautionary Statements Regarding Certain Forward-Looking [removed: Information](#sA43ED51436095E969CEE3B465ECCEE61)] [added: Information](#i0079a6cf16064cbcac4dc3b5348b02a0_19)] | [removed: [3](#sA43ED51436095E969CEE3B465ECCEE61)] | [added: | [3](#i0079a6cf16064cbcac4dc3b5348b02a0_19) | | |]

| | [added: | |] [Glossary of [removed: Terms](#s63D5A3E55DF65AB99778CFF33F96A5A2)] [added: Terms](#i0079a6cf16064cbcac4dc3b5348b02a0_22)] | [removed: [4](#s63D5A3E55DF65AB99778CFF33F96A5A2)] | [added: | [5](#i0079a6cf16064cbcac4dc3b5348b02a0_22) | | |]

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| Evergy, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Evergy Kansas Central, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Evergy Metro, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Evergy, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Evergy Kansas Central, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Evergy Metro, Inc. | | | | | | | | | | | | | | | Yes | | | ☒ | | | | | | | | | No | | | ☐ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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(formerly Westar Energy, Inc.)

(formerly Kansas City Power & Light Company)

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| [PART I](#s7DFFF55A69A951598FF2A5957175712B) | | |

| [PART II](#s3A41586DFE215CD78AF42DCA14C52A62) | | |

| [PART IV](#s4EE2C6EA88AB55CCB10259CF21577FBB) | | |

| | [Signatures](#s7F3B7A2114B85220BB698409D2C8472F) | [175](#s7F3B7A2114B85220BB698409D2C8472F) |

Part I, Item 1A, Risk Factors included in this report should be carefully read for further understanding of potential risks for the Evergy Companies.

| Amended Merger Agreement | | Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy Holding, Inc. and King Energy, Inc. |

| ASC | | Accounting Standards Codification |

| ASR | | Accelerated share repurchase |

| ASU | | Accounting Standards Update |

| D.C. Circuit | | U.S. Court of Appeals for the D.C. Circuit |

| EIRR | | Environmental Improvement Revenue Refunding |

| Evergy Metro Mortgage Indenture | | Evergy Metro General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented |

| FMB | | First Mortgage Bond |

| KDHE | | Kansas Department of Health & Environment |

| King Energy | | King Energy, Inc., a wholly-owned subsidiary of Evergy |

| LIBOR | | London Interbank Offered Rate |

| LTISA | | Long-Term Incentive and Share Award plan |

| Monarch Energy | | Monarch Energy Holding, Inc. |

| NSR | | New source review |

| PISA | | Plant-in service accounting |

| TCJA | | Tax Cuts and Jobs Act |

| TCR | | Transmission Congestion Rights |

| | | | | | | [added: | | | | | | | | | | | |] Unit Capability (MW) By Owner(a) | | | | | | | | | | | | | [added: | | | | | | | |]

| Station | [added: | |] Unit No. | | [added: | | | |] Location | [added: | |] Year Completed | [added: | |] Fuel | [added: | |] Evergy Kansas Central | | [added: |] Evergy Metro | | [added: |] Evergy Missouri West | | [added: |] Total Company Generation | | [added: |] Renewable Purchased Power | | | [added: | | |] Total Generation and Renewable Purchased Power | | [added: |]

| Renewable Generation: | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | |]

| Central Plains | | | [added: | | | | | |] Kansas | [added: | |] 2009 | [added: | |] Wind | [added: | |] 99 | | [added: |] — | | [added: |] — | | [added: |] 99 | | [added: |] — | | | [added: | | |] 99 | | [added: |]

| Flat Ridge | | | [added: | | | | | |] Kansas | [added: | |] 2009 | [added: | |] Wind | [added: | |] 50 | | [added: |] — | | [added: |] — | | [added: |] 50 | | [added: |] 50 | | [removed: (e)] | [added: (b) | | |] 100 | | [added: |]

| Western Plains | | | [added: | | | | | |] Kansas | [added: | |] 2017 | [added: | |] Wind | [added: | |] 281 | | [added: |] — | | [added: |] — | | [added: |] 281 | | [added: |] — | | | [added: | | |] 281 | | [added: |]

