Evergy (EVRG) 10-K risk factor changes: FY2021 vs FY2020

Prices are established by regulators and may not be sufficient to [removed: result in a recovery of] [added: recover] costs or provide for a return on investment.

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

In addition, [removed: effective as of January 1, 2019,] Evergy Metro and Evergy Missouri West [removed: elected into] [added: utilize a] plant-in service accounting [removed: (PISA), which, by law,] [added: (PISA) legislative mechanism in Missouri, which] requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case and limits the extent to which prices can increase [removed: thereafter.][added: thereafter to approximately 3% on an annualized basis.]

FERC, the North American Electric Reliability Corporation (NERC) and SPP have implemented and enforce an extensive set of transmission system reliability, cybersecurity and critical infrastructure protection standards that [removed: apply to public utilities.]

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 [added: 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.]

[removed: compliance costs or adverse rate consequences, any] [added: Any] of [removed: which] [added: the foregoing] could have a material adverse impact on [removed: their] [added: the Evergy Companies'] results of operations, financial position and cash flows.

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

Business - Environmental Matters and Note [removed: 15] [added: 14] to the consolidated financial statements for additional information.

[removed: Compliance] [added: The failure to comply] with these laws, regulations and requirements [removed: requires significant capital and operating resources, and the failure to comply] could result in substantial fines, injunctive relief and other sanctions.

[removed: In addition, there] [added: There] is [added: also] a risk of lawsuits alleging violations of environmental laws, regulations or requirements, claiming creation of a public nuisance or other matters, and seeking injunctions or monetary damages or other relief.

The [removed: STP includes an increase in targeted] [added: Evergy Companies plan to make significant] capital investments [added: in renewable generation and] to enhance the customer experience, improve reliability and resiliency and improve efficiency, which are expected to be funded with cash flows from operations and debt.

If cash flows from operations are lower than [added: expected or the costs of these capital investments are higher than] expected, additional debt will be required to fund the investments, which, in turn, may create pressure on the Evergy Companies' credit ratings or result in a ratings downgrade and increase their cost of capital.

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 [added: impact liquidity.]

In addition, from time to time Evergy [added: has in the past and] may [added: in the future] guarantee debt obligations of its subsidiaries.

Although the Evergy Companies generally have regulatory mechanisms that allow them to recover the cost of fuel and purchased power [added: 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 [added: and the wholesale purchase of electricity] as part of their regulated electric operations in addition to limited energy marketing activities and the management of third-party generation facilities.

Exposure to these risks is affected by a number of factors, including the availability and cost of fuel and power that the Evergy Companies [removed: may] purchase on the wholesale markets to [added: serve customer load or to] satisfy their regulatory or contractual obligations, the ability or effectiveness of strategies utilized by the Evergy Companies to hedge these risks, the extent to which the Evergy Companies may be required to post collateral for the benefit of third parties and the risk that counterparties fail to fulfill their obligations to the Evergy Companies.

[removed: Market volatility can] increase or create unanticipated risks.

The [removed: STP] [added: Evergy Companies' strategy] includes [added: significant] planned reductions in operating and maintenance expense and [added: significant] planned increases in capital investments.

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

[added: 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, [removed: flooding] [added: flooding, drought] and ice storms, can be destructive and cause outages and property damage that can result in increased expenses, lower revenues and additional restoration costs.

These efforts could also result in the early retirement of generation facilities, which could result in stranded costs if regulators disallow recovery of investments that were prudent when originally [removed: made.][added: made and included in rates.]

The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; [removed: operator] [added: employee] error or contractor or subcontractor failure; problems that delay or increase the cost of returning facilities to service after outages; limitations that may be imposed by equipment conditions or environmental, safety or other regulatory requirements; fuel supply or fuel transportation reductions or interruptions; labor disputes; difficulties with the implementation or operation of information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, [removed: terrorism,] [added: terrorism or acts of war,] severe weather, pandemics or other similar occurrences.

Many of the Evergy Companies' generation, transmission and distribution resources are aged, which increases the risk of unplanned outages, reduced [added: generation output and higher maintenance expense.]

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

The Evergy Companies' information technology networks and infrastructure, as well as the networks and infrastructure belonging to third-party service [removed: providers] [added: providers,] are vulnerable to damage, disruptions or shutdowns due to attacks or breaches by hackers or other unauthorized third parties; error or malfeasance by [removed: one or more employees] [added: employees, contractors] or service providers; [added: unintended consequences related to] software or hardware [removed: upgrades;] [added: upgrades,] additions or replacements; malicious software code; [added: vulnerabilities in third-party software code;] telecommunication failures; [added: the lack of availability of qualified employees and contractors;] natural disasters or other catastrophic [removed: events.][added: events; or criminal activity, terrorist attacks or acts of war.]

[removed: The COVID-19 pandemic has changed] [added: Driven in part by] the [removed: way] [added: COVID-19 pandemic,] the Evergy Companies [removed: operate and has] [added: have] increased the use of technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities.

Public reports have indicated an increase in cyberattacks in general since the start of the pandemic due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which [removed: employees and third parties] [added: people] interact with [removed: the Evergy Companies'] [added: their] information technology infrastructure.

The occurrence of any of these events could, among other things, impact the reliability or safety of the Evergy Companies' generation, transmission and distribution [added: systems and information] systems; result in the erasure of data or render the Evergy Companies' equipment, or the equipment of third-party service providers, unusable; impact the Evergy Companies' ability to conduct business in the ordinary course; reduce sales; expose the Evergy Companies and their customers, employees and vendors to a risk of loss or misuse of information; [removed: and] result in legal claims or proceedings, liability or regulatory [removed: penalties,] [added: penalties;] damage the Evergy Companies' [removed: reputation] [added: reputation;] or otherwise harm [removed: their business.][added: the Evergy Companies' results of operations, financial position and cash flows.]

The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning [removed: safeguarding] [added: cybersecurity] and [removed: maintaining the confidentiality of] [added: safeguarding] their [removed: security,] customer and business information.

For example, NERC has issued comprehensive regulations and standards surrounding the security of [added: the] bulk power [removed: systems] [added: system, including both physical] and [removed: is] [added: cybersecurity, and] continually [removed: in] [added: evaluates] the [removed: process of developing] [added: necessity for] updates and new requirements with which the [removed: utility industry] [added: Evergy Companies] 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 [added: and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties.]

Furthermore, the non-compliance [removed: of] [added: by] other utilities [removed: with applicable] [added: subject to similar] regulations or the occurrence of a serious security event at other utilities could result in increased regulation or oversight, both of which could increase the Evergy Companies' costs and [added: adversely] impact their financial results.

The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and [removed: distribution] [added: distribution, and information] systems or to the electrical grid in general, reduced sales and could increase the cost of insurance [removed: coverage or result in a decline in the U.S. economy.][added: coverage.]

Furthermore, [added: although the Evergy Companies maintain information security risk] insurance [added: coverage, such insurance] may not be adequate to cover any associated losses.

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

The Evergy Companies' ability to implement [removed: the] [added: these] investments [removed: 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 [removed: labor.][added: labor, which, in turn, has increased inflationary pressures.]

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

Evergy Metro and Evergy Missouri West are currently operating under PISA constraints.

Each filed general rate cases in 2022 and will be subject to PISA constraints for three years following conclusion of the general rate cases.

The rate cases are expected to conclude by December 2022.

Furthermore, while inflation has been relatively muted in recent years, during 2021, the United States' economy experienced a substantial rise in the inflation rate.

While the Federal Reserve Bank has announced certain measures to combat rising inflation, there is increased uncertainty in the near-term outlook as to whether inflation will continue.

Increases in inflation raise the Evergy Companies' costs for labor, materials and services.

A failure to recover increased capital costs could result in under-recovery of costs.

In addition, Transource, which Evergy owns a 13.5% interest, is focused on the development of competitive electric transmission projects across the United States and faces similar risks with respect to projects located in regulatory jurisdictions outside of Kansas and Missouri.

apply to public utilities.

In general, over time these laws and regulations have become and continue to become increasingly stringent and compliance with these laws and regulations require an increasing share of capital and operating resources, which may reduce the amount of resources available for other business objectives, including capital investments.

Compliance with these laws, regulations and requirements requires significant capital and operating resources.

Regulators may also disagree with the Evergy Companies' interpretation or application of these laws, regulations and requirements.

For example, Evergy Kansas Central recently decommissioned the Tecumseh Energy Center and removed all coal combustion residuals (CCRs) from a surface impoundment in a manner it believed complied with federal law, but the EPA has recently commenced an evaluation of whether Evergy Kansas Central should have taken additional or alternative actions, even though the facility is closed.

The EPA has begun issuing CCR Part A rule extension application determinations for companies that applied for approval to operate unlined or clay-lined impoundments past April 2021.

The Evergy Companies did not apply for an extension, however, these proposed determinations include extensive CCR rule interpretations and compliance expectations that may impact all owners of CCR units.

The new interpretations could require modified compliance plans such as different methods of CCR unit closure.

Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action could result in substantial costs or operational impacts.

In January 2022, the EPA announced changes following a tour by the EPA administrator conducted in the second half of 2021 to address issues in communities that are marginalized, underserved and overburdened by pollution.

These changes will include additional unannounced inspections of suspected non-compliant facilities, deploying new assets to monitor air pollution and a general increase in overall monitoring and oversight.

The EPA's announcement focused on industries in Louisiana, Mississippi and Texas but includes similar agency-wide action in parallel.

The Evergy Companies have multiple power plants located in communities that would be considered a higher priority by the EPA based on existing demographics.

These sites could be subject to additional monitoring and unannounced inspections in the future.

In 2021, a credit ratings agency assigned the Evergy Companies a negative outlook, while affirming ratings, due to perceived risk related to increased capital expenditures and the ability to earn a return of and on those investments through upcoming rate cases.

Market volatility can

The Evergy Companies' strategy also includes a different mix of capital investments than has been pursued in the past, including significant capital investments in renewable generation.

The Evergy Companies' strategy also includes the planned retirement of coal-fired generation resources.

In addition, the Evergy Companies may utilize legislative mechanisms known as securitization to facilitate the retirement of coal-fired generation, which will eliminate future returns on the investment that was originally made by the Evergy Companies in those coal-fired generating facilities and reduce the Evergy's Companies results of operations and financial position.

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

The Evergy Companies have a goal to achieve net-zero CO2 emissions by 2045 with an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030.

The trajectory and timing of reaching the goal could be impacted by many external factors, including enabling technology developments, the reliability of the power grid, availability of transmission capacity, and supportive energy policies and regulations, and other factors.

Certain insurers are also choosing to limit their exposure to companies with coal-fired generation, which may result in increased premiums and reduced scope of coverage.

The Evergy Companies are subject to recurring, independent, third-party audits with respect to adherence to these regulations and standards.

Geopolitical matters,

including terrorist attacks and acts of war, may increase the likelihood of such attacks.

The Evergy Companies have been subject to attempted cyber attacks from time to time, and will likely continue to be subject to such attempted attacks, but these prior attacks have not had a material impact on their operations.

However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future.

The Evergy Companies' strategy includes a significant amount of planned capital investments.

The Evergy Companies' workforce includes professional, managerial and technical employees.

Evergy competes for qualified employees with these skills on a national level.

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

impact liquidity.

necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurred.

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 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.

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.

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.

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

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

The STP includes an increase in targeted capital investments.

The collective bargaining agreements with the five IBEW locals all expire in 2021 and the collective bargaining agreement with the UGSOA expires in 2022.

within the operating constraints of a unit, at any given time.

general rate case.

Further, in 2020, the Evergy Companies have experienced lower retail electric sales as a result of decreases in weather-normalized commercial and industrial demand.

In addition, the COVID-19 pandemic led to disruption and volatility in the financial markets, which in turn could impair the Evergy Companies' ability to access the capital markets or increase their cost of capital.

The following MD&A generally discusses [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] items and year-to-year comparisons between [removed: 2020] [added: 2021] and [removed: 2019.][added: 2020.]

