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What changed in Evergy's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Evergy's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+353 added−322 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-27)

Top changes in Evergy's 2025 10-K

353 paragraphs added · 322 removed · 280 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

58 edited+14 added−3 removed31 unchanged
Biggest changeNatural Gas Evergy purchases natural gas for use in its generating units primarily through spot market purchases. From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas.
Biggest changeThe owners also have under contract all the nuclear fuel assembly fabrication services required to operate Wolf Creek through 2045. Natural Gas Evergy purchases natural gas for use in its generating units primarily through spot market purchases.
Each executive officer holds the same position with each of Evergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas South, Inc. and Evergy Missouri West, Inc. as the executive officer holds with Evergy, Inc. Executive officers serve at the pleasure of the board of directors.
Each executive officer holds the same position with each of Evergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas South, Inc. and Evergy Missouri West, Inc. as the executive officer holds with Evergy, Inc. Executive officers serve at the pleasure of Evergy's Board of Directors (Evergy Board).
Evergy expects its 2025 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues. See Item 7, MD&A, Critical Accounting Policies section, and Note 4 to the consolidated financial statements for additional information concerning regulatory matters.
Evergy expects its 2026 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages of Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's total retail revenues. See Item 7, MD&A, Critical Accounting Policies section, and Note 4 to the consolidated financial statements for additional information concerning regulatory matters.
There are no family relationships among any of the executive officers, nor any arrangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer. Name Age Current Position(s) Year First Assumed an Officer Position David A. Campbell (a) 56 Chairman, President and Chief Executive Officer 2021 W.
There are no family relationships among any of the executive officers, nor any arrangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer. Name Age Current Position(s) Year First Assumed an Officer Position David A. Campbell (a) 57 Chairman, President and Chief Executive Officer 2021 W.
Regulator Allowed Return on Equity Effective Date Evergy Kansas Central (a) KCC 9.4% (b) December 2023 Evergy Metro - Kansas KCC 9.4% (b) December 2023 Evergy Metro - Missouri MPSC (c) January 2023 Evergy Missouri West MPSC (c) January 2025 (a) The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis. 9 Table of Contents (b) Current KCC rate orders do not contain an explicit allowed return on equity.
Regulator Allowed Return on Equity Effective Date Evergy Kansas Central (a) KCC 9.7% (b) October 2025 Evergy Metro - Kansas KCC 9.4% (b) December 2023 Evergy Metro - Missouri MPSC (c) January 2023 Evergy Missouri West MPSC (c) January 2025 (a) The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis. 9 Table of Contents (b) Current KCC rate orders do not contain an explicit allowed return on equity.
The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). Evergy serves approximately 1.7 million customers located in Kansas and Missouri. Customers include approximately 1.5 million residences, 0.2 million commercial firms and 7,500 industrials, municipalities and other electric utilities.
The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). Evergy serves approximately 1.7 million customers located in Kansas and Missouri. Customers include approximately 1.5 million residences, 0.2 million commercial firms and 7,400 industrials, municipalities and other electric utilities.
Evergy Kansas Central's retail revenues averaged approximately 75% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for the remainder of Evergy Kansas Central's revenues. Evergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.
Evergy Kansas Central's retail revenues averaged approximately 74% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for the remainder of Evergy Kansas Central's revenues. Evergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter.
Evergy will remain focused on consistently delivering on its affordability, reliability and 8 Table of Contents sustainability objectives and delivering competitive long-term returns to shareholders, including growth in earnings per share and targeting a 60%-70% dividend payout ratio.
Evergy will remain focused on consistently delivering on its affordability, reliability and sustainability objectives and delivering competitive long-term returns to shareholders, 8 Table of Contents including growth in earnings per share and targeting a 50%-60% dividend payout ratio.
Evergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for Evergy Metro averaged approximately 55% and 45%, respectively, of total retail revenues over the last three years. 15 Table of Contents
Evergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for Evergy Metro averaged approximately 55% and 45%, respectively, of total retail revenues over the last three years. 16 Table of Contents
She served as Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010) and Managing Attorney of Evergy Metro (2007-2010). (f) Mr.
She served as Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010) and Managing Attorney of Evergy Metro (2007-2010). (g) Mr.
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on enabling economic development across all of its service territories to strengthen the communities it serves and meet customer electric demand growth through the continued evolution of its generation, transmission and distribution systems.
Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on enabling economic development across all of its service territories to strengthen the communities it serves and meet existing and future customer electricity demand growth through the continued evolution of its generation, transmission and distribution systems.
Evergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service territory. This competition primarily occurs within the Southwest Power Pool, Inc. (SPP) Integrated Marketplace, in which Evergy Kansas Central, Evergy Metro and Evergy Missouri West are participants.
Evergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service territory. This competition primarily occurs within the SPP Integrated Marketplace, in which Evergy Kansas Central, Evergy Metro and Evergy Missouri West are participants.
Evergy also encourages employees to participate in a comprehensive well-being program that includes health and wellness-related activities and incentives, business resource groups, gym membership reimbursement, paid volunteer hours, charitable donation match and free access to an employee assistance program. Information About Evergy's Executive Officers Set forth below is information relating to the executive officers of Evergy, Inc.
Evergy also encourages employees to participate in a comprehensive well-being program that includes health and wellness-related activities and incentives, employee resource groups, gym membership reimbursement, paid volunteer hours, charitable donation match and free access to an employee assistance program. 14 Table of Contents Information About Evergy's Executive Officers Set forth below is information relating to the executive officers of Evergy, Inc.
Elwell previously served as Senior Vice President and Chief Human Resources Officer of Evergy, Inc. (2021-2023). Ms. Elwell previously served as 14 Table of Contents Chief People Officer at J.E. Dunn Construction Company (2017-2021), as Vice President People Strategy / HR Business Partner of Walmart Corporation (2016-2017), as Vice President HR Business Partner Operations at DIRECTV, Inc.
Ms. Elwell previously served as Senior Vice President and Chief Human Resources Officer of Evergy, Inc. (2021-2023). Ms. Elwell previously served as Chief People Officer at J.E. Dunn Construction Company (2017-2021), as Vice President People Strategy / HR Business Partner of Walmart Corporation (2016-2017), as Vice President HR Business Partner Operations at DIRECTV, Inc.
Mr. Caisley previously served as Senior Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. (2021-2024). He previously served as Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. (2018-2021). Mr.
Mr. Caisley previously served as Executive Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. (2024-2025) and as Senior Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. (2021-2024). He previously served as Senior Vice President, Marketing and Public Affairs and Chief Customer Officer of Evergy, Inc. (2018-2021). Mr.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's 12 Table of Contents principal supply region of low-sulfur coal, and with local suppliers.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers.
The KEEIA programs provide for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based primarily upon demand and energy savings achieved. The costs of the programs will be recovered through a rider mechanism.
The KEEIA programs provide for the recovery of program costs, throughput disincentive and the opportunity to earn a performance incentive based primarily upon demand and energy savings achieved. The costs of the programs are recovered through a rider mechanism.
Prior to that, he served as Vice President - Information Technology (2013-2018), as Senior Director of Information Technology Applications and Delivery (2013) and Director of Information Technology Applications (2011-2013) of Evergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CenturyLink, Sprint and Accenture. Evergy Kansas Central, Inc.
Prior to that, he served as Vice President - Information Technology (2013-2018), as Senior Director of Information Technology Applications and Delivery (2013) and Director of Information Technology Applications (2011-2013) of Evergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CenturyLink, Sprint and Accenture. (h) Mr.
Evergy Metro, Inc. Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Metro serves approximately 586,500 customers located in western Missouri and eastern Kansas.
