Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined Quarterly Report on Form 10-Q and the Evergy Companies' combined 2022 Form 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself.

EVERGY, INC.

EXECUTIVE SUMMARY

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

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

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

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

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

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

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment).

Evergy Kansas Central and Evergy Metro 2023 Rate Case Proceeding

In April 2023, Evergy Kansas Central and Evergy Metro filed an application with the KCC to request an increase to their retail revenues. See Note 4 to the consolidated financial statements for additional information.

Renewable Generation Investment

In August 2022, Evergy Missouri West entered into an agreement with a renewable energy development company to purchase for approximately $250 million an operational wind farm located in the state of Oklahoma with a generating capacity of approximately 199 MW. Pursuant to the agreement, Evergy Missouri West is permitted to assign its right to purchase the wind farm to another entity, including to other Evergy affiliated companies.

Evergy Missouri West's purchase is subject to regulatory approvals and closing conditions, including the granting of a CCN by the MPSC. In April 2023, the MPSC issued a final order granting the CCN pursuant to certain conditions related to the sharing of operational costs between ratepayers and shareholders.

Evergy Missouri West is currently evaluating the assignment of its right to purchase the wind farm to Evergy Kansas Central, which has included the purchase of the wind farm in its rate case application to the KCC which was filed in April 2023. See Note 4 to the consolidated financial statements for additional information on Evergy Kansas Central's rate case proceeding. The purchase of the wind farm is expected to close in the second quarter of 2023.

Regulatory Proceedings

See Note 4 to the consolidated financial statements for information regarding regulatory proceedings.

Wolf Creek Refueling Outage

Wolf Creek's most recent refueling outage began in October 2022 and the unit returned to service in November 2022. Wolf Creek's next refueling outage is planned to begin in the first quarter of 2024.

Earnings Overview

The following table summarizes Evergy's net income and diluted EPS.

Three Months Ended March 31																					2023						Change						2022
																		(millions, except per share amounts)
Net income attributable to Evergy, Inc.																					$	142.6					$	20.1					$	122.5
Earnings per common share, diluted																					0.62						0.09						0.53

Net income attributable to Evergy, Inc. increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to lower operating and maintenance expenses, new Evergy Metro and Evergy

Missouri West retail rates effective in January 2023 and a realized loss in 2022 from an equity investment; partially offset by higher depreciation expense, higher interest expense and lower retail sales in the first quarter of 2023 driven by warmer winter weather.

Diluted EPS increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to the increase in net income attributable to Evergy, Inc. discussed above.

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

Non-GAAP Measures

Evergy Utility Gross Margin (non-GAAP)

Utility gross margin (non-GAAP) is a financial measure that is not calculated in accordance with GAAP. Utility gross margin (non-GAAP), as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO. As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. The Evergy Companies' definition of utility gross margin (non-GAAP) may differ from similar terms used by other companies.

Utility gross margin (non-GAAP) is intended to aid an investor's overall understanding of results. Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' operations across periods because utility gross margin (non-GAAP) excludes the revenue effect of fluctuations in fuel and purchased power costs and SPP network transmission costs. Utility gross margin (non-GAAP) is used internally to measure performance against budget and in reports for management and the Evergy Board. Utility gross margin (non-GAAP) should be viewed as a supplement to, and not a substitute for, gross margin, which is the most directly comparable financial measure prepared in accordance with GAAP. Gross margin under GAAP is defined as the excess of sales over cost of goods sold.

Utility gross margin (non-GAAP) differs from the GAAP definition of gross margin due to the exclusion of operating and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization and taxes other than income tax. See the Evergy Companies' Results of Operations for a reconciliation of utility gross margin (non-GAAP) to gross margin, the most comparable GAAP measure.

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

Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assists in the comparability of results and is consistent with how management reviews performance. Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2022 have been recast, as applicable, to conform to the current year presentation.

Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2023 were $136.1 million or $0.59 per share. For the three months ended March 31, 2022, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $129.9 million or $0.56 per share.

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 i.) the costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event; ii.) gains or losses related to equity investments subject to a restriction on sale; iii.) the revenues collected from customers for the return on investment of the retired Sibley Station in 2022 for future refunds to customers; iv.) the mark-to-market impacts of economic hedges related to Evergy Kansas Central's non-regulated 8% ownership share of JEC; and v.) the

transmission revenues collected from customers in 2022 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order.