Discussions of [removed: 2018] [added: 2019] items and year-to-year comparisons between [removed: 2019] [added: 2020] and [removed: 2018] [added: 2019] can be found in MD&A in Part II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31, [removed: 2019.][added: 2020.]

Transource is focused on the development of [removed: competitive electric transmission projects.]

Evergy expects to continue operating its integrated utilities within the currently existing regulatory [removed: frameworks.][added: frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders.]

Significant elements of [removed: the] [added: Evergy's] plan [added: to achieve its strategic objectives] include:

- targeting [removed: a] [added: an annual] reduction of approximately [removed: $330] [added: $345] million of operating and maintenance expense by [removed: 2024] [added: 2025] from 2018 adjusted operating and maintenance expense (non-GAAP) (see "Non-GAAP Measures" within this Executive Summary for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure);

- targeting approximately [removed: $8.9] [added: $10.7] billion of expected base capital investments through [removed: 2024.][added: 2026 including approximately $2.0 billion in renewable generation.]

See "Liquidity and Capital Resources; Capital Expenditures", for further information regarding Evergy's projected capital expenditures through [removed: 2024.][added: 2026; and]

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day [removed: period.][added: period (February 2021 winter weather event).]

[removed: This] [added: The February 2021] winter weather event resulted in an increase in the demand for natural gas used by the Evergy Companies for generating electricity and also contributed to the limited availability of other generation resources, including coal and renewables, within the SPP Integrated Marketplace.

[removed: Evergy estimates that as] [added: As] part of the [added: February 2021] winter weather event, [removed: it experienced an increase in] [added: Evergy incurred] natural gas and purchased power costs, net of wholesale revenues, of [removed: approximately $300] [added: $365.5] million.

This [removed: $300] [added: $365.5] million [removed: increase in] [added: of] net fuel and purchased power costs was primarily driven by [removed: a $260] [added: $296.4] million [removed: increase in] [added: of] costs at Evergy Missouri West and [removed: a $100] [added: $133.9] million [removed: increase] [added: of costs] at Evergy Kansas Central, partially offset by [removed: a $60] [added: $64.8] million [added: of] net [removed: increase in] wholesale revenues at Evergy Metro.

While the Evergy Companies expect to recover substantially all of any increased fuel and purchased power costs related to the [added: February 2021] winter weather event from customers, [removed: it is possible that] the timing of the cost recovery could be delayed or spread over a longer than typical recovery timeframe by the KCC or the MPSC [added: to help moderate monthly customer bill impacts] given the extraordinary nature of the [added: February 2021] winter weather event.

As a result of the elevated market prices experienced in regional power markets [removed: in February 2021] across the central and southern United States driven by the [added: February 2021] winter weather event discussed above, [removed: the] Evergy [removed: Companies currently expect that their] [added: and Evergy Kansas Central recorded $94.5 million of] energy marketing margins [removed: will be higher] in 2021 [removed: compared with historical results.][added: related to the February 2021 winter weather event, primarily driven by activities in the Electric Reliability Council of Texas (ERCOT).]

See Note [removed: 5] [added: 14] to the consolidated financial statements for information regarding [removed: regulatory proceedings.][added: environmental matters.]

| | | | | | | | | | | | | | | | | | | | | | [removed: 2020] [added: 2021] | | | | | | Change | | | | | | [removed: 2019] [added: 2020] | | |

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

| Net income attributable to Evergy, Inc. | | | | | | | | | | | | | | | | | | | | | $ | [removed: 618.3] [added: 879.7] | | | | | $ | [removed: (51.6)] [added: 261.4] | | | | | $ | [removed: 669.9] [added: 618.3] | |

| Earnings per common share, diluted | | | | | | | | | | | | | | | | | | | | | [removed: 2.72] [added: 3.83] | | | | | | [removed: (0.07)] [added: 1.11] | | | | | | [removed: 2.79] [added: 2.72] | | |

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

[removed: For 2019,] Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) [added: for 2021] were [removed: $694.0] [added: $812.6] million or [removed: $2.89] [added: $3.54] per share, respectively.

In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the [added: income or] costs resulting from [removed: rebranding, voluntary] [added: non-regulated energy marketing margins from the February 2021 winter weather event and gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility, as well as costs resulting from executive transition,] severance, advisor [removed: expenses] [added: expenses, COVID-19 vaccine incentives] and the revaluation of deferred tax assets and liabilities from [removed: a change in] the Kansas corporate income tax [removed: rate.][added: rate change.]

| Net income attributable to Evergy, Inc. | | | $ | [removed: 618.3] [added: 879.7] | | | | | $ | [removed: 2.72] [added: 3.83] | | | | | $ | [removed: 669.9] [added: 618.3] | | | | | $ | [removed: 2.79] [added: 2.72] | |

| [removed: Rebranding] [added: Executive transition] costs, [removed: pre-tax(a)] [added: pre-tax(c)] | | | [removed: —] [added: 10.8] | | | | | | [removed: —] [added: 0.05] | | | | | | [removed: 12.1] [added: —] | | | | | | [removed: 0.05] [added: —] | | |

| [removed: Voluntary severance] [added: Severance] costs, [removed: pre-tax(b)] [added: pre-tax(d)] | | | [removed: 66.3] [added: 2.8] | | | | | | [removed: 0.29] [added: 0.01] | | | | | | [removed: 19.8] [added: 66.3] | | | | | | [removed: 0.08] [added: 0.29] | | |

| Advisor expenses, [removed: pre-tax(c)] [added: pre-tax(e)] | | | [removed: 32.3] [added: 11.6] | | | | | | [removed: 0.14] [added: 0.05] | | | | | | [removed: —] [added: 32.3] | | | | | | [removed: —] [added: 0.14] | | |

| Income tax [removed: benefit(d)] [added: expense (benefit)(h)] | | | [removed: (25.2)] [added: 20.8] | | | | | | [removed: (0.11)] [added: 0.09] | | | | | | [removed: (7.8)] [added: (25.2)] | | | | | | [removed: (0.03)] [added: (0.11)] | | |

| Kansas corporate income tax [removed: change(e)] [added: change(i)] | | | [removed: 13.8] [added: —] | | | | | | [removed: 0.06] [added: —] | | | | | | [removed: —] [added: 13.8] | | | | | | [removed: —] [added: 0.06] | | |

| Adjusted earnings (non-GAAP) | | | $ | [removed: 705.5] [added: 812.6] | | | | | $ | [removed: 3.10] [added: 3.54] | | | | | $ | [removed: 694.0] [added: 705.5] | | | | | $ | [removed: 2.89] [added: 3.10] | |

[removed: (a)Reflects external] [added: (d)Reflects severance] costs incurred [removed: to rebrand] [added: associated with certain voluntary severance programs at] the [removed: legacy Westar Energy and KCP&L utility brands to] Evergy [added: Companies] and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

[removed: (b)Reflects severance costs] [added: (e)Reflects advisor expenses] incurred associated with [removed: certain voluntary severance programs at the Evergy Companies] [added: strategic planning] and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

[removed: (c)Reflects advisor expenses] [added: (f)Reflects incentive compensation costs] incurred associated with [removed: strategic planning] [added: employees becoming fully vaccinated against COVID-19] and are included in operating and maintenance expense on the consolidated statements of comprehensive income.

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

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

Evergy's 2018 adjusted operating and maintenance expense (non-GAAP) is used as the base for [added: Evergy's] targeted operating and maintenance expense reductions by [removed: 2024 as part of Evergy's STP.][added: 2025.]

See Note [removed: 15] [added: 16] to the consolidated financial statements for information regarding [removed: environmental matters.][added: related party transactions.]

See Note [removed: 17] [added: 9] to the consolidated financial statements for [added: additional] information regarding [removed: related party transactions.][added: the accounting for pensions.]

See Note [removed: 10] [added: 9] to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.

| Discount rate | | | 0.5 | | % | increase | | | | | | $ | [removed: (221.2)] [added: (193.6)] | | | | | | | | $ | [removed: (21.9)] [added: (18.5)] | | | | |

| Rate of return on plan assets | | | 0.5 | | % | increase | | | | | | — | | | | | | | | | [removed: (8.2)] [added: (7.9)] | | | | | |

competitive electric transmission projects.

The core tenets of Evergy's strategy are as follows:

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

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

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

- targeting a 70% reduction of CO2 emissions by 2030 (from 2005 levels) and net-zero by 2045 through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants.

See "Transitioning Evergy's Generation Fleet" in Part I, Item 1., Business, for additional information.

In January 2022, Evergy Metro and Evergy Missouri West filed applications with the MPSC to request increases to their retail electric revenues of $43.9 million and $27.7 million, respectively, before rebasing fuel and purchased power expense, with a return on equity of 10%.

The requests reflect increases related to higher property taxes and the recovery of infrastructure investments made to improve reliability and enhance customer service and were also partially offset by significant customer savings and cost reductions created since the Great Plains Energy and Evergy Kansas Central merger in 2018.

Evergy Metro and Evergy Missouri West are also requesting the implementation of tracking mechanisms for both property tax expense and credit loss expense and the creation of a storm reserve as part of their requests with the MPSC.

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

Evergy Equity Investment

From time to time, Evergy makes limited equity investments in early-stage energy solution companies.

These investments have historically not had a significant impact on Evergy's results of operations.

In October 2021, an equity investment in which Evergy held a minority stake through an initial investment of $3.7 million was acquired through a transaction involving a special purpose acquisition company (SPAC).

As a result of its equity investment in the company that was acquired in the SPAC transaction, Evergy received shares of the resulting public company upon the closing of the transaction, which are subject to a restriction on sale for 150 days.

Evergy recorded a $27.7 million unrealized gain in the fourth quarter of 2021 for the conversion of its shares into the newly formed public company and based on the closing share price as of December 31, 2021 adjusted to reflect the restriction on the sale of the shares.

The fair value of Evergy's investment is largely dependent on the performance of the new public company's stock, which is subject to significant market volatility and also affected by the restriction on sale of the shares until March 2022, when the restriction expires.

Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility.

See "Non-GAAP Measures" within this Executive Summary for additional information.

LEC Unit 4 Securitization

In April 2021, the state of Kansas passed the Utility Financing and Securitization Act (UFSA) which allows certain public utilities, including Evergy Kansas Central and Evergy Metro, to securitize utility assets in order to recover energy transition costs relating to the early retirement of certain generating assets.

To recover the energy transition costs through securitization as allowed in the UFSA, a public utility must obtain a predetermination order from the KCC finding that the retirement of the subject generation facility is reasonable.

Upon the receipt of a successful predetermination order, the public utility must then file an application with the KCC for a financing order to issue securitized bonds to recover the energy transition costs.

The UFSA also allows the pursuit of securitization to help finance qualified extraordinary expenses, such as fuel costs incurred during extreme weather events.

In September 2021, Evergy Kansas Central filed a predetermination request with the KCC for the ratemaking principles and treatment related to its planned investment in approximately 190 MW of solar generation and the planned retirement of coal-fired LEC Unit 4 and related coal-handling facilities for LEC Units 4 and 5, both of which are expected to occur between December 2023 and the first half of 2024.

In February 2022, Evergy Kansas Central withdrew its predetermination request with the KCC in order to finalize definitive documentation associated with the solar investment and to develop additional information to enable the KCC to evaluate its predetermination request.

Evergy Kansas Central anticipates refiling its predetermination request, including this additional information, later in 2022.

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

The amount of purchased power costs incurred by the Evergy Companies during the February 2021 winter weather event is subject to resettlement activity and further review by the SPP.

This review and any subsequent resettlement activity could

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

As of December 31, 2021, the Evergy Companies have deferred substantially all of the fuel and purchased power costs, net of wholesale revenues, related to the February 2021 winter weather event to a regulatory asset or liability pursuant to their fuel recovery mechanisms and an emergency AAO issued by the KCC in February 2021.

Further, in June 2021, Evergy Metro and Evergy Missouri West filed a joint request for an AAO with the MPSC regarding the deferral and subsequent recovery or refund of the February 2021 winter weather event amounts.