Evergy Metro, Inc. Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Metro serves approximately 591,800 customers located in western Missouri and eastern Kansas.
(b) Fuel cost in cents per net kWh delivered includes costs associated with renewable power purchase agreements. Coal During 2025, Evergy's generating units, including jointly-owned units, are projected to use approximately 15 million tons of coal.
(b) Fuel cost in cents per net kWh delivered includes costs associated with renewable power purchase agreements. Coal During 2026, Evergy's generating units, including jointly-owned units, are projected to use approximately 16 million tons of coal.
The IRP considers forecasts of future electricity demand, fuel prices, transmission improvements, new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives. The transition of Evergy's generation fleet over time is expected to result in ongoing reductions in emissions.
The IRP considers forecasts of future electricity demand, fuel prices, transmission improvements, new generating capacity, cost of environmental compliance, integration of renewables, energy storage, energy efficiency and demand response initiatives, among other factors. The modernization of Evergy's generation fleet over time is expected to result in ongoing reductions in emissions.
In addition, the Evergy Companies must prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates. The Evergy Companies use a triennial IRP, a detailed analysis that estimates factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity.
In addition, the Evergy Companies must prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates. The Evergy Companies use an integrated resource plan (IRP), a detailed analysis that estimates factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity.
The Evergy Companies employ 1,897 generation employees, 1,469 transmission and distribution employees and 1,365 support employees that work primarily in the states of Kansas and Missouri. Evergy's mission is to empower a better future and a key component of this mission is maintaining a culture that emphasizes safety, integrity, ownership and adaptability. Safety is a crucial part of Evergy's values.
The Evergy Companies employ 1,882 generation employees, 1,468 transmission and distribution employees and 1,341 support employees that work primarily in the states of Kansas and Missouri. Evergy's mission is to empower a better future and a key component of this mission is maintaining a culture that emphasizes safety, integrity, ownership and adaptability. Safety is a crucial part of Evergy's values.
(2012-2015), and in various roles of increasing responsibility, including as Vice President, with Sprint Corporation (1997-2012; 2015-2016). (e) Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary of Evergy, Inc. in June 2018. Ms.
(2012-2015), and in various roles of increasing responsibility, including as Vice President, with Sprint Corporation (1997-2012; 2015-2016). 15 Table of Contents (f) Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary of Evergy, Inc. in June 2018. Ms.
The table below summarizes the percentage of Evergy's revenues by customer class. 2024 2023 2022 Residential 37% 37% 37% Commercial 34% 33% 32% Industrial 12% 12% 12% Wholesale 5% 7% 9% Transmission 8% 7% 6% Other 4% 4% 4% Total 100% 100% 100% The table below summarizes the percentage of Evergy's retail electricity sales by customer class. 2024 2023 2022 Residential 37% 37% 38% Commercial 43% 43% 42% Industrial 20% 20% 20% Total 100% 100% 100% Regulation Evergy Kansas Central's and Evergy Metro's Kansas operations are regulated by the State Corporation Commission of the State of Kansas (KCC) and Evergy Metro's Missouri operations and Evergy Missouri West are regulated by the Public Service Commission of the State of Missouri (MPSC), in each case with respect to retail rates, certain accounting matters, standards of service and, in certain cases, the issuance of securities, certification of facilities and service territories.
The table below summarizes the percentage of Evergy's revenues by customer class. 2025 2024 2023 Residential 37% 37% 37% Commercial 33% 34% 33% Industrial 11% 12% 12% Wholesale 5% 5% 7% Transmission 9% 8% 7% Other 5% 4% 4% Total 100% 100% 100% The table below summarizes the percentage of Evergy's retail electricity sales volumes by customer class. 2025 2024 2023 Residential 37% 37% 37% Commercial 44% 43% 43% Industrial 19% 20% 20% Total 100% 100% 100% Regulation Evergy Kansas Central and Evergy Metro's Kansas operations are regulated by the State Corporation Commission of the State of Kansas (KCC) and Evergy Metro's Missouri operations and Evergy Missouri West are regulated by the Public Service Commission of the State of Missouri (MPSC), in each case with respect to retail rates, certain accounting matters, standards of service and, in certain cases, the issuance of securities, certification of facilities and service territories.
On its website, http://investors.evergy.com, Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water. The contents of the website, including reports and documents contained therein, are not incorporated into this filing. See Note 15 to the consolidated financial statements for information regarding environmental matters.
On its website, http://investors.evergy.com, Evergy provides quantitative and qualitative data regarding various environmental, social and governance matters, including information related to emissions, waste and water. The contents of the website, including reports and documents contained therein, are not incorporated into this filing.
Customers include approximately 519,700 residences, 65,000 commercial firms, and 1,800 industrials, municipalities and other electric utilities. Evergy Metro's retail revenues averaged approximately 86% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of Evergy Metro's revenues.
Customers include approximately 524,800 residences, 65,200 commercial firms, and 1,800 industrials, municipalities and other electric utilities. Evergy Metro's retail revenues averaged approximately 88% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder of Evergy Metro's revenues.
Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 744,600 customers located in central and eastern Kansas. Customers include approximately 645,300 residences, 94,100 commercial firms, and 5,200 industrials, municipalities and other electric utilities.
Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 751,000 customers located in central and eastern Kansas. Customers include approximately 651,100 residences, 94,800 commercial firms, and 5,100 industrials, municipalities and other electric utilities.
Fuel Type Estimated 2025 MW Capacity Percent of Total Capacity Coal 5,927 37 % Wind (a) 4,525 29 Natural gas and oil 4,210 27 Uranium 1,106 7 Solar and landfill gas 22 — Total capacity 15,790 100 % (a) MWs are based on nameplate capacity of the wind facility.
Fuel Type Estimated 2026 MW Capacity Percent of Total Capacity Coal 5,930 37 % Wind (a) 4,525 29 Natural gas and oil 4,229 27 Uranium 1,106 7 Solar and landfill gas 22 — Total capacity 15,812 100 % (a) MWs are based on nameplate capacity of the wind facility.
In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency. Much of the Evergy Companies' infrastructure is advanced in age, and grid resiliency efforts include building additional transmission and distribution lines, performing necessary system maintenance, replacing necessary infrastructure and proactively managing the vegetation that can damage systems during severe weather.
Much of the Evergy Companies' infrastructure is advanced in age, and grid resiliency efforts include building additional transmission and distribution lines, performing necessary system maintenance, replacing necessary infrastructure and proactively managing the vegetation that can damage systems during severe weather.
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). In 2024, the MPSC approved a portfolio of programs for the years 2025 through 2027.
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 MPSC has approved a portfolio of MEEIA programs that run through 2027.
Buckler previously served as Chief Financial Officer of OGE Energy Corp. (2021-2024). Mr. Buckler also served as Vice President of Investor Relations at Duke Energy Corp. (2019-2020) and as Director of Financial Planning and Analysis at Duke Energy Corp. (2019). (c) Mr. Caisley was appointed Executive Vice President, Public Affairs and Chief Customer Officer of Evergy, Inc. in September 2024.
Buckler previously served as Chief Financial Officer of OGE Energy Corp. (2021-2024). Mr. Buckler also served as Vice President of Investor Relations at Duke Energy Corp. (2019-2020) and as Director of Financial Planning and Analysis at Duke Energy Corp. (2019). (c) Mr. Caisley was appointed Executive Vice President, Utility Operations and Chief Customer Officer of Evergy, Inc. effective October 2025.