| Meridian Way | | | [added: | | | | | |] Kansas | [added: | |] 2008 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 96 | | [removed: (e)] | [added: (b) | | |] 96 | | [added: |]

| Ironwood | | | [added: | | | | | |] Kansas | [added: | |] 2012 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 168 | | [removed: (e)] | [added: (b) | | |] 168 | | [added: |]

| Post Rock | | | [added: | | | | | |] Kansas | [added: | |] 2012 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 201 | | [removed: (e)] | [added: (b) | | |] 201 | | [added: |]

| Cedar Bluff | | | [added: | | | | | |] Kansas | [added: | |] 2015 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 199 | | [removed: (e)] | [added: (b) | | |] 199 | | [added: |]

| Kay Wind | | | [added: | | | | | |] Oklahoma | [added: | |] 2015 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 200 | | [removed: (e)] | [added: (b) | | |] 200 | | [added: |]

| Ninnescah | | | [added: | | | | | |] Kansas | [added: | |] 2016 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 208 | | [removed: (e)] | [added: (b) | | |] 208 | | [added: |]

| Kingman 1 | | | [added: | | | | | |] Kansas | [added: | |] 2016 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 103 | | [removed: (e)] | [added: (b) | | |] 103 | | [added: |]

| Kingman 2 | | | [added: | | | | | |] Kansas | [added: | |] 2016 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 103 | | [removed: (e)] | [added: (b) | | |] 103 | | [added: |]

| Rolling Meadows | | | [added: | | | | | |] Kansas | [added: | |] 2010 | [added: | |] Landfill Gas | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 6 | | [removed: (e)] | [added: (b) | | |] 6 | | [added: |]

| Hutch Solar | | | [added: | | | | | |] Kansas | [added: | |] 2017 | [added: | |] Solar | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 1 | | [removed: (e)] | [added: (b) | | |] 1 | | [added: |]

| Cimarron II | | | [added: | | | | | |] Kansas | [added: | |] 2012 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 131 | | [removed: (f)] | [added: (d) | | |] 131 | | [added: |]

| Spearville 1 | | | [added: | | | | | |] Kansas | [added: | |] 2006 | [added: | |] Wind | [added: | |] — | | [added: |] 101 | | [added: |] — | | [added: |] 101 | | [added: |] — | | | [added: | | |] 101 | | [added: |]

| Spearville 2 | | | [added: | | | | | |] Kansas | [added: | |] 2010 | [added: | |] Wind | [added: | |] — | | [added: |] 48 | | [added: |] — | | [added: |] 48 | | [added: |] — | | | [added: | | |] 48 | | [added: |]

| Spearville 3 | | | [added: | | | | | |] Kansas | [added: | |] 2012 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 101 | | [removed: (f)] | [added: (d) | | |] 101 | | [added: |]

| Gray County | | | [added: | | | | | |] Kansas | [added: | |] 2001 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 110 | | [removed: (g)] | [added: (f) | | |] 110 | | [added: |]

| Ensign | | | [added: | | | | | |] Kansas | [added: | |] 2012 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 99 | | [removed: (g)] | [added: (f) | | |] 99 | | [added: |]

| Waverly | | | [added: | | | | | |] Kansas | [added: | |] 2016 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 200 | | [removed: (f)] | [added: (d) | | |] 200 | | [added: |]

| Slate Creek | | | [added: | | | | | |] Kansas | [added: | |] 2015 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 150 | | [removed: (f)] | [added: (d) | | |] 150 | | [added: |]

| Rock Creek | | | [added: | | | | | |] Missouri | [added: | |] 2017 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 300 | | [removed: (h)] | [added: (g) | | |] 300 | | [added: |]

| Osborn | | | [added: | | | | | |] Missouri | [added: | |] 2016 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 201 | | [removed: (h)] | [added: (g) | | |] 201 | | [added: |]

| Pratt | | | [added: | | | | | |] Kansas | [added: | |] 2018 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 243 | | [removed: (h)] | [added: (g) | | |] 243 | | [added: |]

| Greenwood Solar | | | [added: | | | | | |] Missouri | [added: | |] 2016 | [added: | |] Solar | [added: | |] — | | [added: |] — | | [added: |] 3 | | [added: |] 3 | | [added: |] — | | | [added: | | |] 3 | | [added: |]