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

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

			Earnings (Loss)						Earnings (Loss) per Diluted Share						Earnings (Loss)						Earnings (Loss) per Diluted Share
Three Months Ended March 31			2023												2022
			(millions, except per share amounts)
Net income attributable to Evergy, Inc.			$	142.6					$	0.62					$	122.5					$	0.53
Non-GAAP reconciling items:
Sibley Station return on investment, pre-tax(a)			—						—						(3.1)						(0.01)
Mark-to-market impact of JEC economic hedges, pre-tax(b)			(8.4)						(0.04)						—						—
Non-regulated energy marketing costs related to February 2021 winter weather event, pre-tax(c)			0.1						—						0.3						—
Restricted equity investment losses, pre-tax(d)			—						—						14.2						0.06
TFR refund, pre-tax(e)			—						—						(1.9)						(0.01)
Income tax (benefit) expense (f)			1.8						0.01						(2.1)						(0.01)
Adjusted earnings (non-GAAP)			$	136.1					$	0.59					$	129.9					$	0.56

(a)Reflects revenues collected from customers for the return on investment of the retired Sibley Station in 2022 that are included in operating revenues on the consolidated statements of comprehensive income.

(b)Reflects mark-to-market gains or losses related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC that are included in operating revenues on the consolidated statements of comprehensive income.

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

(d)Reflects losses related to equity investments which were subject to a restriction on sale that are included in investment earnings on the consolidated statements of comprehensive income.

(e)Reflects transmission revenues collected from customers in 2022 through Evergy Kansas Central's FERC TFR to be refunded to customers in accordance with a December 2022 FERC order that are included in operating revenues on the consolidated statements of comprehensive income.

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

ENVIRONMENTAL MATTERS

See Note 10 to the consolidated financial statements for information regarding environmental matters.

RELATED PARTY TRANSACTIONS

See Note 11 to the consolidated financial statements for information regarding related party transactions.

EVERGY RESULTS OF OPERATIONS

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

Three Months Ended March 31																					2023						Change						2022
																					(millions)
Operating revenues																					$	1,296.8					$	72.9					$	1,223.9
Fuel and purchased power																					354.2						45.2						309.0
SPP network transmission costs																					81.2						2.5						78.7
Operating and maintenance																					216.3						(35.9)						252.2
Depreciation and amortization																					263.4						34.4						229.0
Taxes other than income tax																					102.4						0.5						101.9
Income from operations																					279.3						26.2						253.1
Other expense, net																					—						26.3						(26.3)
Interest expense																					123.1						31.3						91.8
Income tax expense																					12.4						0.9						11.5
Equity in earnings of equity method investees, net of income taxes																					1.9						(0.2)						2.1
Net income																					145.7						20.1						125.6
Less: Net income attributable to noncontrolling interests																					3.1						—						3.1
Net income attributable to Evergy, Inc.																					$	142.6					$	20.1					$	122.5

Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)

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

			Revenues and Expenses																		MWhs Sold
Three Months Ended March 31			2023						Change						2022						2023						Change						2022
Retail revenues			(millions)																		(thousands)
Residential			$	458.6					$	6.8					$	451.8					3,741						(194)						3,935
Commercial			430.0						26.9						403.1						4,311						55						4,256
Industrial			159.1						8.8						150.3						2,064						(49)						2,113
Other retail revenues			11.3						2.3						9.0						31						(1)						32
Total electric retail			1,059.0						44.8						1,014.2						10,147						(189)						10,336
Wholesale revenues			70.4						18.5						51.9						3,548						(352)						3,900
Transmission revenues			105.8						7.8						98.0						N/A						N/A						N/A
Other revenues			61.6						1.8						59.8						N/A						N/A						N/A
Operating revenues			1,296.8						72.9						1,223.9						13,695						(541)						14,236
Fuel and purchased power			(354.2)						(45.2)						(309.0)
SPP network transmission costs			(81.2)						(2.5)						(78.7)
Operating and maintenance(a)			(118.2)						13.2						(131.4)
Depreciation and amortization			(263.4)						(34.4)						(229.0)
Taxes other than income tax			(102.4)						(0.5)						(101.9)
Gross margin (GAAP)			377.4						3.5						373.9
Operating and maintenance(a)			118.2						(13.2)						131.4
Depreciation and amortization			263.4						34.4						229.0
Taxes other than income tax			102.4						0.5						101.9
Utility gross margin (non-GAAP)			$	861.4					$	25.2					$	836.2
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $98.1 million and $120.8 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy's gross margin (GAAP) increased $3.5 million for the three months ended March 31, 2023, compared to the same period in 2022 and Evergy's utility gross margin (non-GAAP) increased $25.2 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

• a $11.8 million increase from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023;

• an $8.4 million increase due to mark-to-market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC;

• a $7.8 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023; and

• a $6.4 million increase in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

• a $9.2 million decrease primarily due to lower retail sales driven by warmer winter weather in 2023 (heating degree days decreased by 11%) partially offset by higher weather-normalized residential and commercial demand.