The coal to be provided under these contracts is expected to satisfy approximately 65%, 45% and 35% of the projected coal requirements for 2025, 2026 and 2027, respectively. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
The coal to be provided under these contracts is expected to satisfy approximately 75%, 55% and 40% of the projected coal requirements for 2026, 2027 and 2028, respectively. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases.
The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and competitive wholesale electricity prices in the region. As SPP members, Evergy Kansas Central, Evergy Metro and Evergy Missouri West are required to maintain a minimum reserve margin of 15% for 2025.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP. The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and competitive wholesale electricity prices in the region.
King (f) 60 Senior Vice President and Chief Technology Officer 2013 (a) Mr. Campbell was appointed Chairman, President and Chief Executive Officer of Evergy, Inc. in May 2024. Mr. Campbell previously served as President and Chief Executive Officer of Evergy, Inc. (2021-2024), Executive Vice President and Chief Financial Officer of Vistra Energy Corp.
Campbell was appointed Chairman, President and Chief Executive Officer of Evergy, Inc. in May 2024. Mr. Campbell previously served as President and Chief Executive Officer of Evergy, Inc. (2021-2024), Executive Vice President and Chief Financial Officer of Vistra Energy Corp.
In Kansas, Evergy Kansas Central and Evergy Metro currently offer a suite of energy efficiency programs for customers under the Kansas Energy Efficiency Investment Act (KEEIA). The current portfolio of programs was approved by the KCC for March 2024 through February 2028.
In Kansas, Evergy Kansas Central and Evergy Metro currently offer a suite of energy efficiency programs for customers under the Kansas Energy Efficiency Investment Act (KEEIA). The KCC has approved a portfolio of KEEIA programs that run through February 2028.
The trajectory and timing of achieving emissions reductions relative to 2005 levels and Evergy's long-term emissions reduction goal are expected to be dependent on the evolution of Evergy's integrated resource plans (IRP) and many external factors, including enabling technology developments, trends in total demand for electricity, 11 Table of Contents the reliability of the power grid, availability of transmission capacity, supportive energy policies and regulations, among other external factors.
The trajectory and timing of achieving Evergy's long-term emissions reduction goal is expected to be dependent on the evolution of Evergy's IRPs and many external factors, including enabling technology developments, trends in total demand for electricity, the reliability of the power grid, availability of transmission capacity and supportive energy policies and regulations, among other external factors.
The core tenets of Evergy's strategy are as follows: • Affordability – maintaining affordable rates while investing in infrastructure and technology to meet customer demand; • Reliability – targeting top-tier performance in reliability, customer service and generation; and • Sustainability – advancing a responsible fleet transition while ensuring affordability and reliability.
The core tenets of Evergy's strategy are as follows: • Affordability – maintaining affordable rates while investing in infrastructure and technology to support growth and prosperity; • Reliability – targeting top-tier performance in reliability, customer service and generation; and • Sustainability – advancing an "all-of-the-above" generation portfolio.
The owners of Wolf Creek have on hand or under contract all the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through the first quarter of 2030. The owners also have under contract all the nuclear fuel assembly fabrication services required to operate Wolf Creek through 2045.
This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through 2030.
The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses. For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change.
For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change. In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency.
Human Capital Resources As of December 31, 2024, the Evergy Companies had 4,731 employees, including 2,494 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW) and one local union of the United Government Security Officers of America (UGSOA).
Human Capital Resources As of December 31, 2025, the Evergy Companies had 4,691 employees, including 2,479 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW) and one local union of the United Government Security Officers of America (UGSOA). The Evergy Companies' labor agreements expire at varying times from 2026 through 2028.
Fuel cost in cents per Fuel Mix (a) net kWh delivered Actual Actual Fuel 2024 2024 Coal 38 % 2.39¢ Wind, landfill gas and solar (b) 32 1.82 Uranium 19 0.66 Natural gas and oil 11 3.25 Total 100 % 1.97 (a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable power purchase agreements.
Fuel cost in cents per Fuel Mix (a) net kWh delivered Actual Actual Fuel 2025 2025 Coal 47 % 2.27¢ Wind, landfill gas and solar (b) 28 1.83 Uranium 18 0.64 Natural gas and oil 7 4.47 Total 100 % 2.02 (a) Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable power purchase agreements.
Beginning in 2026, Evergy Kansas Central, Evergy Metro and Evergy Missouri West will be required to maintain a minimum reserve margin of 16%. This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply.
This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply.
Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy Incorporated (Great Plains Energy), Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008). (d) Ms. Elwell currently serves as Senior Vice President, Chief People Officer of Evergy, Inc. Ms.
Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy Incorporated (Great Plains Energy), Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008). (d) Mr. Bridson was appointed Senior Vice President, Generation and Operations Support of Evergy, Inc., effective October 2025.
Strategies that the Evergy Companies are pursuing to advance a responsible portfolio transition include: • retiring older coal-fired generation or converting coal-fired generation resources to natural gas; • developing renewable energy and natural gas facilities; • grid investment and advancement; • collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and • investing in customer energy efficiency programs.
Strategies that the Evergy Companies are pursuing to modernize and expand the generation fleet include: • developing natural gas and renewable energy facilities; • exploring opportunities to add battery energy storage systems and nuclear generation; • grid investment and advancement; • collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and • investing in customer energy efficiency programs.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have also entered into rail transportation contracts with various railroads to transport coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy 70%, 25% and 25% of the projected transportation requirements for 2026, 2027 and 2028, respectively.
Nuclear Fuel Evergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies.
The contract rates adjust for changes in railroad costs. Nuclear Fuel Evergy Kansas South and Evergy Metro each own 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor.
The Southern Star Central Gas Pipeline, Inc. arrangement expires based on the generating unit being served with expiration dates from 2025 to 2030. Customer Energy Efficiency Programs The Evergy Companies have implemented, and continue to offer, energy efficiency programs to help customers with their energy efficiency needs and to help manage energy costs.
These agreements expire based on the generating unit being served with expiration dates from 2026 to 2031. 13 Table of Contents 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.
Includes owned generating capacity of 778 MWs and long-term power purchase agreements of approximately 3,747 MWs of wind generation that expire from 2028 through 2048. See Item 2, Properties, for additional information. 10 Table of Contents Evergy's projected peak summer demand for 2025 is approximately 10,600 MWs.
Includes owned generating capacity of 778 MWs and long-term power purchase agreements of approximately 3,747 MWs of wind generation that expire from 2028 through 2048.
For additional information about Evergy's exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk. Evergy Kansas Central, Evergy Metro and Evergy Missouri West maintain natural gas transportation arrangements with Southern Star Central Gas Pipeline, Inc.
From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about Evergy's exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk. Evergy Kansas Central, Evergy Metro and Evergy Missouri West maintain various natural gas transportation arrangements.
Bryan Buckler (b) 52 Executive Vice President and Chief Financial Officer 2024 Charles A. Caisley (c) 51 Executive Vice President, Public Affairs and Chief Customer Officer 2011 Lesley L. Elwell (d) 54 Senior Vice President, Chief People Officer 2021 Heather A. Humphrey (e) 54 Senior Vice President, General Counsel and Corporate Secretary 2010 Charles L.
Bryan Buckler (b) 53 Executive Vice President and Chief Financial Officer 2024 Charles A. Caisley (c) 52 Executive Vice President, Utility Operations and Chief Customer Officer 2011 John T. Bridson (d) 56 Senior Vice President, Generation and Operations Support 2025 Lesley L. Elwell (e) 55 Senior Vice President, Chief People Officer 2021 Heather A.
Evergy expects to meet its projected capacity requirements for 2025 with its existing generation assets and power purchases. See "Transitioning Evergy's Generation Fleet" below for further information regarding Evergy's long-term strategy with regard to its generating assets and power purchases. Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP.