| Prairie Queen | | | [added: | | | | | |] Kansas | [added: | |] 2019 | [added: | |] Wind | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 200 | | [removed: (h)] | [added: (g) | | |] 200 | | [added: |]

| CNPPID (NE) - Hydro | | | [added: | | | | | |] Nebraska | [added: | |] 1941 | [added: | |] Hydro | [added: | |] — | | [added: |] — | | [added: |] — | | [added: |] — | | [added: |] 60 | | [removed: (f)] | [added: (d) | | |] 60 | | [added: |]

| St Joseph Landfill | | | [added: | | | | | |] Missouri | [added: | |] 2012 | [added: | |] Landfill Gas | [added: | |] — | | [added: |] — | | [added: |] 2 | | [added: |] 2 | | [added: |] — | | | [added: | | |] 2 | | [added: |]

| Total Renewable Generation: | | | | | | [added: | | | | | | | | | | | |] 430 | | [added: |] 149 | | [added: |] 5 | | [added: |] 584 | | [removed: 3,130] | [added: 3,827] | | [removed: 3,714] | | [added: | | 4,411 | | |]

| Nuclear: | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | |]

| Wolf Creek | [added: | |] 1 | [removed: (b)] | [added: | (h) | | |] Kansas | [added: | |] 1985 | [added: | |] Uranium | [removed: 552] | | [removed: 552] [added: 554] | | [added: | 554 | | |] — | | [removed: 1,104] | [added: 1,108] | [added: | |] — | | | [removed: 1,104] | | [added: | 1,108 | | |]

| Coal: | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | |]

| Jeffrey Energy Center | | | [added: | | | | | |] Kansas | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | |]

| Steam Turbines | [added: | |] 1-3 | [removed: (b)] | | [added: (h) | | | | | |] 1978, 1980 &1983 | [added: | |] Coal | [added: | |] 2,011 | | [added: |] — | | [added: |] 175 | | [added: |] 2,186 | | [added: |] — | | | [added: | | |] 2,186 | | [added: |]

| Lawrence Energy Center | | | [added: | | | | | |] Kansas | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | |]

| Steam Turbines | [added: | |] 4 & 5 | | | [added: | | | | | |] 1960, 1971 | [added: | |] Coal | [removed: 486] | | [added: 485 | | |] — | | [added: |] — | | [removed: 486] | [added: 485] | [added: | |] — | | | [removed: 486] | | [added: | 485 | | |]

| La Cygne | | | [added: | | | | | |] Kansas | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | |]

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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| Soldier Creek | | | | | | | | | Kansas | | | 2020 | | | Wind | | | — | | | — | | | — | | | — | | | 300 | | | (b) | | | 300 | | |

| Ponderosa | | | | | | | | | Oklahoma | | | 2020 | | | Wind | | | — | | | — | | | — | | | — | | | 198 | | | (c) | | | 198 | | |

| Cimarron Bend III | | | | | | | | | Kansas | | | 2020 | | | Wind | | | — | | | — | | | — | | | — | | | 199 | | | (e) | | | 199 | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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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 | | |

| Total Nuclear: | | | | | | | | | | | | | | | | | | 554 | | | 554 | | | — | | | 1,108 | | | — | | | | | | 1,108 | | |

| Total Coal: | | | | | | | | | | | | | | | | | | 3,209 | | | 2,251 | | | 459 | | | 5,919 | | | — | | | | | | 5,919 | | |

| Hawthorn | | | | | | | | | Missouri | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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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 | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total Gas and Oil | | | | | | | | | | | | | | | | | | 1,632 | | | 1,146 | | | 1,157 | | | 3,935 | | | — | | | | | | 3,935 | | |

| Total | | | | | | | | | | | | | | | | | | 5,825 | | | 4,100 | | | 1,621 | | | 11,546 | | | 3,827 | | | | | | 15,373 | | |