These energy marketing margins are recorded net in operating revenues on the Evergy Companies' statements of income and comprehensive income.

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

Bluescape Energy Partners, LLC (Bluescape) Securities Purchase Agreement

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

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

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

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.

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

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.

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.

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

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.

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.

These policies, such as temporarily extending payment options and offering incentives for customer payments on overdue balances as well as the elimination of late payment fees and disconnections for non-payment, could lead to lower levels of operating cash flows compared to historical levels for the Evergy Companies.

In addition, these policies, along with lower electric sales as a result of the overall reduction in demand discussed above, could also lead to the additional repayment of portions of the Evergy Companies' borrowings under receivable sale facilities.

Finally, the Evergy Companies have incurred, and will continue to incur, expenses related to monitoring the COVID-19 pandemic and modifying operations in response to the pandemic that are recorded in operating and maintenance expense.

In May 2020, Evergy Kansas Central, Evergy Metro and Evergy Missouri West filed joint requests for AAOs with the KCC and MPSC, as applicable, that would allow for the extraordinary costs and lost revenues incurred by the

companies, net of any COVID-19-related savings, as a result of the COVID-19 pandemic to be considered for future recovery from customers as part of their next rate cases.

The KCC approved the AAO request in July 2020.

In October 2020, Evergy Metro and Evergy Missouri West entered into a non-unanimous stipulation and agreement with the MPSC staff and other intervenors that would allow Evergy Metro and Evergy Missouri West to defer to a regulatory asset certain net incremental costs incurred associated with the COVID-19 pandemic for consideration in their next rate cases.

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

In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and [removed: to fund] non-qualified retirement [removed: benefits] [added: benefits, as well as limited equity investments in early-stage energy solution companies,] give rise to security price risk.

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

Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers [removed: consume.][added: consume, as well as the wholesale market prices received by the Evergy Companies' generation resources and the wholesale market prices paid to procure power to serve customer load or satisfy regulatory or contractual obligations.]

[removed: Evergy also has] [added: At December 31, 2021, 2.8% of Evergy's long-term debt was variable rate debt,] short-term borrowings and current maturities of fixed rate debt that [removed: are] [added: were] exposed to interest rate risk.

Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate [removed: debt] [added: debt, short-term borrowings] and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.

[added: At December 31, 2021,] Evergy had [removed: $1,038.7] [added: $1,815.3] million of variable rate debt, [removed: including notes payable, commercial paper] [added: short-term borrowings] and current maturities of fixed rate [removed: debt as of December 31, 2020.][added: debt.]

A 100-basis-point change in interest rates applicable to this debt would impact [added: Evergy's] income before income taxes on an annualized basis by approximately [removed: $6.2] [added: $16.1] million.

As of December 31, [removed: 2020,] [added: 2021,] these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet.

In addition to Evergy's investments in debt and equity securities in its nuclear decommissioning and pension trusts, Evergy also makes limited equity investments in early-stage energy solution companies.

These limited equity investments are often in privately-owned companies that do not have reasonably determinable fair values.

However, from time to time, these investments could have changes in fair value as a result of acquisitions, mergers, initial public offerings, or observable market transactions for similar investments.

Evergy typically seeks to liquidate its position in these companies as soon as practicable following the occurrence of an exit event such as an acquisition or initial public offering (including after the expiration of any related lock-up provisions), which serves to largely mitigate any ongoing market risk related to the investments.

At December 31, 2021, Evergy had a $31.4 million investment, including a $27.7 million unrealized gain, in an early-stage energy solution company that was acquired and became a publicly traded company through a transaction involving a SPAC in the fourth quarter of 2021.

This investment is currently subject to a lock-up provision on its sale until March 2022 and is exposed to significant equity price risk.

A 50% decline in the stock price of this investment would impact Evergy's income before income taxes by approximately $14 million.

Evergy uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the gains or losses related to equity investments which are subject to a restriction on sale that can create period to period volatility.

See "Non-GAAP Measures" within Part II, Item 7, MD&A - Executive Summary for additional information.

impact related to changes in interest rates.

At December 31, 2020, 3% of Evergy's long-term debt was variable rate debt.

The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., [removed: operates] [added: operate] in one segment).

Evergy serves approximately [removed: 1,620,400] [added: 1,640,800] customers located in Kansas and Missouri.

Customers include approximately [removed: 1,421,800] [added: 505,000] residences, [removed: 191,700] [added: 64,600] commercial [removed: firms] [added: firms,] and [removed: 6,900] [added: 1,900] industrials, municipalities and other electric utilities.

| | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Residential | | | [removed: 39%] [added: 34%] | | | | | | [removed: 37%] [added: 39%] | | | | | | 37% | | |

| Commercial | | | [removed: 33%] [added: 30%] | | | | | | [removed: 35%] [added: 33%] | | | | | | [removed: 32%] [added: 35%] | | |

| Industrial | | | [removed: 12%] [added: 11%] | | | | | | 12% | | | | | | 12% | | |

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

| Other | | | [removed: 5%] [added: 6%] | | | | | | [removed: 3%] [added: 5%] | | | | | | [removed: 2%] [added: 3%] | | |

| | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

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

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

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

The Evergy Companies are also subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and [removed: rates] [added: rates, the issuance of securities in certain cases] and other matters.

Evergy expects its [removed: 2021] [added: 2022] Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues.

See Item 7 MD&A, Critical Accounting Policies section, and Note [removed: 5] [added: 4] to the consolidated financial statements for additional information concerning regulatory matters.

Management believes Evergy will be able to meet its future power purchase needs due to the coordination of planning and operations in the SPP region and existing power purchase agreements; however, price and availability of power purchases may be impacted during periods of high [removed: demand.][added: demand or reduced supply.]

| Fuel Type | | | Estimated [added: 2022] MW Capacity | | | Percent of Total Capacity | | | | | |

| Natural gas and oil | | | [removed: 3,935] [added: 3,971] | | | 26 | | | | | |

| Solar, landfill gas and hydroelectric (b) | | | [removed: 72] [added: 78] | | | 1 | | | | | |

| Total capacity | | | [removed: 15,373] [added: 15,396] | | | 100 | | | % | | |

Includes owned generating capacity of 579 MWs and long-term power purchase agreements of approximately [removed: 3,760] [added: 3,747] MWs of wind generation that expire from 2028 through 2048.

(b) Includes a long-term power purchase agreement for approximately [removed: 60] [added: 66] MWs of hydroelectric generation that expires in 2023.

Evergy's projected peak summer demand for [removed: 2021] [added: 2022] is approximately [removed: 10,300] [added: 10,200] MWs.

Evergy expects to meet its projected capacity requirements for [removed: 2021] [added: 2022] with its existing generation assets and power purchases.

[removed: See "Transforming] [added: "Transitioning] Evergy's Generation Fleet" [added: below] for further information regarding Evergy's long-term strategy with regards to its generating assets and power purchases.

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

See Note [removed: 15] [added: 14] to the consolidated financial statements for additional information.

[removed: Transforming] [added: Transitioning] Evergy's Generation Fleet

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

The integrated resource plan considers forecasts of future electricity demand, fuel prices, transmission improvements, [removed: new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy]

Since 2005, the Evergy Companies have added over 4,400 MWs of [removed: renewables,] [added: renewable generation,] while retiring more than 2,400 MWs of fossil generation.

On its website, [removed: www.evergy.com,] [added: http://investors.evergy.com,] Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water.

See Note [removed: 15] [added: 14] to the consolidated financial statements for information regarding environmental matters.

The actual [removed: 2020] [added: 2021] fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.

| Wind, hydroelectric, landfill gas and solar | | | [removed: 29] [added: 30] | | | | | | | | | [removed: 2.31] [added: 2.06] | | | | | | | | | | | |

| Natural gas and oil | | | 4 | | | | | | | | | [removed: 2.91] [added: 11.72] | | | | | | | | | | | |

| Total | | | 100 | | | % | | | | | | [removed: $1.71] [added: 2.12] | | | | | | | | | | | |

During [removed: 2021,] [added: 2022,] Evergy's generating units, including jointly-owned units, are projected to use approximately [removed: 18] [added: 19] million tons of coal.

The coal to be provided under these contracts is expected to satisfy approximately [removed: 60%] [added: 85%] of the projected coal requirements for [removed: 2021] [added: 2022] and approximately 10% for [removed: 2022.][added: each of 2023 and 2024.]

Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on empowering a better future for its customers, communities, employees and shareholders.

The core tenets of Evergy's strategy are as follows:

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

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

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

| Wholesale | | | 13% | | | | | | 5% | | | | | | 7% | | |

| Coal | | | 5,913 | | | 38 | | | % | | |

| Wind (a) | | | 4,326 | | | 28 | | | | | |

See

In 2021, Evergy achieved a reduction of CO2 emissions by about half from 2005 levels.

Evergy has a goal to achieve net-zero CO2 emissions by 2045, which includes an interim goal of a 70% reduction of CO2 emissions from 2005 levels by 2030.

The trajectory and timing of reaching Evergy's net-zero CO2 emissions goal are dependent on enabling technology developments, the reliability of the power grid, and supportive energy policies and regulations and could also be impacted by political, legal and regulatory actions.

new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives.

See Item 2, Properties, for additional information regarding the Evergy Companies' renewable generation resources.

| Fuel | | | 2021 | | | | | | | | | 2021 | | | | | | | | | | | |

| Coal | | | 50 | | | % | | | | | | 1.94¢ | | | | | | | | | | | |

| Uranium | | | 16 | | | | | | | | | 0.64 | | | | | | | | | | | |

Customer Energy Efficiency Programs

The Evergy Companies have implemented, and continue to offer, energy efficiency programs to help customers with their energy efficiency needs and to help manage energy costs.

Both Missouri and Kansas have passed legislation promoting the implementation of cost-effective demand-side management programs and allowing for the recovery of these program costs from customers, along with the potential to earn performance incentives based upon certain criteria.

In Missouri, Evergy Metro and Evergy Missouri West currently offer a suite of energy efficiency programs for customers under the Missouri Energy Efficiency Investment Act (MEEIA).

The current portfolio of programs was approved by the MPSC in 2019 and provides for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved.

The costs of the programs are recovered from customers through a rider mechanism.

Evergy Metro's and Evergy Missouri West's current MEEIA programs as authorized by the MPSC expire at the end of 2022 and Evergy Metro and Evergy Missouri West currently anticipate requesting an extension of these programs.

In Kansas, Evergy Kansas Central and Evergy Metro requested KCC authorization in December 2021 for a suite of energy efficiency programs for customers under the Kansas Energy Efficiency Investment Act (KEEIA).

The requested portfolio of programs would provide for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based upon demand and energy savings achieved.

The costs of the program would be recovered from customers through a rider mechanism.

Evergy Kansas Central's and Evergy Metro's proposed programs would be effective in 2023 and would expire in 2026.

The KCC's decision on Evergy Kansas Central's and Evergy Metro's KEEIA request is expected in the second half of 2022.

The Evergy Companies currently have three labor agreements that expire in 2024 and three labor agreements currently under negotiation that have expired and are operating under an extension.

| Lesley L. Elwell (e) | | | 51 | | | Senior Vice President and Chief Human Resources Officer | | | 2021 | | |

He previously served as Executive Vice President, Strategy and Chief Administrative Officer of Evergy, Inc. (2018-2021).

Mr. Greenwood intends to retire in the middle of 2022 and transition to an advisory role thereafter through 2024.

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

| Wholesale | | | 5% | | | | | | 7% | | | | | | 10% | | |

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

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

peak demand reduction programs.

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.

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

efficiency and demand response initiatives.

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

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

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

Evergy Kansas Central maintains natural gas transportation arrangements with Kansas Gas Service and Southern Star Central Gas Pipeline.

The Kansas Gas Service arrangement has historically expired on April 30 of each year and is renegotiated for an additional one-year term.

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

For example, Evergy's 2020 annual cash incentive program included a metric that is based on the number of days of work missed due to preventable injury.