Evergy's projected peak summer demand for 2026 is approximately 11,200 MWs. Evergy expects to meet its projected capacity requirements for 2026 with its existing generation assets and power purchases. See "Modernizing and Expanding Evergy's Generation Fleet" below for further information regarding Evergy's long-term strategy with regard to its generating assets and power purchases.
Since 2005, the Evergy Companies have added over 4,600 MWs of renewable generation, while retiring more than 2,400 MWs of fossil generation. See Item 2, Properties, for additional information regarding the Evergy Companies' renewable generation resources. The Evergy Companies are also committed to transparency.
Since 2005, the Evergy Companies have added over 4,500 MWs of renewable generation capacity, while retiring more than 2,400 MWs of fossil generation.
The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion. Transitioning Evergy's Generation Fleet Evergy is committed to a long-term strategy focused on affordability, reliability and sustainability, including the responsible transition of the generation fleet.
The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion.
Fuel The fuel sources for Evergy's owned generation and power purchase agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 2024 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.
The actual 2025 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table.
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A. Risk Factors, for additional information. Diversity of fuel supply has historically provided cost and reliability benefits. For example, because renewable generation can be intermittent, diversity of baseload generation fuel, including a mix of uranium, coal and natural gas, has helped to maintain a consistent availability of power.
Evergy’s generation portfolio balances various fuel types which have historically provided cost and reliability benefits. For example, because renewable generation can be intermittent, a portfolio with dispatchable baseload generation that relies on varying fuel types, including a mix of uranium, coal and natural gas, has helped to maintain 11 Table of Contents a consistent availability of power.
These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' operations, financial position and cash flows. See Part I, Item 1A, Risk Factors, for additional information. The Evergy Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the change in presidential administrations.
These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' operations, financial position and cash flows. See Part I, Item 1A, Risk Factors, for additional information. The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses.
In 2024, Evergy's total CO 2 emissions from owned generation units were more than 50% lower than 2005 levels. Through the responsible transition of its generation fleet, Evergy has a long-term goal to achieve net-zero carbon dioxide equivalent (CO 2 e) emissions, for scope 1 and scope 2 emissions, by 2045.
Through the ongoing modernization of its generation fleet, Evergy has a long-term goal to achieve net-zero carbon dioxide equivalent (CO 2 e) emissions, for scope 1 and scope 2 emissions, by 2050, a time frame that is consistent with the majority of industry peers with stated net-zero emissions goals.
Removed
Given the age, cost and emissions profile of Evergy's current fossil plants, Evergy expects to retire coal-fired generating units over time or convert these units to alternative fuel sources such as natural gas. This generation portfolio transition is expected to have a corresponding impact on CO 2 emissions, continuing a long-term trend.
Added
See Item 2, Properties, for additional information. 10 Table of Contents Evergy has also entered into multiple firm capacity agreements with effective dates beginning between 2025 and 2028 to help it meet its projected load capacity requirements. These agreements total approximately 600 MWs and contain various expiration dates ranging between 2029 and 2033.
Removed
The transportation services to be provided under these contracts are expected to satisfy all of the projected transportation requirements for 2025 and 60% and 20% of the projected transportation requirements for 2026 and 2027, respectively. The contract rates adjust for changes in railroad costs.
Added
As SPP members, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were required to maintain a minimum reserve margin of 15% for 2025. Beginning in 2026, Evergy Kansas Central, Evergy Metro and Evergy Missouri West will be required to maintain a minimum reserve margin of 16%.
Removed
The Evergy Companies currently have labor agreements with four unions that expire at varying times in 2025 through 2027 and one labor agreement that is operating under an 13 Table of Contents extension while a long-term agreement is being negotiated.
Added
Modernizing and Expanding Evergy's Generation Fleet Evergy is committed to a long-term strategy focused on affordability, reliability and sustainability, including fostering economic development in Kansas and Missouri by supporting the attraction of new businesses and large load customers while ensuring protections for existing customers through key safeguards included in the Large Load Power Service (LLPS) rate plans.
Added
The fleet modernization steps outlined above will allow Evergy to support economic expansion in Kansas and Missouri and, as reflected in Evergy's IRPs, are expected in the future to be accompanied by the retirement of older coal-fired generation units and/or the conversion of coal-fired generation resources to natural gas.
Added
This generation modernization is expected to have a corresponding impact on CO 2 emissions, continuing a long-term downward trend. In 2025, Evergy's total CO 2 emissions from owned generation units were nearly 50% lower than 2005 levels.
Added
See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A. Risk Factors, for additional information. See Item 2, Properties, for additional information regarding the Evergy Companies' renewable generation resources. The Evergy Companies are also committed to transparency.
Added
See Note 15 to the consolidated financial statements for information regarding environmental matters. 12 Table of Contents Fuel The fuel sources for Evergy's owned generation and power purchase agreements are coal, wind and other renewable sources, uranium and natural gas and oil.
Added
Humphrey (f) 55 Senior Vice President, General Counsel and Corporate Secretary 2010 Charles L. King (g) 61 Senior Vice President and Chief Technology Officer 2013 Cleveland O. Reasoner (h) 60 Senior Vice President and Chief Nuclear Officer 2025 Matthew B. Gummig (i) 40 Vice President and Chief Accounting Officer 2025 (a) Mr.
Added
Mr. Bridson previously served as Vice President, Generation of Evergy, Inc. (2019-2025). He previously served as Senior Vice President, Generation and Marketing of Evergy Kansas Central (2015-2018).
Added
He joined Evergy Kansas Central in 1993 and held several positions with the company, including Vice President of Generation, Executive Director of Generation, Executive Director of Lawrence Energy Center, Executive Director of Gas-fired Power Plants, Director of Operations and Plant Engineer at Jeffrey Energy Center. (e) Ms. Elwell currently serves as Senior Vice President, Chief People Officer of Evergy, Inc.
Added
Reasoner was appointed Senior Vice President and Chief Nuclear Officer of Evergy, Inc., effective October 2025. Mr. Reasoner previously served as Vice President and Chief Nuclear Officer of Evergy, Inc (2019-2025). Mr. Reasoner also serves as President and Chief Executive Officer, Board of Directors Member, Chief Nuclear Officer and Treasurer of Wolf Creek Nuclear Operating Corporation (2019-present).
Added
He previously served as Senior Vice President, Chief Nuclear Officer of Wolf Creek Nuclear Operating Corporation (2018-2019) and Site Vice President of Wolf Creek Nuclear Operating Corporation (2014-2018). Prior to joining Wolf Creek Nuclear Operating Corporation, Mr. Reasoner served as Vice President of Engineering at Ameren Corporation's Callaway nuclear power plant and Site Vice President (2009-2014).
Added
Before joining Ameren's Callaway plant, Mr. Reasoner started his nuclear career at Arkansas Nuclear One and served in a variety of engineering roles. (i) Mr. Gummig was appointed Vice President and Chief Accounting Officer of Evergy, Inc., effective April 2025. Mr. Gummig previously served as Director of External Reporting, Policy and Property Accounting of Evergy, Inc. (2023-2025).
Added
Prior to that, he held the position of Senior Manager of External Reporting and various other roles of increasing responsibility within Evergy, Inc.'s accounting organization (2012-2023). Mr. Gummig also served in various roles within the assurance practice of Ernst & Young (2009-2011). Evergy Kansas Central, Inc.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

59 edited+9 added−8 removed142 unchanged
Biggest changeOn an annual basis, Evergy Kansas South and Evergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets.