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

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

| | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Total Nuclear: | | | | | | 552 | | 552 | | — | | 1,104 | | — | | | 1,104 | |

| Total Coal: | | | | | | 3,196 | | 2,244 | | 463 | | 5,903 | | — | | | 5,903 | |

| Black Start Unit | 19 | | | 1985 | Oil | — | | 2 | | — | | 2 | | — | | | 2 | |

| Total Gas and Oil | | | | | | 1,625 | | 1,185 | | 1,178 | | 3,988 | | — | | | 3,988 | |

| Total | | | | | | 5,803 | | 4,130 | | 1,646 | | 11,579 | | 3,130 | | | 14,709 | |

Evergy has approximately 10,100 circuit miles of

Evergy's common stock is listed on the New York Stock Exchange under the symbol "EVRG." At February [removed: 24, 2020,] [added: 19, 2021,] Evergy's common stock was held by [removed: 22,695] [added: 21,707] shareholders of record.

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, [removed: 2019,] [added: 2020,] 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).

[removed: ][added: ]

Evergy had no purchases of its equity securities during the three months ended December 31, 2020.

The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (Exchange Act), during the three months ended December 31, 2019.

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 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(a) | |

| October 1 - 31 | | — | | | — | | 16,099,628 | |

| November 1 - 30 | | 628,929 | | (b) | 628,929 | | 15,470,699 | |

| December 1 - 31 | | 635,720 | | (b) | 635,720 | | 14,834,979 | |

| Total | | 1,264,649 | | | 1,264,649 | | 14,834,979 | |

(a) In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock with no expiration date.

See Note 18 to the consolidated financial statements for additional information on Evergy's common stock repurchase program.

(b) In November 2019, a portion of the September 2019 accelerated share repurchase (ASR) agreement was settled, which resulted in the delivery of 628,929 additional shares of Evergy common stock at no additional cost.

The remainder of the September 2019 ASR agreement was settled in December 2019, which resulted in the delivery of 635,720 additional shares of Evergy common stock at no additional cost.

In total, 7,815,204 shares were delivered under the September 2019 ASR agreement at an average price paid per share of $64.03.

| Year Ended December 31 | | [added: | | | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018(b) | | | | [removed: 2017(b)] | | [added: 2017(b)] | | [removed: 2016(b)] | | | | [removed: 2015(b)] [added: 2016(b)] | | |

| Evergy | | [added: | | | |] (dollars in millions except per share amounts) | | | | | | | | | | | | | | | | | | | [added: | | | | | | | |]

| Operating revenues | | [added: | | | |] $ | [removed: 5,148] [added: 4,913] | | | [added: | |] $ | [removed: 4,276] [added: 5,148] | | | [added: | |] $ | [removed: 2,571] [added: 4,276] | | | [added: | |] $ | [removed: 2,562] [added: 2,571] | | | [added: | |] $ | [removed: 2,459] [added: 2,562] | |

| Net income | | [added: | | | |] $ | [removed: 686] [added: 630] | | | [added: | |] $ | [removed: 546] [added: 686] | | | [added: | |] $ | [removed: 337] [added: 546] | | | [added: | |] $ | [removed: 361] [added: 337] | | | [added: | |] $ | [removed: 302] [added: 361] | |

| Net income attributable to Evergy, Inc. | | [added: | | | |] $ | [removed: 670] [added: 618] | | | [added: | |] $ | [removed: 536] [added: 670] | | | [added: | |] $ | [removed: 324] [added: 536] | | | [added: | |] $ | [removed: 347] [added: 324] | | | [added: | |] $ | [removed: 292] [added: 347] | |

| Basic earnings per common share | | [added: | | | |] $ | [removed: 2.80] [added: 2.72] | | | [added: | |] $ | [removed: 2.50] [added: 2.80] | | | [added: | |] $ | [removed: 2.27] [added: 2.50] | | | [added: | |] $ | [removed: 2.43] [added: 2.27] | | | [added: | |] $ | [removed: 2.11] [added: 2.43] | |

| Diluted earnings per common share | | [added: | | | |] $ | [removed: 2.79] [added: 2.72] | | | [added: | |] $ | [removed: 2.50] [added: 2.79] | | | [added: | |] $ | [removed: 2.27] [added: 2.50] | | | [added: | |] $ | [removed: 2.43] [added: 2.27] | | | [added: | |] $ | [removed: 2.09] [added: 2.43] | |