Evergy also has a Director of Diversity, Equity and Inclusion that reports directly to Evergy's President and Chief Executive Officer.

| Anthony D. Somma (e) | | | 57 | | | Executive Vice President and Chief Financial Officer | | | 2006 | | |

Mr. Andrews will assume the duties of principal financial officer following the departure of Mr. Somma.

Mr. Somma previously served as Senior Vice President, Chief Financial Officer and Treasurer (2011-2018) for Evergy Kansas Central, after having been appointed as Treasurer in 2006 and Vice President in 2009.

He also served as Executive Director, Generation (2004-2006), Executive Director, Finance (1998-1999) and Director, Corporate Strategy (1996-1998) of Evergy Kansas Central, after having joined the company in 1994.

From 1999 to 2004, Mr. Somma served in various leadership roles with a former affiliate of Evergy Kansas Central, including Senior Vice President, Finance and Administration, Chief Financial Officer and Secretary.

As disclosed by the Evergy Companies in a Current Report on Form 8-K filed with the SEC on January 8, 2021, Mr. Somma will leave the Evergy Companies in connection with the arrival of Mr. Andrews.

Mr. Somma will continue to perform the duties of principal financial officer through the filing of the Evergy Companies' 2020 Annual Report on Form 10-K.

Mr. Banning previously served in the following officer roles for Evergy Kansas Central: Senior Vice President, Operations Support and Administration (2015-2018); Vice President, Human Resources and IT (2014); and Vice President, Human Resources (2010-2013).

Mr. Banning also served as Executive Director of Human Resources for Evergy Kansas Central (2008-2010).

For information regarding material lawsuits and proceedings, see Notes [removed: 5] [added: 4] and [removed: 15] [added: 14] to the consolidated financial statements.

For the fiscal year ended December 31, [removed: 2020][added: 2021]

[removed: ][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: 2020)] [added: 2021)] was approximately [removed: $13,410,149,293.][added: $13,704,717,320.]

On February [removed: 19, 2021,] [added: 18, 2022,] Evergy, Inc. had [removed: 226,944,941] [added: 229,311,689] shares of common stock outstanding.

On February [removed: 19, 2021,] [added: 18, 2022,] Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had one share of common stock outstanding and held by Evergy, Inc.

Portions of the [removed: 2021] [added: 2022] annual meeting proxy statement of Evergy, Inc. to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report.

| | | | [Cautionary Statements Regarding Certain Forward-Looking [removed: Information](#i0079a6cf16064cbcac4dc3b5348b02a0_19)] [added: Information](#i9e3d7fad53bb42b083be8286e4319cd4_16)] | | | [removed: [3](#i0079a6cf16064cbcac4dc3b5348b02a0_19)] [added: [3](#i9e3d7fad53bb42b083be8286e4319cd4_16)] | | |

| | | | [Glossary of [removed: Terms](#i0079a6cf16064cbcac4dc3b5348b02a0_22)] [added: Terms](#i9e3d7fad53bb42b083be8286e4319cd4_19)] | | | [removed: [5](#i0079a6cf16064cbcac4dc3b5348b02a0_22)] [added: [5](#i9e3d7fad53bb42b083be8286e4319cd4_19)] | | |

| Item 1. | | | [removed: [Business](#i0079a6cf16064cbcac4dc3b5348b02a0_28)] [added: [Business](#i9e3d7fad53bb42b083be8286e4319cd4_25)] | | | [removed: [7](#i0079a6cf16064cbcac4dc3b5348b02a0_28)] [added: [7](#i9e3d7fad53bb42b083be8286e4319cd4_25)] | | |

| Item 1A. | | | [Risk [removed: Factors](#i0079a6cf16064cbcac4dc3b5348b02a0_31)] [added: Factors](#i9e3d7fad53bb42b083be8286e4319cd4_28)] | | | [removed: [16](#i0079a6cf16064cbcac4dc3b5348b02a0_31)] [added: [16](#i9e3d7fad53bb42b083be8286e4319cd4_28)] | | |

| Item 1B. | | | [Unresolved Staff [removed: Comments](#i0079a6cf16064cbcac4dc3b5348b02a0_34)] [added: Comments](#i9e3d7fad53bb42b083be8286e4319cd4_31)] | | | [removed: [27](#i0079a6cf16064cbcac4dc3b5348b02a0_34)] [added: [28](#i9e3d7fad53bb42b083be8286e4319cd4_31)] | | |

| Item 2. | | | [removed: [Properties](#i0079a6cf16064cbcac4dc3b5348b02a0_37)] [added: [Properties](#i9e3d7fad53bb42b083be8286e4319cd4_34)] | | | [removed: [28](#i0079a6cf16064cbcac4dc3b5348b02a0_37)] [added: [29](#i9e3d7fad53bb42b083be8286e4319cd4_34)] | | |

| Item 3. | | | [Legal [removed: Proceedings](#i0079a6cf16064cbcac4dc3b5348b02a0_40)] [added: Proceedings](#i9e3d7fad53bb42b083be8286e4319cd4_37)] | | | [removed: [31](#i0079a6cf16064cbcac4dc3b5348b02a0_40)] [added: [32](#i9e3d7fad53bb42b083be8286e4319cd4_37)] | | |

| Item 4. | | | [Mine Safety [removed: Disclosures](#i0079a6cf16064cbcac4dc3b5348b02a0_43)] [added: Disclosures](#i9e3d7fad53bb42b083be8286e4319cd4_40)] | | | [removed: [31](#i0079a6cf16064cbcac4dc3b5348b02a0_43)] [added: [32](#i9e3d7fad53bb42b083be8286e4319cd4_40)] | | |

| Item 5. | | | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i0079a6cf16064cbcac4dc3b5348b02a0_49)] [added: Securities](#i9e3d7fad53bb42b083be8286e4319cd4_46)] | | | [removed: [32](#i0079a6cf16064cbcac4dc3b5348b02a0_49)] [added: [33](#i9e3d7fad53bb42b083be8286e4319cd4_46)] | | |

| Item 6. | | | [Selected Financial [removed: Data](#i0079a6cf16064cbcac4dc3b5348b02a0_52)] [added: Data](#i9e3d7fad53bb42b083be8286e4319cd4_3508)] | | | [removed: [33](#i0079a6cf16064cbcac4dc3b5348b02a0_52)] [added: [3](#i9e3d7fad53bb42b083be8286e4319cd4_3508)[2](#i9e3d7fad53bb42b083be8286e4319cd4_3508)] | | |

| Item 7. | | | [Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i0079a6cf16064cbcac4dc3b5348b02a0_298)] [added: Operations](#i9e3d7fad53bb42b083be8286e4319cd4_235)] | | | [removed: [33](#i0079a6cf16064cbcac4dc3b5348b02a0_298)] [added: [34](#i9e3d7fad53bb42b083be8286e4319cd4_235)] | | |

| Item 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i0079a6cf16064cbcac4dc3b5348b02a0_343)] [added: Risk](#i9e3d7fad53bb42b083be8286e4319cd4_49)] | | | [removed: [58](#i0079a6cf16064cbcac4dc3b5348b02a0_343)] [added: [59](#i9e3d7fad53bb42b083be8286e4319cd4_49)] | | |

| Item 8. | | | [Financial Statements and Supplementary [removed: Data](#i0079a6cf16064cbcac4dc3b5348b02a0_55)] [added: Data](#i9e3d7fad53bb42b083be8286e4319cd4_52)] | | | [removed: [61](#i0079a6cf16064cbcac4dc3b5348b02a0_55)] [added: [62](#i9e3d7fad53bb42b083be8286e4319cd4_52)] | | |

| Item 9. | | | [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure](#i0079a6cf16064cbcac4dc3b5348b02a0_346)] [added: Disclosure](#i9e3d7fad53bb42b083be8286e4319cd4_280)] | | | [removed: [84](#i0079a6cf16064cbcac4dc3b5348b02a0_346)] [added: [153](#i9e3d7fad53bb42b083be8286e4319cd4_280)] | | |

| Item 9A. | | | [Controls and [removed: Procedures](#i0079a6cf16064cbcac4dc3b5348b02a0_349)] [added: Procedures](#i9e3d7fad53bb42b083be8286e4319cd4_283)] | | | [removed: [84](#i0079a6cf16064cbcac4dc3b5348b02a0_349)] [added: [153](#i9e3d7fad53bb42b083be8286e4319cd4_283)] | | |

| Item 9B. | | | [Other [removed: Information](#i0079a6cf16064cbcac4dc3b5348b02a0_370)] [added: Information](#i9e3d7fad53bb42b083be8286e4319cd4_304)] | | | [removed: [88](#i0079a6cf16064cbcac4dc3b5348b02a0_370)] [added: [157](#i9e3d7fad53bb42b083be8286e4319cd4_304)] | | |

| Item 10. | | | [Directors, Executive Officers and Corporate [removed: Governance](#i0079a6cf16064cbcac4dc3b5348b02a0_400)] [added: Governance](#i9e3d7fad53bb42b083be8286e4319cd4_334)] | | | [removed: [88](#i0079a6cf16064cbcac4dc3b5348b02a0_400)] [added: [157](#i9e3d7fad53bb42b083be8286e4319cd4_334)] | | |

| Item 11. | | | [Executive [removed: Compensation](#i0079a6cf16064cbcac4dc3b5348b02a0_403)] [added: Compensation](#i9e3d7fad53bb42b083be8286e4319cd4_337)] | | | [removed: [89](#i0079a6cf16064cbcac4dc3b5348b02a0_403)] [added: [158](#i9e3d7fad53bb42b083be8286e4319cd4_337)] | | |

| Item 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i0079a6cf16064cbcac4dc3b5348b02a0_406)] [added: Matters](#i9e3d7fad53bb42b083be8286e4319cd4_340)] | | | [removed: [89](#i0079a6cf16064cbcac4dc3b5348b02a0_406)] [added: [158](#i9e3d7fad53bb42b083be8286e4319cd4_340)] | | |

| Item 13. | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i0079a6cf16064cbcac4dc3b5348b02a0_409)] [added: Independence](#i9e3d7fad53bb42b083be8286e4319cd4_343)] | | | [removed: [90](#i0079a6cf16064cbcac4dc3b5348b02a0_409)] [added: [159](#i9e3d7fad53bb42b083be8286e4319cd4_343)] | | |

| Item 14. | | | [Principal Accounting Fees and [removed: Services](#i0079a6cf16064cbcac4dc3b5348b02a0_412)] [added: Services](#i9e3d7fad53bb42b083be8286e4319cd4_346)] | | | [removed: [90](#i0079a6cf16064cbcac4dc3b5348b02a0_412)] [added: [159](#i9e3d7fad53bb42b083be8286e4319cd4_346)] | | |

| Item 15. | | | [Exhibits and Financial Statement [removed: Schedules](#i0079a6cf16064cbcac4dc3b5348b02a0_418)] [added: Schedules](#i9e3d7fad53bb42b083be8286e4319cd4_352)] | | | [removed: [92](#i0079a6cf16064cbcac4dc3b5348b02a0_418)] [added: [161](#i9e3d7fad53bb42b083be8286e4319cd4_352)] | | |

Statements made in this [removed: report] [added: document] that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made.

Forward-looking statements include, but are not limited to, statements relating to [removed: our] [added: Evergy's] strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand; future power prices; plans with respect to existing and potential future generation resources; the availability and cost of generation resources and energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations.

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

Additional risks and uncertainties are discussed [added: in Part I, Item 1A - Risk Factors in this annual report on Form 10-K, and] from time to time in [removed: current, quarterly] [added: current reports on Form 8-K] and [removed: annual] [added: quarterly] reports [added: on Form 10-Q] filed by the Evergy [removed: Companies with the Securities and Exchange Commission (SEC).]

The Evergy Companies undertake no obligation to publicly update or revise any [added: forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.]

Additionally, information about the Evergy Companies, including their combined annual reports on Form 10-K, combined quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with the SEC, is also available through the Evergy Companies' website, [removed: www.evergy.com.][added: http://investors.evergy.com.]

In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations [removed: tab on] [added: section of] their website, [removed: www.evergy.com,] [added: http://investors.evergy.com,] to communicate with investors.