Biggest changeWolf Creek commenced operations in 1985 and the age of Wolf Creek may increase the risk of unplanned outages and may result in higher maintenance costs. 25 Table of Contents On an annual basis, Evergy Kansas South and Evergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life.
Business - Environmental Matters and Note 15 to the consolidated financial statements for additional information. In general, over time these laws and regulations have become and continue to become increasingly stringent and compliance with these laws and regulations require an increasing share of capital and operating resources, which may reduce the resources available for other business objectives, including capital investments.
Business - Environmental Matters and Note 15 to the consolidated financial statements for additional information. In general, over time these laws and regulations have become increasingly stringent and compliance with these laws and regulations require an increasing share of capital and operating resources, which may reduce the resources available for other business objectives, including capital investments.
In addition, the Evergy Companies may in the future 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.
In addition, the Evergy Companies may in the future 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.
These external factors are outside of Evergy's direct control, and without these enabling factors, Evergy cannot be confident in achieving its net-zero carbon reduction goal. In addition, any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies and the market prices of Evergy's common stock.
These external factors are outside of Evergy's direct control, and without these enabling factors, Evergy cannot be confident in achieving its net-zero carbon reduction goal. Any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies and the market prices of Evergy's common stock.
Furthermore, any damage caused to the Evergy Companies' assets, loss of service to customers or liability imposed as a result of wildfires could negatively impact Evergy's financial condition, results of operations and cash flows. Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows.
Furthermore, any damage caused to the Evergy Companies' assets, loss of service to customers or liability imposed as a result of wildfires could negatively impact Evergy's results of operations, financial position and cash flows. Changes in electricity consumption could have a material adverse effect on Evergy's results of operations, financial position and cash flows.
The Evergy Companies use technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have indicated an increase in cyberattacks in general due, in part, to the increase in the number of employees working remotely and the proliferation of the different ways in which people interact with their technology infrastructure.
The Evergy Companies use technology to enable remote-working arrangements, which may increase or expose previously unknown vulnerabilities. Public reports have indicated an increase in cyberattacks in general due, in part, to employees working remotely and the proliferation of the different ways in which people interact with their technology infrastructure.
Additionally, changes in corporate tax rates or policy changes, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the results of operations, financial position and liquidity of the Evergy Companies.
Changes in corporate tax rates or policy changes, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the results of operations, financial position and liquidity of the Evergy Companies.
Financial Risks: Financial market volatility or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results. The Evergy Companies rely on funds from operations and access to the capital and credit markets to fund capital expenditures and for working capital and liquidity.
Financial market volatility or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results. The Evergy Companies rely on funds from operations and access to the capital and credit markets to fund capital expenditures and for working capital and liquidity.
The risks of any capital project include: actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; increased inflation or the imposition of tariffs on imported goods 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 risks of any capital project include: actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; increased inflation or the imposition of tariffs on imported goods may render previously estimated costs to be inaccurate; delays due to regulatory or judicial action; 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.
While the inflation rate and prices have increased, the Evergy Companies, and the energy industry as a whole, have experienced an upward trend in spending, especially with respect to infrastructure investments, which is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms.
While the inflation rate and prices have increased, the Evergy Companies, and the energy industry as a whole, have experienced an upward trend in spending, especially with respect to new generation and infrastructure investments, which is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms.
In response to competitive, economic, political, legislative, public perception and regulatory pressures, Evergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period for the benefit of customers.
In response to competitive, economic, political, legislative, public perception, customer affordability and regulatory pressures, Evergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period for the benefit of customers.
The Evergy Companies did 17 Table of Contents not apply for an extension, however, the EPA's proposed determinations on applications 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.
The Evergy Companies did not apply for an extension; however, the EPA's proposed determinations on applications 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 18 Table of Contents unit closure.
International tensions from any source, including the ramifications of regional conflict or increased tariffs, could further exacerbate the global supply chain turmoil. These disruptions and shortages could adversely impact business operations and corporate strategy. The current presidential administration has implemented tariffs on certain imported goods and may impose additional tariffs.
International tensions from any source, including the ramifications of regional conflict or increased tariffs, could further exacerbate the global supply chain uncertainty. These disruptions and shortages could adversely impact business operations and corporate strategy. The current presidential administration has implemented tariffs on certain imported goods and may impose additional tariffs.
The trajectory and timing of achieving emissions reductions and the 2045 goal are expected to be dependent on the evolution of Evergy's IRPs and many external factors, including enabling technology developments, trends in total demand for electricity, the reliability of the power grid, availability of transmission capacity, supportive energy policies and regulations, and other factors.
The trajectory and timing of achieving emissions reductions and the 2050 goal are expected to be dependent on the evolution of Evergy's IRPs and many external factors, including enabling technology developments, trends in the total demand for electricity, the reliability of the power grid, availability of transmission capacity, supportive energy policies and regulations, and other factors.
No assurance can be given that the expected load growth and economic development in the Evergy Companies' service territory will occur, or that the Evergy Companies will be successful in implementing their strategy in a timely manner or at all, and a failure to do so could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies and have an adverse impact on the price of Evergy’s common stock.
No assurance can be given that the expected electricity demand growth and economic development in the Evergy Companies' service territory will occur, or that the Evergy Companies will be successful in implementing their strategy in a timely manner or at all, and a failure to do so could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies and have an adverse impact on the price of Evergy’s common stock.
Transmission constraints and delays in the transmission planning and construction processes could impair the ability of the Evergy Companies to sell and transmit electricity generated by these generation facilities, which could have an adverse impact on the results of operations and financial position of the Evergy Companies.
Transmission constraints and delays in the transmission planning and construction processes could impair the ability of the Evergy Companies to sell and transmit electricity generated by these generation facilities, which could have an adverse impact on the results of operations, financial position and cash flows of the Evergy Companies.
The delivery of components, materials, equipment and other resources that are critical to the Evergy Companies' business operations and corporate strategy has been restricted by domestic and global supply chain turmoil. This has resulted in the shortage of critical items.
The delivery of components, materials, equipment and other resources that are critical to the Evergy Companies' business operations and corporate strategy has been restricted by domestic and global supply chain uncertainty. This has resulted in the shortage of critical items.
The Evergy Companies also use technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial reporting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers.
The Evergy Companies also use technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with 26 Table of Contents financial reporting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers.
Furthermore, although the Evergy Companies maintain information security risk insurance coverage, such insurance may not be adequate to cover any associated losses. Any of the foregoing could have a material adverse impact on the Evergy Companies' results of operations, financial position and cash flows.
Furthermore, although the Evergy Companies maintain information security risk insurance coverage, 27 Table of Contents such insurance may not be adequate to cover any associated losses. Any of the foregoing could have a material adverse impact on the Evergy Companies' results of operations, financial position and cash flows.
The possibility of wildfires and the risk of damage to the Evergy Companies' network and facilities resulting therefrom may be exacerbated by severe weather events and the effects of climate change. The continued expansion of the wildland-urban interface has also increased wildfire risk to communities in the Evergy Companies' service territories.
The 23 Table of Contents possibility of wildfires and the risk of damage to the Evergy Companies' network and facilities resulting therefrom may be exacerbated by severe weather events and the effects of climate change. The continued expansion of the wildland-urban interface has also increased wildfire risk to communities in the Evergy Companies' service territories.
The Evergy Companies rely upon technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, 25 Table of Contents transmission and distribution of electricity, supply chain functions and the invoicing and collection of payments from customers.
The Evergy Companies rely upon technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, transmission and distribution of electricity, supply chain functions and the invoicing and collection of payments from customers.