Additionally, the increase in Evergy's gross margin (GAAP) was also driven by:

• a $13.2 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $5.2 million decrease in plant operating and maintenance expense at fossil-fuel generating units, a $5.0 million decrease in plant operating and maintenance expense at Wolf Creek and a $2.5 million decrease in transmission and distribution operating and maintenance expenses as further described below; partially offset by

• a $34.4 million increase in depreciation and amortization as further described below.

Operating and Maintenance

Evergy's operating and maintenance expense decreased $35.9 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $13.3 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount compared to the first quarter of 2022;

• a $5.9 million decrease in various administrative and general operating and maintenance expenses primarily due to lower regulatory amortizations at Evergy Metro and Evergy Missouri West as a result of their 2022 rate cases;

• a $5.2 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to a $3.6 million decrease at Evergy Kansas Central driven by a major maintenance outage at JEC in 2022;

• a $5.0 million decrease in plant operating and maintenance expense at Wolf Creek at Evergy Kansas Central and Evergy Metro primarily due to lower refueling outage amortization in 2023 and lower labor expense in 2023 driven by an increase in labor capitalization and lower employee headcount;

• a $2.5 million decrease in transmission and distribution operating and maintenance expenses primarily at Evergy Kansas Central driven by lower labor expense primarily due to an increase in labor capitalization and lower employee headcount, partially offset by a $3.6 million increase in vegetation management costs; partially offset by

• a $3.7 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received by Evergy Kansas Central and Evergy Metro in 2023 related to their ownership interest in Wolf Creek.

Depreciation and Amortization

Evergy's depreciation and amortization expense increased $34.4 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $23.5 million increase primarily due to capital additions; and

• a $10.9 million increase primarily due to a change in depreciation rates as a result of Evergy Metro's and Evergy Missouri West's 2022 rate cases effective in January 2023.

Other Expense, Net

Evergy's other expense, net decreased $26.3 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• an $18.7 million increase in investment earnings primarily driven by a $14.2 million loss from the sale of Evergy's equity investment in an early-stage energy solutions company in 2022 and a $5.8 million increase in interest and dividend income primarily due to an increase in carrying charges related to Evergy Missouri West's costs associated with the February 2021 winter weather event to be recovered through securitization financing; partially offset by a $4.7 million decrease in unrealized gains due to the change in fair value related to other equity investments;

• an $8.1 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2023; and

• a $3.6 million decrease in pension non-service costs.

Interest Expense

Evergy's interest expense increased $31.3 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by a $27.5 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates for Evergy Kansas Central, Evergy Metro and Evergy Missouri West in 2023.

LIQUIDITY AND CAPITAL RESOURCES

Evergy relies primarily upon cash from operations, short-term borrowings, long-term debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, and the payment of dividends to shareholders. See the Evergy Companies' combined 2022 Form 10-K for more information on Evergy's sources and uses of cash.

Short-Term Borrowings

As of March 31, 2023, Evergy had $952.8 million of available borrowing capacity under its master credit facility. The available borrowing capacity under the master credit facility consisted of $152.3 million for Evergy, Inc., $477.0 million for Evergy Kansas Central, $229.0 million for Evergy Metro and $94.5 million for Evergy Missouri West. The Evergy Companies' borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 6 to the consolidated financial statements for more information regarding the master credit facility.

In February 2022, Evergy, Inc. entered into a $500.0 million unsecured Term Loan Facility that originally expired in February 2023. In February 2023, Evergy, Inc. amended the $500.0 million Term Loan Facility to extend the expiration date to February 2024. As a result of the amendment, Evergy, Inc. demonstrated its intent and ability to refinance the Term Loan Facility and reflected this $500.0 million borrowing within long-term debt, net, on Evergy's consolidated balance sheet as of December 31, 2022. As of March 31, 2023, Evergy had borrowed $500.0 million under the Term Loan Facility that is reflected within notes payable and commercial paper on Evergy's consolidated balance sheet. Evergy's borrowings under the Term Loan Facility were used for, among other things, working capital, capital expenditures and general corporate purposes.

Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy may also utilize these short-term borrowings to repay maturing long-term debt until the long-term debt is able to be refinanced. Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements.

Significant Debt Issuances

See Note 7 to the consolidated financial statements for information regarding significant debt issuances.

Pensions

For the three months ended March 31, 2023, Evergy made pension contributions of $16.4 million. Evergy expects to make additional pension contributions of $22.0 million in 2023 to satisfy ERISA funding requirements and KCC and MPSC rate orders, of which $14.4 million is expected to be paid by Evergy Kansas Central and $7.6 million is expected to be paid by Evergy Metro. Also in 2023, Evergy expects to make additional post-retirement benefit contributions of $1.6 million.

Debt Covenants

As of March 31, 2023, Evergy was in compliance with all debt covenants under the master credit facility, the Term Loan Facility and certain debt instruments that contain restrictions that require the maintenance of certain capitalization and leverage ratios. See Note 6 to the consolidated financial statements for more information.

Cash Flows

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

Three Months Ended March 31			2023			2022
			(millions)
Cash Flows from Operating Activities			$	362.9		$	265.1
Cash Flows used in Investing Activities			(496.9)			(531.3)
Cash Flows from Financing Activities			137.2			262.2

Cash Flows from Operating Activities

Evergy's cash flows from operating activities increased $97.8 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by an increase in cash receipts for retail electric sales in 2023 primarily due to collection of higher December receivables in January 2023 and increases from new Evergy Metro and Evergy Missouri West retail rates effective in January 2023.

Cash Flows used in Investing Activities

Evergy's cash flows used in investing activities decreased $34.4 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by an increase in proceeds from COLI investments at Evergy Kansas Central due to a higher number of policy settlements in 2023.

Cash Flows from Financing Activities

Evergy's cash flows from financing activities decreased $125.0 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $200.0 million decrease due to higher retirements of long-term debt, net due to Evergy Metro's repayment of $300.0 million of 3.15% Senior Notes in March 2023, partially offset by Evergy Missouri West's repayment of $100.0 million of 3.74% Senior Notes in March 2022;

• a $32.5 million repayment of borrowings against cash surrender value of corporate-owned life insurance in 2023 due to settlements; and

• a $18.7 million decrease in short-term debt borrowings driven by higher borrowings in 2022 for general corporate purposes; partially offset by

• a $146.3 million increase in proceeds from long-term debt, net due to Evergy Kansas Central's issuance of $400.0 million of 5.70% FMBs in March 2023; partially offset by Evergy Missouri West's issuance of $250.0 million of 3.75% FMBs in March 2022.

EVERGY KANSAS CENTRAL, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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

Three Months Ended March 31			2023						Change						2022
			(millions)
Operating revenues			$	678.6					$	64.7					$	613.9
Fuel and purchased power			144.4						36.3						108.1
SPP network transmission costs			81.2						2.5						78.7
Operating and maintenance			107.6						(18.1)						125.7
Depreciation and amortization			124.1						4.4						119.7
Taxes other than income tax			55.7						1.2						54.5
Income from operations			165.6						38.4						127.2
Other income (expense), net			0.6						9.2						(8.6)
Interest expense			52.4						11.5						40.9
Income tax expense			8.4						4.8						3.6
Equity in earnings of equity method investees, net of income taxes			1.0						—						1.0
Net income			106.4						31.3						75.1
Less: Net income attributable to noncontrolling interests			3.1						—						3.1
Net income attributable to Evergy Kansas Central, Inc.			$	103.3					$	31.3					$	72.0

Evergy Kansas Central Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)