The information on [removed: Evergy's] [added: the Evergy Companies'] website is not part of this document.

| [PART I](#i9e3d7fad53bb42b083be8286e4319cd4_22) | | | | | | | | |

| [PART II](#i9e3d7fad53bb42b083be8286e4319cd4_43) | | | | | | | | |

| Item 9C. | | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i9e3d7fad53bb42b083be8286e4319cd4_3745) | | | [157](#i9e3d7fad53bb42b083be8286e4319cd4_3745) | | |

| [PART III](#i9e3d7fad53bb42b083be8286e4319cd4_331) | | | | | | | | |

| [PART IV](#i9e3d7fad53bb42b083be8286e4319cd4_349) | | | | | | | | |

| | | | [Signatures](#i9e3d7fad53bb42b083be8286e4319cd4_382) | | | [184](#i9e3d7fad53bb42b083be8286e4319cd4_382) | | |

You should also carefully consider the information contained in our other filings with the Securities and Exchange Commission (SEC).

Companies with the SEC.

| AOCI | | | | | | Accumulated other comprehensive income | | |

| ASU | | | | | | Accounting Standards Update | | |

| CSAPR | | | | | | Cross-State Air Pollution | | |

| EIRR | | | | | | Environmental Improvement Revenue Refunding | | |

| February 2021 winter weather event | | | | | | Significant winter weather event in February 2021 that resulted in extremely cold temperatures over a multi-day period across much of the central and southern United States | | |

| KDHE | | | | | | Kansas Department of Health & Environment | | |

| KEEIA | | | | | | Kansas Energy Efficiency Investment Act | | |

| LEC | | | | | | Lawrence Energy Center | | |

| SIP | | | | | | State implementation plan | | |

| UFSA | | | | | | Utility Financing and Securitization Act | | |

| [PART I](#i0079a6cf16064cbcac4dc3b5348b02a0_25) | | | | | | | | |

| [PART II](#i0079a6cf16064cbcac4dc3b5348b02a0_46) | | | | | | | | |

| [PART III](#i0079a6cf16064cbcac4dc3b5348b02a0_397) | | | | | | | | |

| [PART IV](#i0079a6cf16064cbcac4dc3b5348b02a0_415) | | | | | | | | |

| | | | [Signatures](#i0079a6cf16064cbcac4dc3b5348b02a0_451) | | | [114](#i0079a6cf16064cbcac4dc3b5348b02a0_451) | | |

Reports filed by the Evergy Companies with the SEC should also be read for more information regarding risk factors.

forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

| DOE | | | | | | Department of Energy | | |

| STP | | | | | | Sustainability Transformation Plan | | |

| Flat Ridge | | | | | | | | | Kansas | | | 2009 | | | Wind | | | 50 | | | — | | | — | | | 50 | | | [removed: 50] [added: 44] | | | (b) | | | [removed: 100] [added: 94] | | |

| Kingman 1 | | | | | | | | | Kansas | | | 2016 | | | Wind | | | — | | | — | | | — | | | — | | | [removed: 103] [added: 37] | | | (b) | | | [removed: 103] [added: 37] | | |

| Ponderosa | | | | | | | | | Oklahoma | | | 2020 | | | Wind | | | — | | | — | | | — | | | — | | | [removed: 198] [added: 178] | | | (c) | | | [removed: 198] [added: 178] | | |

| Cimarron Bend III | | | | | | | | | Kansas | | | 2020 | | | Wind | | | — | | | — | | | — | | | — | | | [removed: 199] [added: 150] | | | (e) | | | [removed: 199] [added: 150] | | |

| CNPPID (NE) - Hydro | | | | | | | | | Nebraska | | | 1941 | | | Hydro | | | — | | | — | | | — | | | — | | | [removed: 60] [added: 66] | | | (d) | | | [removed: 60] [added: 66] | | |

| Total Renewable Generation: | | | | | | | | | | | | | | | | | | 430 | | | 149 | | | 5 | | | 584 | | | [removed: 3,827] [added: 3,820] | | | | | | [removed: 4,411] [added: 4,404] | | |

| Steam Turbines | | | 1-3 | | | (h) | | | | | | 1978, 1980 &1983 | | | Coal | | | [removed: 2,011] [added: 2,016] | | | — | | | 175 | | | [removed: 2,186] [added: 2,191] | | | — | | | | | | [removed: 2,186] [added: 2,191] | | |

| Steam Turbines | | | 4 & 5 | | | [added: (i)] | | | | | | 1960, 1971 | | | Coal | | | 485 | | | — | | | — | | | 485 | | | — | | | | | | 485 | | |

| Steam Turbines | | | 1 & 2 | | | [removed: (h)(i)] [added: (h)(j)] | | | | | | 1973, 1977 | | | Coal | | | 713 | | | 713 | | | — | | | 1,426 | | | — | | | | | | 1,426 | | |

| Steam Turbines | | | 5 | | | [removed: (j)] [added: (k)] | | | | | | 1969 | | | Coal | | | — | | | [removed: 564] [added: 553] | | | — | | | [removed: 564] [added: 553] | | | — | | | | | | [removed: 564] [added: 553] | | |

| Combustion Turbines | | | 1 - 3 | | | | | | | | | 2000 - 2001 | | | Natural Gas | | | [removed: 292] [added: 294] | | | — | | | — | | | [removed: 292] [added: 294] | | | — | | | | | | [removed: 292] [added: 294] | | |

| Combustion Turbines | | | 1 - 3 | | | | | | | | | 1974 | | | Natural Gas | | | [removed: 158] [added: 166] | | | — | | | — | | | [removed: 158] [added: 166] | | | — | | | | | | [removed: 158] [added: 166] | | |

| | | | 4 | | | | | | | | | 1975 | | | Oil | | | [removed: 58] [added: 74] | | | — | | | — | | | [removed: 58] [added: 74] | | | — | | | | | | [removed: 58] [added: 74] | | |

| Combustion Turbines | | | 1 - 4 | | | | | | | | | 2001 | | | Natural Gas | | | [removed: 270] [added: 269] | | | — | | | — | | | [removed: 270] [added: 269] | | | — | | | | | | [removed: 270] [added: 269] | | |

| Combined Cycle | | | 6/9 | | | | | | | | | 2000 | | | Natural Gas | | | — | | | [removed: 225] [added: 221] | | | — | | | [removed: 225] [added: 221] | | | — | | | | | | [removed: 225] [added: 221] | | |

| Combustion Turbines | | | 7 & 8 | | | | | | | | | 2000 | | | Natural Gas | | | — | | | [removed: 153] [added: 154] | | | — | | | [removed: 153] [added: 154] | | | — | | | | | | [removed: 153] [added: 154] | | |

| Combustion Turbines | | | 1 - 4 | | | | | | | | | 2003 | | | Natural Gas | | | — | | | [removed: 313] [added: 309] | | | — | | | [removed: 313] [added: 309] | | | — | | | | | | [removed: 313] [added: 309] | | |

| Combustion Turbines | | | 1 | | | | | | | | | 1974 | | | Oil | | | — | | | — | | | [removed: 18] [added: 16] | | | [removed: 18] [added: 16] | | | — | | | | | | [removed: 18] [added: 16] | | |

| Combustion Turbines | | | 1 - 3 | | | | | | | | | 1951, 1958 & 1962 | | | Natural Gas | | | — | | | — | | | [removed: 42] [added: 49] | | | [removed: 42] [added: 49] | | | — | | | | | | [removed: 42] [added: 49] | | |

| Steam Turbines | | | 4 | | | | | | | | | 1967 | | | Natural Gas | | | — | | | — | | | [removed: 97] [added: 95] | | | [removed: 97] [added: 95] | | | — | | | | | | [removed: 97] [added: 95] | | |

| Combustion Turbines | | | 1 - 3 | | | | | | | | | 2005 | | | Natural Gas | | | — | | | — | | | [removed: 313] [added: 311] | | | [removed: 313] [added: 311] | | | — | | | | | | [removed: 313] [added: 311] | | |

| Combustion Turbines | | | 1 - 4 | | | | | | | | | 1975 - 1979 | | | Natural Gas | | | — | | | — | | | [removed: 234] [added: 251] | | | [removed: 234] [added: 251] | | | — | | | | | | [removed: 234] [added: 251] | | |

(a) Capability (except for wind generating facilities) represents estimated [removed: 2021] [added: 2022] net generating capacity.

Due to the intermittent nature of wind generation, these facilities are associated with a total of [removed: 1,802] [added: 1,788] MW of accredited generating capacity pursuant to SPP reliability standards.

[removed: (i)] [added: (j)] In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2.

See Note [removed: 19] [added: 18] to the consolidated financial statements for more information.

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

Evergy has approximately [removed: 10,100] [added: 10,200] circuit miles of transmission lines, [removed: 39,800] [added: 44,900] circuit miles of overhead distribution lines and [removed: 13,000] [added: 15,500] circuit miles of underground distribution lines in Missouri and Kansas.

Evergy's [added: headquarters,] service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy.

See Note [removed: 13] [added: 12] to the consolidated financial statements for more information.

| Flat Ridge 3 | | | | | | | | | Kansas | | | 2021 | | | Wind | | | — | | | — | | | — | | | — | | | 128 | | | (b) | | | 128 | | |

| Total Coal: | | | | | | | | | | | | | | | | | | 3,214 | | | 2,240 | | | 459 | | | 5,913 | | | — | | | | | | 5,913 | | |

| Total Gas and Oil | | | | | | | | | | | | | | | | | | 1,657 | | | 1,139 | | | 1,175 | | | 3,971 | | | — | | | | | | 3,971 | | |

| Total | | | | | | | | | | | | | | | | | | 5,855 | | | 4,082 | | | 1,639 | | | 11,576 | | | 3,820 | | | | | | 15,396 | | |

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

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

| 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 | | |

Evergy's headquarters are located in leased office space.

Evergy's common stock is listed on the New York Stock Exchange under the symbol "EVRG." At February [removed: 19, 2021,] [added: 18, 2022,] Evergy's common stock was held by [removed: 21,707] [added: 18,297] 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: 2020,] [added: 2021,] to the performance of the Standard & Poor's 500 Index (S&P 500) and the Standard & Poor's Electric Utility Index (S&P 500 Electric Utilities).

[removed: ][added: ]

[removed: Evergy had no] [added: The following table provides information regarding] purchases [added: by Evergy] of its equity securities [added: that are registered pursuant to Section 12 of the Exchange Act] during the three months ended December 31, [removed: 2020.][added: 2021.]

For information regarding dividend restrictions, see Note [removed: 18] [added: 17] to the consolidated financial statements.

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

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

| Issuer Purchases of Equity Securities | | | | | | | | | | | | | | |

| Month | | | Total Number of Shares (or Units) Purchased(a) | | | Average Price Paid per Share (or Unit) | | | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | | | Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | | |

| October 1 - 31 | | | — | | | — | | | — | | | — | | |

| November 1 - 30 | | | 680 | | | $64.92 | | | — | | | — | | |

| December 1 - 31 | | | 8,495 | | | $68.56 | | | — | | | — | | |

| Total | | | 9,175 | | | $68.29 | | | — | | | — | | |

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

Not applicable.