Although the Evergy Companies generally have regulatory mechanisms that allow them to recover the cost of fuel and purchased power necessary to satisfy these requirements, regulatory or legislative actions could limit, eliminate or delay recovery of these expenses after the expenses have been incurred.
Although the Evergy Companies generally have regulatory mechanisms that allow them to recover the cost of fuel and purchased power 21 Table of Contents 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 liability that the Evergy Companies may incur with respect to any of these cases may be in excess of amounts currently accrued and insured against with respect to such matters and could have a material adverse effect on the financial results for the Evergy Companies.
The liability that the Evergy Companies may incur 29 Table of Contents with respect to any of these cases may be in excess of amounts currently accrued and insured against with respect to such matters and could have a material adverse effect on the financial results for the Evergy Companies.
A variety of factors, including transmission constraints, IRS interpretation on the calculation of the credits, a change in law or regulation, the ability to timely complete construction of renewable energy facilities, adverse weather conditions and breakdown or failure of equipment, could significantly reduce these tax credits, which could have an adverse impact on the results of operations and financial position of the Evergy Companies. 21 Table of Contents The anticipated benefits of the Evergy Companies' strategy may not be realized.
A variety of factors, including transmission constraints, IRS interpretation on eligibility as well as the calculation of the credits, a change in law or regulation, the ability to timely complete construction of renewable energy facilities, adverse weather conditions and breakdown or failure of equipment, could significantly reduce these tax credits, which could have an adverse impact on the results of operations and financial position of the Evergy Companies. 22 Table of Contents The anticipated benefits of the Evergy Companies' strategy may not be realized.
These disruptions and constraints could have a material adverse effect on the business, results of operations, financial position and cash flows of the Evergy Companies. Supply chain disruptions have contributed to higher prices of components, materials, equipment and other needed commodities.
These disruptions and constraints could have a material adverse effect on the business, results of operations, financial position and cash flows of the Evergy Companies. 20 Table of Contents Supply chain disruptions have contributed to higher prices of components, materials, equipment and other needed commodities.
In addition, the rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the costs and revenues of the Evergy Companies. 28 Table of Contents Litigation Risks: The outcome of legal proceedings cannot be predicted.
In addition, the rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the costs and revenues of the Evergy Companies. Litigation Risks: The outcome of legal proceedings cannot be predicted.
Insufficient wildfire insurance coverage, increased wildfire insurance costs and a lack of wildfire insurance availability could adversely impact the Evergy Companies' financial condition, results of operations and cash flows.
Insufficient wildfire insurance coverage, increased wildfire insurance costs and a lack of wildfire insurance availability could adversely impact the Evergy Companies' results of operations, financial position and cash flows.
Additionally, because many of the Evergy Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations.
Additionally, because many of the Evergy 24 Table of Contents Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations.
An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of the 23 Table of Contents Evergy Companies' service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.
An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of the Evergy Companies' service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies.
The increasing costs associated with health care plans could have an adverse impact on the results of operations, financial position and cash flows of the Evergy Companies. 20 Table of Contents The Evergy Companies are subject to commodity and other risks associated with energy markets.
The increasing costs associated with health care plans could have an adverse impact on the results of operations, financial position and cash flows of the Evergy Companies. The Evergy Companies are subject to commodity and other risks associated with energy markets.
If cash flows from operations are lower than expected or the costs of these capital investments are higher than expected, additional debt and equity will be required to fund the investments, which, in turn, may result in a decrease in the market value of Evergy's 18 Table of Contents common stock, create pressure on the Evergy Companies' credit ratings or result in a ratings downgrade and increase their cost of capital.
If cash flows from operations are lower than expected or the costs of these capital investments are higher than expected, additional debt, equity and hybrid securities will be required to fund the investments, which, in turn, may result in a decrease in the market value of Evergy's common stock, create pressure on the Evergy Companies' credit ratings or result in a ratings downgrade and increase their cost of capital.
The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution, and 26 Table of Contents information systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage.
The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution, and information systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage.
The constraints in the supply chain could restrict the availability and delay the construction, maintenance or repair of items that are needed to support normal operations or are required to execute on the Evergy Companies' corporate strategy for continued capital investment in utility equipment and impact the strategy to transition its generation 19 Table of Contents fleet.
The constraints in the supply chain could restrict the availability and delay the construction, maintenance or repair of items that are needed to support normal operations or are required to execute on the Evergy Companies' corporate strategy for continued capital investment in utility equipment and impact the strategy to modernize its generation fleet.
In addition, while the Evergy Companies maintain wildfire insurance, insurance coverage may not be sufficient to cover all losses the Evergy Companies may incur as a result of wildfires. Wildfires could also lead to significant financial distress, credit rating downgrades and further increased costs for wildfire insurance or lack of availability thereof.
In addition, while the Evergy Companies maintain wildfire insurance, insurance coverage may not be sufficient to cover all losses the Evergy Companies may incur as a result of wildfires. Wildfires could also lead to significant financial distress, credit rating downgrades, limits on the ability to access capital markets and further increased costs for wildfire insurance or lack of availability thereof.
Additionally, Evergy may not declare or pay any cash dividend or distribution on its capital stock during any period in which Evergy defers interest on its junior subordinated notes that were issued in December 2024. In addition, from time to time Evergy has in the past and may in the future guarantee debt obligations of its subsidiaries.
Additionally, Evergy may not declare or pay any cash dividend or distribution on its capital stock during any period in which Evergy defers interest on its outstanding junior subordinated notes. In addition, from time to time Evergy has in the past and may in the future guarantee debt obligations of its subsidiaries.
See Part II, Item 7, MD&A - Liquidity and Capital Resources - Capital Expenditures for additional information. 27 Table of Contents These and other risks could also cause the Evergy Companies to defer or limit capital expenditures, materially increase the costs of capital projects, delay the in-service dates of projects, adversely affect the performance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed.
See Part II, Item 7, MD&A - Liquidity and Capital Resources - Capital Expenditures for additional information. 28 Table of Contents These and other risks could also cause the Evergy Companies to defer or limit capital expenditures, materially increase the costs of capital projects, incur penalties from the SPP for insufficient capacity reserve margins, delay the in-service dates of projects, adversely affect the performance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed.
The Evergy Companies plan to continue to make significant capital investments in renewable and natural gas 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, debt and equity.
The Evergy Companies plan to continue to make significant capital investments in natural gas and renewable generation and other forms of capacity 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 issuances of debt, equity and hybrid securities.
The completion of capital projects, including the construction of natural gas plants, involves substantial risks that could materially affect the Evergy Companies' financial condition, results of operations, or liquidity.
The completion of capital projects, including the construction of natural gas and renewable generating facilities, involves substantial risks that could materially affect the Evergy Companies' financial condition, results of operations, or liquidity.
The Evergy Companies entered into the equipment purchase ahead of regulatory approval in an attempt to adhere to project timelines and the expected completion dates.
The Evergy Companies have entered into certain equipment purchases ahead of regulatory approval in an attempt to adhere to anticipated project timelines and expected completion dates.
Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; the ability of the Evergy Companies to implement their strategic plan; the ability of Evergy to deploy capital; actions by regulators including authorized return on equity and equity capital structure levels that could impact the ability to attract capital; and statements in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial position or results of operations.
Some of the factors that could affect the price of Evergy common stock are Evergy's earnings; the ability of the Evergy Companies to implement their strategic plan; the ability of Evergy to deploy capital; actions by regulators including authorized return on equity and equity capital structure levels that could impact the ability to attract capital; anticipated demand for electricity from large load customers not occurring as projected or not sustained as projected; and statements in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, results of operations or financial position.