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

			Revenues and Expenses																		MWhs Sold
Three Months Ended March 31			2023						Change						2022						2023						Change						2022
Retail revenues			(millions)																		(thousands)
Residential			$	192.1					$	(4.0)					$	196.1					1,452						(97)						1,549
Commercial			178.1						12.9						165.2						1,672						35						1,637
Industrial			108.5						7.7						100.8						1,319						(51)						1,370
Other retail revenues			4.3						0.2						4.1						10						—						10
Total electric retail			483.0						16.8						466.2						4,453						(113)						4,566
Wholesale revenues			67.6						17.5						50.1						2,644						283						2,361
Transmission revenues			100.6						13.1						87.5						N/A						N/A						N/A
Other revenues			27.4						17.3						10.1						N/A						N/A						N/A
Operating revenues			678.6						64.7						613.9						7,097						170						6,927
Fuel and purchased power			(144.4)						(36.3)						(108.1)
SPP network transmission costs			(81.2)						(2.5)						(78.7)
Operating and maintenance (a)			(53.9)						11.1						(65.0)
Depreciation and amortization			(124.1)						(4.4)						(119.7)
Taxes other than income tax			(55.7)						(1.2)						(54.5)
Gross margin (GAAP)			219.3						31.4						187.9
Operating and maintenance (a)			53.9						(11.1)						65.0
Depreciation and amortization			124.1						4.4						119.7
Taxes other than income tax			55.7						1.2						54.5
Utility gross margin (non-GAAP)			$	453.0					$	25.9					$	427.1
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $53.7 million and $60.7 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy Kansas Central's gross margin (GAAP) increased $31.4 million for the three months ended March 31, 2023, compared to the same period in 2022, and Evergy Kansas Central's utility gross margin (non-GAAP) increased $25.9 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

• a $13.1 million increase in transmission revenue primarily due to updated transmission costs reflected in Evergy Kansas Central's FERC TFR effective in January 2023 and revised in March 2023;

• an $8.4 million increase due to mark-to-market gains related to forward contracts for natural gas and electricity entered into as economic hedges against fuel price volatility related to Evergy Kansas Central's non-regulated 8% ownership share of JEC;

• a $6.4 million increase in operating revenue related to non-regulated energy marketing activity at Evergy Kansas Central; partially offset by

• a $2.0 million decrease primarily due to lower retail sales driven by warmer winter weather (heating degree days decreased by 11%); partially offset by higher weather-normalized residential and commercial demand.

Additionally, the increase in Evergy Kansas Central's gross margin (GAAP) was also driven by:

• an $11.1 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $3.7 million decrease in operating and maintenance expense at fossil-fuel generating units, a $2.4 million decrease in operating and maintenance expense at Wolf Creek and a $3.8 million decrease in transmission and distribution operating and maintenance expenses as described further below; partially offset by

• a $4.4 million increase in depreciation and amortization expense as described further below.

Evergy Kansas Central Operating and Maintenance

Evergy Kansas Central's operating and maintenance expense decreased $18.1 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $6.8 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount compared to the first quarter of 2022;

• a $3.8 million decrease in various transmission and distribution operating and maintenance expenses primarily due to lower labor costs driven by an increase in labor capitalization and lower employee headcount, partially offset by a $2.5 million increase in vegetation management costs;

• a $3.7 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by a major maintenance outage at JEC in 2022; and

• a $2.4 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortization in 2023 and lower labor costs in 2023 driven by an increase in labor capitalization and lower employee headcount; partially offset by

• a $1.9 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received in 2023 related to Evergy Kansas Central's ownership interest in Wolf Creek; and

• a $1.8 million increase in costs billed for common use assets in 2023 from Evergy Metro related to facilities and software assets.

Evergy Kansas Central Depreciation and Amortization

Evergy Kansas Central's depreciation and amortization expense increased $4.4 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by higher capital additions in 2023.

Evergy Kansas Central Other Expense, Net

Evergy Kansas Central's other expense, net in the first quarter of 2022 became other income, net in the first quarter of 2023 as a result of a $9.2 million increase in net other income items primarily driven by:

• a $8.1 million increase due to recording higher COLI benefits in 2023;

• a $2.9 million increase in net unrealized gains in Evergy Kansas Central's rabbi trust.

Evergy Kansas Central Interest Expense

Evergy Kansas Central's interest expense increased $11.5 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by a $10.1 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023.

Evergy Kansas Central Income Tax Expense

Evergy Kansas Central's income tax expense increased $4.8 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• an $8.0 million increase due to higher pre-tax income in 2023; partially offset by

• a $2.1 million decrease primarily due to higher expected COLI proceeds in 2023; and

• a $1.6 million decrease due to higher wind and other income tax credits in 2023.

EVERGY METRO, INC.

MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS

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

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

Three Months Ended March 31			2023						Change						2022
			(millions)
Operating revenues			$	406.4					$	(16.1)					$	422.5
Fuel and purchased power			115.4						(17.1)						132.5
Operating and maintenance			65.3						(12.8)						78.1
Depreciation and amortization			102.4						19.5						82.9
Taxes other than income tax			33.5						0.1						33.4
Income from operations			89.8						(5.8)						95.6
Other expense, net			(5.5)						0.8						(6.3)
Interest expense			30.6						3.6						27.0
Income tax expense			6.9						(0.8)						7.7
Net income			$	46.8					$	(7.8)					$	54.6

Evergy Metro Gross Margin (GAAP) and Utility Gross Margin (non-GAAP)

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

			Revenues and Expenses																		MWhs Sold
Three Months Ended March 31			2023						Change						2022						2023						Change						2022
Retail revenues			(millions)																		(thousands)
Residential			$	158.0					(1.9)						$	159.9					1,329						(54)						1,383
Commercial			175.9						2.3						173.6						1,806						(3)						1,809
Industrial			28.4						(0.4)						28.8						399						—						399
Other retail revenues			2.7						0.1						2.6						17						—						17
Total electric retail			365.0						0.1						364.9						3,551						(57)						3,608
Wholesale revenues			11.4						3.7						7.7						826						(622)						1,448
Transmission revenues			3.8						(1.6)						5.4						N/A						N/A						N/A
Other revenues			26.2						(18.3)						44.5						N/A						N/A						N/A
Operating revenues			406.4						(16.1)						422.5						4,377						(679)						5,056
Fuel and purchased power			(115.4)						17.1						(132.5)
Operating and maintenance (a)			(47.6)						2.7						(50.3)
Depreciation and amortization			(102.4)						(19.5)						(82.9)
Taxes other than income tax			(33.5)						(0.1)						(33.4)
Gross margin (GAAP)			107.5						(15.9)						123.4
Operating and maintenance (a)			47.6						(2.7)						50.3
Depreciation and amortization			102.4						19.5						82.9
Taxes other than income tax			33.5						0.1						33.4
Utility gross margin (non-GAAP)			$	291.0					$	1.0					$	290.0
(a) Operating and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operating and maintenance expenses at generating units and transmission and distribution operating and maintenance expenses and have been separately presented in order to calculate gross margin as defined under GAAP. These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $17.7 million and $27.8 million for the three months ended March 31, 2023 and 2022, respectively.

Evergy Metro's gross margin (GAAP) decreased $15.9 million for the three months ended March 31, 2023, compared to the same period in 2022 and Evergy Metro's utility gross margin (non-GAAP) increased $1.0 million for the three months ended March 31, 2023, compared to the same period in 2022, both measures were driven by:

• a $3.7 million decrease primarily due to lower retail sales driven by warmer winter weather (heating degree days decreased by 11%) partially offset by higher weather-normalized residential and commercial demand; partially offset by

• a $4.7 million increase from new Evergy Metro retail rates effective in January 2023.

Additionally, the decrease in Evergy Metro's gross margin (GAAP) was also partially offset by:

• a $19.5 million increase in depreciation and amortization expense as described further below; partially offset by

• a $2.7 million decrease in operating and maintenance expenses which are determined to be directly attributable to revenue producing activities primarily driven by a $2.6 million decrease in plant operating and maintenance expense at Wolf Creek as further described below.

Evergy Metro Operating and Maintenance

Evergy Metro's operating and maintenance expense decreased $12.8 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $4.2 million decrease in administrative labor and employee benefits expenses primarily due to lower employee headcount compared to the first quarter of 2022;

• a $3.7 million decrease in various administrative and general operating and maintenance expenses primarily driven by lower regulatory amortizations as a result of Evergy Metro's 2022 rate case;

• a $2.6 million decrease in plant operating and maintenance expense at Wolf Creek primarily due to lower refueling outage amortizations in 2023 and lower labor costs driven by an increase in labor capitalization and lower employee headcount; and

• a $1.4 million decrease due to higher costs billed for common use assets in 2022, primarily to Evergy Kansas Central related to facilities and software assets; partially offset by

• a $1.8 million increase in property insurance expense due to a lower annual refund of nuclear insurance premiums received in 2023 related to Evergy Metro's ownership interest in Wolf Creek.

Evergy Metro Depreciation Expense

Evergy Metro's depreciation and amortization expense increased $19.5 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by:

• a $12.4 million increase primarily due to capital additions; and

• a $7.1 million increase due to a change in depreciation rates as a result of Evergy Metro's 2022 rate case effective in January 2023.

Evergy Metro Interest Expense

Evergy Metro's interest expense increased $3.6 million for the three months ended March 31, 2023, compared to the same period in 2022, primarily driven by a $4.3 million increase in interest expense on short-term borrowings primarily due to higher short-term debt balances and weighted-average interest rates in 2023.