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

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

| Year Ended December 31 | | | | | | 2020 | | | | | | 2019 | | | | | | 2018(b) | | | | | | 2017(b) | | | | | | 2016(b) | | |

| Evergy | | | | | | (dollars in millions except per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Operating revenues | | | | | | $ | 4,913 | | | | | $ | 5,148 | | | | | $ | 4,276 | | | | | $ | 2,571 | | | | | $ | 2,562 | |

| Net income | | | | | | $ | 630 | | | | | $ | 686 | | | | | $ | 546 | | | | | $ | 337 | | | | | $ | 361 | |

| Net income attributable to Evergy, Inc. | | | | | | $ | 618 | | | | | $ | 670 | | | | | $ | 536 | | | | | $ | 324 | | | | | $ | 347 | |

| Basic earnings per common share | | | | | | $ | 2.72 | | | | | $ | 2.80 | | | | | $ | 2.50 | | | | | $ | 2.27 | | | | | $ | 2.43 | |

| Diluted earnings per common share | | | | | | $ | 2.72 | | | | | $ | 2.79 | | | | | $ | 2.50 | | | | | $ | 2.27 | | | | | $ | 2.43 | |

| Total assets at year end | | | | | | $ | 27,115 | | | | | $ | 25,976 | | | | | $ | 25,598 | | | | | $ | 11,624 | | | | | $ | 11,487 | |

| Total long-term obligations at year end (a) | | | | | | $ | 9,785 | | | | | $ | 9,200 | | | | | $ | 7,472 | | | | | $ | 3,846 | | | | | $ | 3,699 | |

| Cash dividends per common share | | | | | | $ | 2.05 | | | | | $ | 1.93 | | | | | $ | 1.735 | | | | | $ | 1.60 | | | | | $ | 1.52 | |

(a) Includes long-term debt, current maturities of long-term debt, finance leases, operating leases, long-term debt of VIEs and current maturities of long-term debt of VIEs.

Obligations related to operating leases are only included beginning in 2019 due to Evergy's adoption of Topic 842, *Leases*.

See Note 1 to the consolidated financial statements for additional information.

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

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

Evergy amounts for 2017 and 2016 reflect the results of operation and financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction.

| [Evergy, [removed: Inc.](#i0079a6cf16064cbcac4dc3b5348b02a0_61)] [added: Inc.](#i9e3d7fad53bb42b083be8286e4319cd4_58)] | | | | | | [removed: [62](#i0079a6cf16064cbcac4dc3b5348b02a0_61)] [added: [63](#i9e3d7fad53bb42b083be8286e4319cd4_58)] | | |

| [Evergy Kansas Central, [removed: Inc.](#i0079a6cf16064cbcac4dc3b5348b02a0_64)] [added: Inc.](#i9e3d7fad53bb42b083be8286e4319cd4_61)] | | | | | | [removed: [65](#i0079a6cf16064cbcac4dc3b5348b02a0_64)] [added: [66](#i9e3d7fad53bb42b083be8286e4319cd4_61)] | | |

| [Evergy Metro, [removed: Inc.](#i0079a6cf16064cbcac4dc3b5348b02a0_67)] [added: Inc.](#i9e3d7fad53bb42b083be8286e4319cd4_64)] | | | | | | [removed: [68](#i0079a6cf16064cbcac4dc3b5348b02a0_67)] [added: [69](#i9e3d7fad53bb42b083be8286e4319cd4_64)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#i0079a6cf16064cbcac4dc3b5348b02a0_79)] [added: Income](#i9e3d7fad53bb42b083be8286e4319cd4_70)] | | | | | | [removed: [71](#i0079a6cf16064cbcac4dc3b5348b02a0_79)] [added: [72](#i9e3d7fad53bb42b083be8286e4319cd4_70)] | | |

| [Consolidated Balance [removed: Sheets](#i0079a6cf16064cbcac4dc3b5348b02a0_73)] [added: Sheets](#i9e3d7fad53bb42b083be8286e4319cd4_67)] | | | | | | [removed: [2](#i0079a6cf16064cbcac4dc3b5348b02a0_73)] [added: [73](#i9e3d7fad53bb42b083be8286e4319cd4_67)] | | |

| [Consolidated Statements of Cash [removed: Flows](#i0079a6cf16064cbcac4dc3b5348b02a0_82)] [added: Flows](#i9e3d7fad53bb42b083be8286e4319cd4_76)] | | | | | | [removed: [4](#i0079a6cf16064cbcac4dc3b5348b02a0_82)] [added: [75](#i9e3d7fad53bb42b083be8286e4319cd4_76)] | | |

| [Consolidated Statements of Changes in [removed: Equity](#i0079a6cf16064cbcac4dc3b5348b02a0_88)] [added: Equity](#i9e3d7fad53bb42b083be8286e4319cd4_79)] | | | | | | [removed: [5](#i0079a6cf16064cbcac4dc3b5348b02a0_88)] [added: [76](#i9e3d7fad53bb42b083be8286e4319cd4_79)] | | |

| [Consolidated Statements of [removed: Income](#i0079a6cf16064cbcac4dc3b5348b02a0_112)] [added: Income](#i9e3d7fad53bb42b083be8286e4319cd4_88)] | | | | | | [removed: [6](#i0079a6cf16064cbcac4dc3b5348b02a0_112)] [added: [77](#i9e3d7fad53bb42b083be8286e4319cd4_88)] | | |

| [Consolidated Balance [removed: Sheets](#i0079a6cf16064cbcac4dc3b5348b02a0_106)] [added: Sheets](#i9e3d7fad53bb42b083be8286e4319cd4_85)] | | | | | | [removed: [7](#i0079a6cf16064cbcac4dc3b5348b02a0_106)] [added: [78](#i9e3d7fad53bb42b083be8286e4319cd4_85)] | | |

| [Consolidated Statements of Cash [removed: Flows](#i0079a6cf16064cbcac4dc3b5348b02a0_115)] [added: Flows](#i9e3d7fad53bb42b083be8286e4319cd4_94)] | | | | | | [removed: [9](#i0079a6cf16064cbcac4dc3b5348b02a0_115)] [added: [80](#i9e3d7fad53bb42b083be8286e4319cd4_94)] | | |

| [Consolidated Statements of Changes in [removed: Equity](#i0079a6cf16064cbcac4dc3b5348b02a0_121)] [added: Equity](#i9e3d7fad53bb42b083be8286e4319cd4_97)] | | | | | | [removed: [10](#i0079a6cf16064cbcac4dc3b5348b02a0_121)] [added: [81](#i9e3d7fad53bb42b083be8286e4319cd4_97)] | | |

| [Consolidated Statements of Comprehensive [removed: Income](#i0079a6cf16064cbcac4dc3b5348b02a0_133)] [added: Income](#i9e3d7fad53bb42b083be8286e4319cd4_106)] | | | | | | [removed: [11](#i0079a6cf16064cbcac4dc3b5348b02a0_133)] [added: [82](#i9e3d7fad53bb42b083be8286e4319cd4_106)] | | |

| [Consolidated Balance [removed: Sheets](#i0079a6cf16064cbcac4dc3b5348b02a0_127)] [added: Sheets](#i9e3d7fad53bb42b083be8286e4319cd4_103)] | | | | | | [removed: [12](#i0079a6cf16064cbcac4dc3b5348b02a0_127)] [added: [83](#i9e3d7fad53bb42b083be8286e4319cd4_103)] | | |

| [Consolidated Statements of Cash [removed: Flows](#i0079a6cf16064cbcac4dc3b5348b02a0_136)] [added: Flows](#i9e3d7fad53bb42b083be8286e4319cd4_112)] | | | | | | [removed: [14](#i0079a6cf16064cbcac4dc3b5348b02a0_136)] [added: [85](#i9e3d7fad53bb42b083be8286e4319cd4_112)] | | |

| [Consolidated Statements of Changes in [removed: Equity](#i0079a6cf16064cbcac4dc3b5348b02a0_142)] [added: Equity](#i9e3d7fad53bb42b083be8286e4319cd4_118)] | | | | | | [removed: [15](#i0079a6cf16064cbcac4dc3b5348b02a0_4323)] [added: [86](#i9e3d7fad53bb42b083be8286e4319cd4_115)] | | |

| [Combined Notes to Consolidated Financial [removed: Statements](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: Statements](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | | | | | | | |

| Note 1: | | | [Summary of Significant Accounting [removed: Policies](#i0079a6cf16064cbcac4dc3b5348b02a0_208)] [added: Policies](#i9e3d7fad53bb42b083be8286e4319cd4_226)] | | | [removed: [16](#i0079a6cf16064cbcac4dc3b5348b02a0_208)] [added: [87](#i9e3d7fad53bb42b083be8286e4319cd4_226)] | | |

[removed: | Note 2: | | | [Merger of Great] Plains Energy and Evergy Kansas [removed: Central](#i0079a6cf16064cbcac4dc3b5348b02a0_214) | | | [24](#i0079a6cf16064cbcac4dc3b5348b02a0_214) | | |][added: Central merger.]

| Note [removed: 5:] [added: 4:] | | | [Rate Matters and [removed: Regulation](#i0079a6cf16064cbcac4dc3b5348b02a0_160)] [added: Regulation](#i9e3d7fad53bb42b083be8286e4319cd4_136)] | | | [removed: [31](#i0079a6cf16064cbcac4dc3b5348b02a0_160)] [added: [100](#i9e3d7fad53bb42b083be8286e4319cd4_136)] | | |

| Note [removed: 7:] [added: 6:] | | | [Asset Retirement [removed: Obligations](#i0079a6cf16064cbcac4dc3b5348b02a0_166)] [added: Obligations](#i9e3d7fad53bb42b083be8286e4319cd4_199)] | | | [removed: [38](#i0079a6cf16064cbcac4dc3b5348b02a0_166)] [added: [109](#i9e3d7fad53bb42b083be8286e4319cd4_199)] | | |

| Note [removed: 8:] [added: 7:] | | | [Property, Plant & [removed: Equipment](#i0079a6cf16064cbcac4dc3b5348b02a0_229)] [added: Equipment](#i9e3d7fad53bb42b083be8286e4319cd4_202)] | | | [removed: [39](#i0079a6cf16064cbcac4dc3b5348b02a0_229)] [added: [110](#i9e3d7fad53bb42b083be8286e4319cd4_202)] | | |

| Note [removed: 9:] [added: 8:] | | | [Jointly-Owned Electric Utility [removed: Plants](#i0079a6cf16064cbcac4dc3b5348b02a0_232)] [added: Plants](#i9e3d7fad53bb42b083be8286e4319cd4_205)] | | | [removed: [40](#i0079a6cf16064cbcac4dc3b5348b02a0_232)] [added: [111](#i9e3d7fad53bb42b083be8286e4319cd4_205)] | | |

| Note [removed: 10:] [added: 9:] | | | [Pension Plans and Post-Retirement [removed: Benefits](#i0079a6cf16064cbcac4dc3b5348b02a0_235)] [added: Benefits](#i9e3d7fad53bb42b083be8286e4319cd4_160)] | | | [removed: [41](#i0079a6cf16064cbcac4dc3b5348b02a0_235)] [added: [112](#i9e3d7fad53bb42b083be8286e4319cd4_160)] | | |

| Note [removed: 12:] [added: 11:] | | | [Short-Term Borrowings and Short-Term Bank Lines of [removed: Credit](#i0079a6cf16064cbcac4dc3b5348b02a0_178)] [added: Credit](#i9e3d7fad53bb42b083be8286e4319cd4_163)] | | | [removed: [56](#i0079a6cf16064cbcac4dc3b5348b02a0_178)] [added: [126](#i9e3d7fad53bb42b083be8286e4319cd4_163)] | | |

| Note [removed: 13:] [added: 12:] | | | [Long-Term [removed: Debt](#i0079a6cf16064cbcac4dc3b5348b02a0_259)] [added: Debt](#i9e3d7fad53bb42b083be8286e4319cd4_169)] | | | [removed: [57](#i0079a6cf16064cbcac4dc3b5348b02a0_259)] [added: [128](#i9e3d7fad53bb42b083be8286e4319cd4_169)] | | |

| Note [removed: 14:] [added: 13:] | | | [Fair Value [removed: Measurements](#i0079a6cf16064cbcac4dc3b5348b02a0_187)] [added: Measurements](#i9e3d7fad53bb42b083be8286e4319cd4_175)] | | | [removed: [60](#i0079a6cf16064cbcac4dc3b5348b02a0_187)] [added: [131](#i9e3d7fad53bb42b083be8286e4319cd4_175)] | | |

| [removed: Note 15:] [added: Commitments and Contingencies (Note 14)] | | | [removed: [Commitments and Contingencies](#i0079a6cf16064cbcac4dc3b5348b02a0_193)] | | | [removed: [65](#i0079a6cf16064cbcac4dc3b5348b02a0_193)] | | | [added: | | | | | | | | | | | | | | |]

| Note [removed: 17:] [added: 16:] | | | [Related Party Transactions and [removed: Relationships](#i0079a6cf16064cbcac4dc3b5348b02a0_196)] [added: Relationships](#i9e3d7fad53bb42b083be8286e4319cd4_184)] | | | [removed: [69](#i0079a6cf16064cbcac4dc3b5348b02a0_196)] [added: [141](#i9e3d7fad53bb42b083be8286e4319cd4_184)] | | |

| Note [removed: 19:] [added: 18:] | | | [Variable Interest [removed: Entities](#i0079a6cf16064cbcac4dc3b5348b02a0_280)] [added: Entities](#i9e3d7fad53bb42b083be8286e4319cd4_217)] | | | [removed: [72](#i0079a6cf16064cbcac4dc3b5348b02a0_280)] [added: [143](#i9e3d7fad53bb42b083be8286e4319cd4_217)] | | |

We have audited the accompanying consolidated balance sheets of Evergy, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 26, 2021,] [added: 24, 2022,] expressed an unqualified opinion on the Company's internal control over financial reporting.

Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and [removed: 5] [added: 4] to the financial statements

The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which [removed: have] [added: has] jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively.

Such external information included relevant regulatory orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by [removed: interveners,] [added: intervenors,] and other publicly available

[removed: February 26,] [added: February] 2021 [added: Winter Weather Event]

We have audited the accompanying consolidated balance sheets of Evergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] in conformity with accounting principles generally accepted in the United States of America.

Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and [removed: 5] [added: 4] to the financial statements

Such external information included relevant regulatory orders issued by the Commission for the Company and other public utilities in Kansas, regulatory statutes, interpretations, procedural memorandums, filings made by [removed: interveners,] [added: intervenors,] and other publicly available information to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commission's treatment of similar costs under similar circumstances.

| Note 2: | | | [Revenue](#i9e3d7fad53bb42b083be8286e4319cd4_130) | | | [9](#i9e3d7fad53bb42b083be8286e4319cd4_127)[3](#i9e3d7fad53bb42b083be8286e4319cd4_127) | | |

| Note 3: | | | [Receivables](#i9e3d7fad53bb42b083be8286e4319cd4_133) | | | [99](#i9e3d7fad53bb42b083be8286e4319cd4_133) | | |

| Note 5: | | | [Goodwill](#i9e3d7fad53bb42b083be8286e4319cd4_142) | | | [109](#i9e3d7fad53bb42b083be8286e4319cd4_142) | | |

| Note 10: | | | [Equity Compensation](#i9e3d7fad53bb42b083be8286e4319cd4_208) | | | [125](#i9e3d7fad53bb42b083be8286e4319cd4_208) | | |

| Note 15: | | | [Guarantees](#i9e3d7fad53bb42b083be8286e4319cd4_214) | | | [140](#i9e3d7fad53bb42b083be8286e4319cd4_214) | | |

| Note 17: | | | [Shareholders' Equity](#i9e3d7fad53bb42b083be8286e4319cd4_190) | | | [142](#i9e3d7fad53bb42b083be8286e4319cd4_190) | | |

| Note 19: | | | [Taxes](#i9e3d7fad53bb42b083be8286e4319cd4_196) | | | [144](#i9e3d7fad53bb42b083be8286e4319cd4_196) | | |

| Note 20: | | | [Leases](#i9e3d7fad53bb42b083be8286e4319cd4_220) | | | [150](#i9e3d7fad53bb42b083be8286e4319cd4_220) | | |

February 24, 2022

February 24, 2022

February 24, 2022

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| Prepaid expenses | | | | | | 49.3 | | | | | | | | | | | | 48.2 | | | | | |

| Other assets | | | | | | 75.4 | | | | | | | | | | | | 23.7 | | | | | |

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| Issuance of common stock | | | 112.5 | | | | | | — | | | | | | — | | | | | |

| Net income | | | — | | | — | | | 879.7 | | | — | | | 12.2 | | | 891.9 | | |

| Issuance of stock, net of issuance costs | | | 2,269,447 | | | 112.5 | | | — | | | — | | | — | | | 112.5 | | |

| Issuance of restricted common stock | | | 54,054 | | | 2.9 | | | — | | | — | | | — | | | 2.9 | | |

| Unearned compensation | | | | | | | | | | | | | | | | | | | | |

| Compensation expense recognized | | | — | | | 1.8 | | | — | | | — | | | — | | | 1.8 | | |

| Balance as of December 31, 2021 | | | 229,299,900 | | | $ | 7,205.5 | | $ | 2,082.9 | | $ | (44.0) | | $ | (2.7) | | $ | 9,241.7 | |

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| Net income | | | — | | | — | | | 488.5 | | | 12.2 | | | 500.7 | | |

| Balance as of December 31, 2021 | | | 1 | | | $ | 2,737.6 | | $ | 1,806.6 | | $ | (2.7) | | $ | 4,541.5 | |

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| | | | 2021 | | | | | | | | | | | | 2020 | | | | | | | | |

| Net income | | | — | | | — | | | 312.3 | | | — | | | 312.3 | | |

| Balance as of December 31, 2021 | | | 1 | | | $ | 1,563.1 | | $ | 1,453.8 | | $ | 4.3 | | $ | 3,021.2 | |

| | | | 2021 | | | | | | 2020 | | |

be retired, net on the consolidated balance sheets.

See Note 4 for additional information regarding the AAO and Evergy Missouri West's current rate case.

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

| | | | | | | 2021 | | | | | | 2020 | | |

In 2021, Evergy's investment earnings included a $27.7 million unrealized gain related to Evergy’s investment in an early-stage energy solutions company.

The Evergy Companies’ other income includes income from AFUDC equity funds.

See “Property, Plant and Equipment” in this Note 1 for these amounts for 2021, 2020 and 2019.

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

In February 2021, much of the central and southern United States, including the service territories of the Evergy Companies, experienced a significant winter weather event that resulted in extremely cold temperatures over a multi-day period (February 2021 winter weather event).

| | | | | | | | | |

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

| | | | | | | | | |

| Note 3: | | | [Revenue](#i0079a6cf16064cbcac4dc3b5348b02a0_220) | | | [28](#i0079a6cf16064cbcac4dc3b5348b02a0_220) | | |

| Note 4: | | | [Receivables](#i0079a6cf16064cbcac4dc3b5348b02a0_157) | | | [30](#i0079a6cf16064cbcac4dc3b5348b02a0_157) | | |

| Note 6: | | | [Goodwill](#i0079a6cf16064cbcac4dc3b5348b02a0_163) | | | [37](#i0079a6cf16064cbcac4dc3b5348b02a0_163) | | |

| Note 11: | | | [Equity Compensation](#i0079a6cf16064cbcac4dc3b5348b02a0_241) | | | [53](#i0079a6cf16064cbcac4dc3b5348b02a0_241) | | |

| Note 16: | | | [Guarantees](#i0079a6cf16064cbcac4dc3b5348b02a0_271) | | | [68](#i0079a6cf16064cbcac4dc3b5348b02a0_271) | | |

| Note 18: | | | [Shareholders' Equity](#i0079a6cf16064cbcac4dc3b5348b02a0_247) | | | [70](#i0079a6cf16064cbcac4dc3b5348b02a0_247) | | |

| Note 20: | | | [Taxes](#i0079a6cf16064cbcac4dc3b5348b02a0_286) | | | [73](#i0079a6cf16064cbcac4dc3b5348b02a0_286) | | |

| Note 21: | | | [Leases](#i0079a6cf16064cbcac4dc3b5348b02a0_205) | | | [79](#i0079a6cf16064cbcac4dc3b5348b02a0_205) | | |

| Note 22: | | | [Quarterly Operating Results (Unaudited)](#i0079a6cf16064cbcac4dc3b5348b02a0_4444) | | | [83](#i0079a6cf16064cbcac4dc3b5348b02a0_4444) | | |

February 26, 2021

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

February 26, 2021

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

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

| Cash acquired from the merger with Great Plains Energy | | | — | | | | | | — | | | | | | 1,154.2 | | | | | |

| Proceeds from settlement of interest rate swap | | | — | | | | | | — | | | | | | 140.6 | | | | | |

| Balance as of December 31, 2017 | | | 142,094,275 | | | $ | 2,734.8 | | $ | 1,173.3 | | $ | — | | $ | (47.7) | | $ | 3,860.4 | |

| Net income | | | — | | | — | | | 535.8 | | | — | | | 10.2 | | | 546.0 | | |

| Issuance of stock to Great Plains Energy shareholders | | | 128,947,518 | | | 6,979.9 | | | — | | | — | | | — | | | 6,979.9 | | |

| Repurchase of common stock under repurchase plan | | | (16,371,319) | | | (1,042.3) | | | — | | | — | | | — | | | (1,042.3) | | |

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

| Non-cash compensation | | | — | | | | | | — | | | | | | 19.9 | | |

| Retirements of long-term debt of variable interest entities | | | (32.3) | | | | | | (30.3) | | | | | | (28.5) | | |

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

| Balance as of December 31, 2017 | | | 142,094,275 | | | $ | 2,734.8 | | $ | 1,173.3 | | $ | (47.7) | | $ | 3,860.4 | |

| Net income | | | — | | | — | | | 338.9 | | | 10.2 | | | 349.1 | | |

| Issuance of stock compensation and reinvested dividends, net of tax withholding | | | 516,990 | | | (17.2) | | | — | | | — | | | (17.2) | | |

| Stock cancelled pursuant to Amended Merger Agreement | | | (142,611,264) | | | — | | | — | | | — | | | — | | |

| Notes payable and commercial paper | | | | | | $ | — | | | | | | | | | | | $ | 199.3 | | | | |

| Long-term debt, net | | | | | | 2,923.0 | | | | | | | | | | | | 2,525.0 | | | | | |

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

| Prepaid expenses and other current assets | | | (7.9) | | | | | | 28.0 | | | | | | 7.2 | | |

| Balance as of December 31, 2017 | | | 1 | | | $ | 1,563.1 | | $ | 949.7 | | $ | 0.4 | | $ | 2,513.2 | |

| Net income | | | — | | | — | | | 162.9 | | | — | | | 162.9 | | |

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 described below, 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, 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

There has been no change in Evergy’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, [removed: 2020,] [added: 2021,] that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Under the supervision and with the participation of [removed: Evergy’s] [added: Evergy Metro’s] chief executive officer and chief financial officer, management evaluated the effectiveness of [removed: Evergy’s] [added: Evergy Metro’s] internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

[added: Management used for this evaluation] the framework in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

Management has concluded that, as of December 31, [removed: 2020,] [added: 2021,] Evergy’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.

We have audited the internal control over financial reporting of Evergy, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, [removed: 2020,] [added: 2021,] of the Company and our report dated February [removed: 26, 2021,] [added: 24, 2022,] expressed an unqualified opinion on those financial statements and financial statement schedules.

There has been no change in Evergy Kansas Central’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, [removed: 2020,] [added: 2021,] that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.

Under the supervision and with the participation of Evergy Kansas Central’s chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Kansas Central’s internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

Management has concluded that, as of December 31, [removed: 2020,] [added: 2021,] Evergy Kansas Central’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.

There has been no change in Evergy Metro’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, [removed: 2020,] [added: 2021,] that has materially affected, or is reasonably likely to materially affect, its internal control over financial [removed: reporting][added: reporting.]

[removed: Under the supervision and with the] participation of [removed: Evergy Metro’s] [added: Evergy’s] chief executive officer and chief financial officer, management evaluated the effectiveness of [removed: Evergy Metro’s] [added: Evergy’s] internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

Management has concluded that, as of December 31, [removed: 2020,] [added: 2021,] Evergy Metro’s internal control over financial reporting is effective based on the criteria set forth in the COSO framework.

Under the supervision and with the

February 24, 2022

Management used for this evaluation

February 26, 2021

In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, [removed: www.evergy.com,] [added: http://investors.evergy.com,] to communicate with investors.