If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating resources are not dispatched, each could experience decreased levels of wholesale electricity sales. The Evergy Companies' strategic plan includes adding a significant amount of renewable and natural gas generation.
The SPP's rules are primarily designed to provide for maximum cost-effectiveness. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating resources are not dispatched, each could experience decreased levels of wholesale electricity sales. The Evergy Companies' strategic plan includes adding a significant amount of natural gas and renewable generation.
Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, potential tariffs on imported goods that may be levied by the current presidential administration, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors could 16 Table of Contents lead to increased expenses, lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures.
Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, the impact 17 Table of Contents of tariffs and trade policy, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors could lead to increased expenses, lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures.
The future development of AI technologies and the nature of any related new laws and regulations, and their costs and consequences, cannot be reasonably predicted at this time. The cost and schedule of capital projects may materially change and expected performance may not be achieved. The Evergy Companies' business is capital intensive and includes significant construction projects.
The future development of AI technologies and the nature of any related new laws and regulations, and their costs and consequences, cannot be reasonably predicted at this time. The cost and schedule of capital projects, including the construction of new natural gas and renewable generating facilities, may materially change and expected performance may not be achieved.
In addition, the Evergy Companies construct and operate renewable energy facilities that generate tax credits that reduce federal income tax obligations. The Evergy Companies are also eligible under current law for production tax credits related to the generation of electricity from nuclear energy.
In addition, the Evergy Companies construct and operate renewable energy facilities that generate tax credits that reduce federal income tax obligations. The Evergy Companies are also eligible under current law for production tax credits related to the generation of electricity from nuclear energy. The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025.
The Evergy Companies' strategy also includes the planned retirement or conversion to natural gas of coal-fired generation resources. If regulators determine that the retirement or conversion of coal generation facilities was not prudent, they could prohibit the Evergy Companies from recovering, or earning a return on, the investments in those facilities that were prudent when the investments were originally made.
If regulators determine that the modernization and expansion of the generation fleet or the retirement or conversion of coal generation facilities were not prudent, they could prohibit the Evergy Companies from recovering, or earning a return on, the investments in those facilities that were prudent when the investments were originally made.
The Evergy Companies could be held liable for damages incurred as a result of wildfires or incur reputational harm if it was determined that the wildfires were caused by or enhanced due to any fault of the Evergy Companies.
The law also requires plaintiffs to prove fire-related claims by a preponderance of the evidence. Despite these statutory limitations, the Evergy Companies could still be held liable for damages incurred as a result of wildfires or incur reputational harm if it was determined that the wildfires were caused by or enhanced due to any fault of the Evergy Companies.
Evergy has a goal to achieve net-zero CO 2 e emissions, for scope 1 and 2 emissions, by 2045 through the responsible transition of the Evergy Companies' generation fleet.
Evergy has a goal to achieve net-zero CO 2 e emissions, for scope 1 and 2 emissions, by 2050 through the responsible transition of the Evergy Companies' generation fleet. This time frame is consistent with the majority of industry peers with stated net-zero emissions goals.
A reduction in, or disallowance of, these tax benefits could have an adverse impact on the financial results and liquidity of the Evergy Companies. The current presidential administration may seek to alter current tax policy, including tax rates, tax credits and incentives.
A reduction in, or disallowance of, these tax benefits could have an adverse impact on the financial results and liquidity of the Evergy Companies.
Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers. If the Evergy Companies are unable to adjust to reduced electricity demand and increased self-generation and net energy metering, their financial position and results of operations could be adversely affected.
Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers.
A significant portion of the Evergy Companies' workforce is represented by five local unions of the IBEW and one local union of the UGSOA. The Evergy Companies currently have labor agreements with four unions that expire at varying times in 2025 through 2027 and one labor agreement is operating under an extension while a long-term agreement is being negotiated.
A significant portion of the Evergy Companies' workforce is represented by five local unions of the IBEW and one local union of the UGSOA. The Evergy Companies currently have labor agreements that expire at varying times from 2026 through 2028.
The amount of tax credits is dependent on several factors, including the amount of electricity produced and the applicable tax credit rate.
The OBBBA, among other things, changed most of the federal renewable energy initiatives. Furthermore, the amount of tax credits is dependent on several factors, including the amount of electricity produced and the applicable tax credit rate.
Increased capital expenditures could cause Evergy Kansas Central, Evergy Metro or Evergy Missouri West to exceed the applicable limitation resulting in an adverse impact to the Evergy Companies' results of operations, financial position and cash flows. Furthermore, the United States' economy experienced a significant rise in the inflation rate in the post-pandemic era compared to recent historical inflation rates.
Increased capital expenditures could cause Evergy Kansas Central, Evergy Metro or Evergy Missouri West to exceed the applicable limitation resulting in an adverse impact to the Evergy Companies' results of operations, financial position and cash flows. Furthermore, there remains uncertainty in the near-term outlook as to whether inflation will remain elevated compared to pre-pandemic inflation rates.
As a result, Evergy Kansas Central has entered a consent order with the EPA and additional groundwater monitoring activities have been initiated at the site. The EPA has begun issuing CCR Part A and Part B rule extension application determinations for companies that applied for approval to operate unlined or clay-lined impoundments beyond April 2021.
The EPA has begun issuing coal combustion residual (CCR) Part A and Part B rule extension application determinations for companies that applied for approval to operate unlined or clay-lined impoundments beyond April 2021.
The Evergy Companies' strategy includes maintaining rigorous cost management and planned increases in capital investment levels to meet expected load growth and economic development in their service territory. 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 and natural gas generation.
The Evergy Companies' strategy includes maintaining rigorous cost management and planned increases in capital investment levels to meet expected electricity demand growth and economic development in their service territory.
If a long-term outage occurred, the state regulatory commissions could 24 Table of Contents reduce rates by excluding the Wolf Creek investment from rate base. Wolf Creek commenced operations in 1985 and the age of Wolf Creek may increase the risk of unplanned outages and may result in higher maintenance costs.
If a long-term outage occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base.
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 to address environmental justice issues in communities that are marginalized, underserved and overburdened by pollution.
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. Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits.
While the inflation rate has subsided due, in part, to actions taken by the Federal Reserve Bank, there remains uncertainty in the near-term outlook as to whether inflation will remain elevated. Increases in inflation raise the Evergy Companies' costs for labor, materials and services, and a failure to recover these increased costs could result in under-recovery.
Increases in inflation raise the Evergy Companies' costs for labor, materials and services, and a failure to recover these increased costs could result in under-recovery.
Further, Evergy Kansas Central and Evergy Metro have outstanding tax-exempt bonds with interest rates that are determined each week.
While the Evergy Companies currently expect sufficient available debt and equity capital from public and private funding sources, there is no guarantee such sources will be available in the future. Further, Evergy Kansas Central and 19 Table of Contents Evergy Metro have outstanding tax-exempt bonds with interest rates that are determined each week.
While the Evergy Companies proactively take steps to mitigate wildfire risk in the areas of its electrical 22 Table of Contents assets, wildfire risk is always present.
While the Evergy Companies proactively take steps to mitigate wildfire risk in the areas of its electrical assets, wildfire risk is always present. Kansas has enacted legislation that partially mitigates wildfire-related liability exposure for Kansas public utilities by establishing a two-year statute of limitations for wildfire-related claims and imposing a cap on punitive damages awarded under a fire-related claim.
Removed
For example, Evergy Kansas Central decommissioned the Tecumseh Energy Center in 2018 and removed all coal combustion residuals (CCRs) from a surface impoundment in a manner it believed complied with federal law, but the EPA has reviewed and determined that Evergy Kansas Central should have taken additional or alternative actions, even though the facility is closed.