| Total assets at year end | | [added: | | | |] $ | [removed: 25,976] [added: 27,115] | | | [added: | |] $ | [removed: 25,598] [added: 25,976] | | | [added: | |] $ | [removed: 11,624] [added: 25,598] | | | [added: | |] $ | [removed: 11,487] [added: 11,624] | | | [added: | |] $ | [removed: 10,706] [added: 11,487] | |

| Total long-term obligations at year end (a) | | [added: | | | |] $ | [removed: 9,200] [added: 9,785] | | | [added: | |] $ | [removed: 7,472] [added: 9,200] | | | [added: | |] $ | [removed: 3,846] [added: 7,472] | | | [added: | |] $ | [removed: 3,699] [added: 3,846] | | | [added: | |] $ | [removed: 3,379] [added: 3,699] | |

| Cash dividends per common share | | [added: | | | |] $ | [removed: 1.93] [added: 2.05] | | | [added: | |] $ | [removed: 1.735] [added: 1.93] | | | [added: | |] $ | [removed: 1.60] [added: 1.735] | | | [added: | |] $ | [removed: 1.52] [added: 1.60] | | | [added: | |] $ | [removed: 1.44] [added: 1.52] | |

Evergy amounts for [removed: 2017, 2016] [added: 2017] and [removed: 2015] [added: 2016] reflect the results of operation and financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction.

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| Report of Independent Registered Public Accounting Firm | | | [added: | | | | | |]

| [removed: [Evergy, Inc.](#s769031302F975775A028D78EBE4362D8)] [added: Evergy, Inc.] | | [removed: [57](#s769031302F975775A028D78EBE4362D8)] | [added: | | | | | |]

| [removed: [Evergy] [added: Evergy] Kansas Central, [removed: Inc.](#s3580958B594651EBA29CDD412717B360)] [added: Inc.] | | [removed: [60](#s3580958B594651EBA29CDD412717B360)] | [added: | | | | | |]

| [removed: [Evergy] [added: Evergy] Metro, [removed: Inc.](#s1E23E952641D5ECEA2C075D73C8EADCE)] [added: Inc.] | | [removed: [61](#s1E23E952641D5ECEA2C075D73C8EADCE)] | [added: | | | | | |]

| [removed: Evergy, Inc.] [added: EVERGY, INC.] | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Statements of Comprehensive [removed: Income](#s5CCBD507B1015AB491DCFA039B82DF31)] [added: Income] | | [removed: [62](#s5CCBD507B1015AB491DCFA039B82DF31)] | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Balance [removed: Sheets](#s004DC18BA1DC5AC5A7C28BC9E6A92BC2)] [added: Sheets] | | [removed: [63](#s004DC18BA1DC5AC5A7C28BC9E6A92BC2)] | [added: | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Statements of Cash [removed: Flows](#sEF39B4E613295B0C89C014807A8587A9)] [added: Flows] | | [removed: [65](#sEF39B4E613295B0C89C014807A8587A9)] | [added: | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Statements of Changes in [removed: Equity](#s0037E551E0275EE08A63B8363A4486E5)] [added: Equity] | | [removed: [66](#s0037E551E0275EE08A63B8363A4486E5)] | [added: | | | | | | | | | | | | | | | | | |]

| [removed: Evergy Kansas Central, Inc.] [added: EVERGY KANSAS CENTRAL, INC.] | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Statements of [removed: Income](#s9D7582D5ACD853C295A4F4C9C818AC1B)] [added: Income] | | [removed: [67](#s9D7582D5ACD853C295A4F4C9C818AC1B)] | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Balance [removed: Sheets](#s6B368064F931523AAEC4F0734E236625)] [added: Sheets] | | [removed: [68](#s6B368064F931523AAEC4F0734E236625)] | [added: | | | | | | | | | | | | | | | | | | | | |]

| [removed: [Consolidated] [added: Consolidated] Statements of Cash [removed: Flows](#s5148E943A8C3529CA7D1F7692C37AD3F)] [added: Flows] | | [removed: [70](#s5148E943A8C3529CA7D1F7692C37AD3F)] | [added: | | | | | | | | | | | | | | |]