PART III

Information required by Items 10-14 of Part III of this Form 10-K with respect to Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 2021 Annual Meeting of Shareholders (Proxy Statement) on or before April 30, 2021.

Not applicable.

PART III

Information required by Items 10-14 of Part III of this Form 10-K with respect to Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 2022 Annual Meeting of Shareholders (Proxy Statement) on or before April 29, 2022.

- Information regarding the Audit Committee of Evergy will be contained in the Proxy Statement section titled [removed: "Board] [added: "Corporate Governance Matters - Board] Structure - Audit Committee."

The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections of the Proxy Statement: [added: "Proxy Statement Summary and Highlights - Executive Compensation Highlights," "Director Compensation,"] "Executive Summary of Compensation Matters," [removed: "2020 Director Compensation,"] "Compensation Discussion and Analysis," "Compensation Committee Report," "Executive Compensation Tables," "Director Independence" and "Other Matters - Compensation Committee Interlocks and Insider Participation."

The following table provides information, as of December 31, [removed: 2020,] [added: 2021,] regarding the number of common shares to be issued upon exercise of outstanding options, warrants and rights, their weighted average exercise price, and the number of shares of common stock remaining available for future issuance.

| Equity compensation plans approved by security holders [removed: (1)] [added: (3)] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

[removed: (1)The] [added: (3) The] Evergy Kansas Central, Inc. LTISA will not be used for future awards.

As of December 31, [removed: 2020,] [added: 2021,] there were approximately [removed: 41,287 RSUs with only service requirements outstanding under the plan, and approximately 330,753] [added: 312,568] units outstanding that were deferred pursuant to the Evergy Kansas Central, Inc. non-employee deferred compensation program.

[removed: (2)Includes 108,010 performance shares at target performance levels, 119,455] [added: (1)Includes 253,046] RSUs with [removed: only service] [added: time-based] requirements, [removed: 347,964] [added: 513,715] RSUs with performance measures [added: at target performance levels, 36,036 restricted share awards] and director deferred share units for [removed: 134,543] [added: 128,048] shares of Evergy common stock outstanding at December 31, [removed: 2020.][added: 2021.]

[removed: (3)The performance shares, RSUs] [added: (2)The RSUs, RSAs] and director deferred share units have no exercise price and therefore are not reflected in the weighted-average exercise price.

In connection with the 2022 annual meeting of shareholders, Evergy is seeking shareholder approval to amend and restate the Evergy, Inc. Long-Term Incentive Plan, and increase the number of shares of common stock available for future issuance, among other things.

Additional information required by this item can be found in "Proposal 3: Approval of the Amended and Restated Evergy Long-Term Incentive Plan" and "Appendix C" of the Proxy Statement.

| Evergy Long-Term Incentive Plan | | | | | | 930,845 | | | (1) | | | | | | | | | $ | — | | (2) | | | | | | | | | 1,296,632 | | | | | |

| Total | | | | | | 930,845 | | | (1) | | | | | | | | | $ | — | | (2) | | | | | | | | | 1,296,632 | | | | | |

| Evergy Long-Term Incentive Plan | | | | | | 709,972 | | | (2) | | | | | | | | | $ | — | | (3) | | | | | | | | | 1,696,385 | | | | | |

| Total | | | | | | 709,972 | | | (2) | | | | | | | | | $ | — | | (3) | | | | | | | | | 1,696,385 | | | | | |

The information required by this item regarding the independent auditors of Evergy and its subsidiaries will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Ratification of Appointment of Deloitte & Touche LLP" [added: (PCAOB ID No. 34)] section of the Proxy Statement.

The following tables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] and for other services rendered during [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] on behalf of Evergy Kansas Central and Evergy Metro, as well as all out-of-pocket costs incurred in connection with these services:

| Evergy Kansas Central | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | |

| Audit Fees | | | $ | [removed: 2,025,969] [added: 1,852,798] | | $ | [removed: 2,044,100] [added: 2,025,969] | |

| Audit-Related Fees | | | [removed: —] [added: 50,734] | | | [removed: 24,000] [added: —] | | |

| Tax Fees | | | [removed: 51,385] [added: 86,098] | | | [removed: —] [added: 51,385] | | |

| Total Fees | | | $ | [removed: 2,077,354] [added: 1,989,630] | | $ | [removed: 2,068,100] [added: 2,077,354] | |

| Evergy Metro | | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | |

| Audit Fees | | | $ | [removed: 1,412,546] [added: 1,293,049] | | $ | [removed: 1,503,000] [added: 1,412,546] | |

| Audit-Related Fees | | | [removed: —] [added: 50,734] | | | [removed: 24,000] [added: —] | | |

| Tax Fees | | | [removed: 40,799] [added: 29,219] | | | [removed: —] [added: 40,799] | | |

| Total Fees | | | $ | [removed: 1,453,345] [added: 1,373,002] | | $ | [removed: 1,527,000] [added: 1,453,345] | |

| a. | | | [Consolidated Statements of Comprehensive Income for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_79)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_70)] | | | [removed: [71](#i0079a6cf16064cbcac4dc3b5348b02a0_79)] [added: [72](#i9e3d7fad53bb42b083be8286e4319cd4_70)] | | |

| b. | | | [Consolidated Balance Sheets - December 31, [removed: 2020] [added: 2021] and [removed: 2019](#i0079a6cf16064cbcac4dc3b5348b02a0_73)] [added: 2020](#i9e3d7fad53bb42b083be8286e4319cd4_67)] | | | [removed: [2](#i0079a6cf16064cbcac4dc3b5348b02a0_73)] [added: [73](#i9e3d7fad53bb42b083be8286e4319cd4_67)] | | |

| c. | | | [Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_82)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_76)] | | | [removed: [4](#i0079a6cf16064cbcac4dc3b5348b02a0_82)] [added: [75](#i9e3d7fad53bb42b083be8286e4319cd4_76)] | | |

| d. | | | [Consolidated Statements of Changes in Equity for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_88)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_79)] | | | [removed: [5](#i0079a6cf16064cbcac4dc3b5348b02a0_88)] [added: [76](#i9e3d7fad53bb42b083be8286e4319cd4_79)] | | |

| e. | | | [Notes to Consolidated Financial [removed: Statements](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: Statements](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | | [removed: [16](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: [87](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | |

| f. | | | [Report of Independent Registered Public Accounting [removed: Firm](#i0079a6cf16064cbcac4dc3b5348b02a0_61)] [added: Firm](#i9e3d7fad53bb42b083be8286e4319cd4_58)] | | | [removed: [62](#i0079a6cf16064cbcac4dc3b5348b02a0_61)] [added: [63](#i9e3d7fad53bb42b083be8286e4319cd4_58)] | | |

| g. | | | [Consolidated Statements of Income for [removed: the](#i0079a6cf16064cbcac4dc3b5348b02a0_112) [years](#i0079a6cf16064cbcac4dc3b5348b02a0_112) [ended] [added: the years ended] December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_112)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_88)] | | | [removed: [6](#i0079a6cf16064cbcac4dc3b5348b02a0_112)] [added: [77](#i9e3d7fad53bb42b083be8286e4319cd4_88)] | | |

| h. | | | [Consolidated Balance Sheets - December 31, [removed: 2020] [added: 2021] and [removed: 2019](#i0079a6cf16064cbcac4dc3b5348b02a0_106)] [added: 2020](#i9e3d7fad53bb42b083be8286e4319cd4_85)] | | | [removed: [7](#i0079a6cf16064cbcac4dc3b5348b02a0_106)] [added: [78](#i9e3d7fad53bb42b083be8286e4319cd4_85)] | | |

| i. | | | [Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_115)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_94)] | | | [removed: [9](#i0079a6cf16064cbcac4dc3b5348b02a0_115)] [added: [80](#i9e3d7fad53bb42b083be8286e4319cd4_94)] | | |

| j. | | | [Consolidated Statements of Changes in Equity for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_121)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_97)] | | | [removed: [10](#i0079a6cf16064cbcac4dc3b5348b02a0_121)] [added: [81](#i9e3d7fad53bb42b083be8286e4319cd4_97)] | | |

| k. | | | [Notes to Consolidated Financial [removed: Statements](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: Statements](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | | [removed: [16](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: [87](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | |

| l. | | | [Report of Independent Registered Public Accounting [removed: Firm](#i0079a6cf16064cbcac4dc3b5348b02a0_64)] [added: Firm](#i9e3d7fad53bb42b083be8286e4319cd4_61)] | | | [removed: [65](#i0079a6cf16064cbcac4dc3b5348b02a0_64)] [added: [66](#i9e3d7fad53bb42b083be8286e4319cd4_61)] | | |

| m. | | | [Consolidated Statements of Comprehensive Income for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_133)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_106)] | | | [removed: [11](#i0079a6cf16064cbcac4dc3b5348b02a0_133)] [added: [82](#i9e3d7fad53bb42b083be8286e4319cd4_106)] | | |

| n. | | | [Consolidated Balance Sheets - December 31, [removed: 2020] [added: 2021] and [removed: 2019](#i0079a6cf16064cbcac4dc3b5348b02a0_127)] [added: 2020](#i9e3d7fad53bb42b083be8286e4319cd4_103)] | | | [removed: [12](#i0079a6cf16064cbcac4dc3b5348b02a0_127)] [added: [83](#i9e3d7fad53bb42b083be8286e4319cd4_103)] | | |

| o. | | | [Consolidated Statements of Cash Flows for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_136)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_112)] | | | [removed: [14](#i0079a6cf16064cbcac4dc3b5348b02a0_136)] [added: [85](#i9e3d7fad53bb42b083be8286e4319cd4_112)] | | |

| p. | | | [Consolidated Statements of Changes in Equity for the years ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018](#i0079a6cf16064cbcac4dc3b5348b02a0_4323)] [added: 2019](#i9e3d7fad53bb42b083be8286e4319cd4_115)] | | | [removed: [15](#i0079a6cf16064cbcac4dc3b5348b02a0_4323)] [added: [86](#i9e3d7fad53bb42b083be8286e4319cd4_115)] | | |

| q. | | | [Notes to Consolidated Financial [removed: Statements](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: Statements](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | | [removed: [16](#i0079a6cf16064cbcac4dc3b5348b02a0_145)] [added: [87](#i9e3d7fad53bb42b083be8286e4319cd4_121)] | | |

| r. | | | [Report of Independent Registered Public Accounting [removed: Firm](#i0079a6cf16064cbcac4dc3b5348b02a0_67)] [added: Firm](#i9e3d7fad53bb42b083be8286e4319cd4_64)] | | | [removed: [68](#i0079a6cf16064cbcac4dc3b5348b02a0_67)] [added: [69](#i9e3d7fad53bb42b083be8286e4319cd4_64)] | | |

| a. | | | [Schedule I - Parent Company Financial [removed: Statements](#i0079a6cf16064cbcac4dc3b5348b02a0_421)] [added: Statements](#i9e3d7fad53bb42b083be8286e4319cd4_355)] | | | [removed: [108](#i0079a6cf16064cbcac4dc3b5348b02a0_421)] [added: [178](#i9e3d7fad53bb42b083be8286e4319cd4_355)] | | |

| b. | | | [Schedule II - Valuation and Qualifying Accounts and [removed: Reserves](#i0079a6cf16064cbcac4dc3b5348b02a0_442)] [added: Reserves](#i9e3d7fad53bb42b083be8286e4319cd4_373)] | | | [removed: [112](#i0079a6cf16064cbcac4dc3b5348b02a0_442)] [added: [182](#i9e3d7fad53bb42b083be8286e4319cd4_373)] | | |

| c. | | | [Schedule II - Valuation and Qualifying Accounts and [removed: Reserves](#i0079a6cf16064cbcac4dc3b5348b02a0_445)] [added: Reserves](#i9e3d7fad53bb42b083be8286e4319cd4_376)] | | | [removed: [112](#i0079a6cf16064cbcac4dc3b5348b02a0_445)] [added: [182](#i9e3d7fad53bb42b083be8286e4319cd4_376)] | | |