Added
The Evergy Companies' business and capital investment plan calls for significant investment in capital improvements and additions, including the construction or acquisition of additional generation and transmission facilities, interconnection with data centers and modernizing existing infrastructure.
Removed
These changes may include additional unannounced inspections of suspected non-compliant facilities, deployment of 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 included similar agency-wide action in parallel.
Added
Financial Risks: Evergy’s business and capital investment plans depend, in part, on the viability of data centers and large load customers interconnecting with Evergy’s utility subsidiaries. The Evergy Companies are experiencing current and projected load demands that exceed recent experience, creating a business need for new power generating resources and transmission facilities.
Removed
In September 2022, the EPA and the Missouri Department of Natural Resources conducted a CAA environmental justice inspection of the Evergy Companies' Hawthorn Generating Station. No CAA noncompliance issues were found.
Added
Much of this demand is driven by interconnecting with and providing power to data centers and large load customers to serve an increasingly digital economy and to support artificial intelligence. The business and capital investment plans of the Evergy Companies are focused on meeting these current and projected needs.
Removed
The Evergy Companies have multiple power plants located in communities that could be considered a higher priority by the EPA based on existing demographics, and these facilities may be subject to additional monitoring and unannounced inspections in the future. Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits.
Added
If these increased demands for electricity do not occur as projected or are not sustained as projected, for any reason, it could have a material adverse effect on the Evergy Companies' financial results.
Removed
Climate disclosure rules issued by the SEC may increase the Evergy Companies' costs of compliance and adversely impact their business. In 2024, the SEC issued new rules relating to the disclosure of a range of climate-related risks.
Added
The Evergy Companies' strategy also includes a different mix of capital investments than has been pursued in the past, including significant capital investments in natural gas and renewable generation and battery storage capacity.
Removed
The Evergy Companies are currently assessing the rule, but at this time they cannot predict the costs of implementation or any potential adverse impacts resulting from the rule. The rules have been challenged in court and are currently stayed. The Evergy Companies could incur increased costs relating to the assessment and disclosure of climate-related risks.
Added
The Evergy Companies' strategy is expected to result in the modernization and expansion of the generation fleet to support economic expansion in Kansas and Missouri and, as reflected in their IRPs, is expected in the future to be accompanied by the retirement of older coal-fired generation units and/or conversion of coal-fired generation resources to natural gas.
Removed
The Evergy Companies may also face increased litigation risks related to disclosures made pursuant to the rule. In addition, enhanced climate disclosure requirements could accelerate the trend of certain stakeholders and lenders restricting or seeking more stringent conditions with respect to their investments in certain carbon-intensive sectors.
Added
If the Evergy Companies are unable to adjust to reduced electricity demand and increased self-generation and net energy metering, their results of operations, financial position and cash flows could be adversely affected.
Removed
The SPP's rules are primarily designed to provide for maximum cost-effectiveness, but in certain respects the rules also provide preferential treatment for certain resources based on public policy initiatives, such as increasing the deployment of renewable generation.
Added
The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets.
Added
The Evergy Companies' business is capital intensive and includes significant construction projects.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn addition, the Evergy Companies review many third parties with whom the Evergy Companies do business to understand and evaluate potential cybersecurity risks of engaging the third party and work with the third party to appropriately mitigate identified risks, as needed.
Biggest changeIn addition to a bi-annual internal assessment, the NRC inspects Wolf Creek's processes to validate the effectiveness of the program to protect Wolf Creek from cybersecurity threats. 31 Table of Contents In addition, the Evergy Companies review many third parties with whom the Evergy Companies do business to understand and evaluate potential cybersecurity risks of engaging the third party and work with the third party to appropriately mitigate identified risks, as needed.
Evergy's Board of Directors (Evergy Board) has assigned primary oversight of enterprise risk management practices to the Audit Committee of the Evergy Board. At least annually, the Audit Committee reviews and discusses with management the Evergy Companies' enterprise risk management policies, processes, and frameworks, including conclusions reached regarding risk assessment and risk management.
Evergy's Board has assigned primary oversight of enterprise risk management practices to the Audit Committee of the Evergy Board. At least annually, the Audit Committee reviews and discusses with management the Evergy Companies' enterprise risk management policies, processes, and frameworks, including conclusions reached regarding risk assessment and risk management.
Among other measures, certain third parties are required to have processes in place to mitigate risk that data would be compromised, to become aware of cybersecurity incidents and/or to promptly notify the Evergy Companies of any cybersecurity incidents.
Among other measures, certain third parties are required to have processes in place to mitigate risk that data would be compromised, to become aware of cybersecurity incidents and to promptly notify the Evergy Companies of any cybersecurity incidents.
However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent through the use of such tools as AI, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future. See Item 1A. Risk Factors – Operational Risks for additional information. 31 Table of Contents
However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent through the use of such tools as AI, there can be no assurance that such incidents will not have a material adverse effect on the Evergy Companies in the future. See Item 1A. Risk Factors – Operational Risks for additional information. 32 Table of Contents
At each Operations Committee meeting, the CTO discusses the Evergy Companies' cybersecurity metrics and scorecard performance; global, industry and Evergy-specific cybersecurity news; third-party assessments of the Evergy Companies' cybersecurity program; and industry benchmarking results. The Operations Committee meets regularly throughout the year and may meet more frequently or otherwise be informed of cybersecurity risk and incident information as needed.
At each Operations Committee meeting, the CTO presents the Evergy Companies' cybersecurity metrics and scorecard performance; global, industry and Evergy-specific cybersecurity news; third-party assessments of the Evergy Companies' cybersecurity program; and industry benchmarking results. The Operations Committee meets regularly throughout the year and may meet more frequently or otherwise be informed of cybersecurity risk and incident information as needed.
If warranted, the incident response plan may trigger the activation of the Crisis Management Team, a subset of officers who lead corporate functions and would collectively perform impact assessment and provide 30 Table of Contents decision-making guidance as a component of the Crisis Management Plan within the Evergy Companies' business continuity and disaster recovery plans.
If warranted, the incident response plan may trigger the activation of the Crisis Management Team, a subset of officers who lead corporate functions and would collectively perform impact assessment and provide decision-making guidance as a component of the Crisis Management Plan within the Evergy Companies' business continuity and disaster recovery plans.
The Senior Vice President, Chief Technology Officer (CTO) and Vice President, Chief Nuclear Officer (CNO), have overall accountability for the assessment, identification and management of 29 Table of Contents cybersecurity risks on behalf of the Evergy Companies and Wolf Creek, respectively, subject to review by the Evergy Board and its committees.
The Senior Vice President, Chief Technology Officer (CTO) and Senior Vice President, Chief Nuclear Officer (CNO), have overall accountability for the assessment, identification and management of cybersecurity risks on behalf of the Evergy Companies and Wolf Creek, respectively, subject to review by the Evergy Board and its committees.
On at least an annual basis, cross-functional teams and executive management participate in a simulated cybersecurity incident exercise and the Evergy Companies regularly simulate cybersecurity incidents, including phishing attacks, to assess organizational readiness. In addition to a bi-annual internal assessment, the NRC inspects Wolf Creek's processes to validate the effectiveness of the program to protect Wolf Creek from cybersecurity threats.
On at least an annual basis, cross-functional teams and executive management participate in a simulated cybersecurity incident exercise and the Evergy Companies regularly simulate cybersecurity incidents, including phishing attacks, to assess organizational readiness.
See Part I, Item 1, Business – Information about Evergy’s Executive Officers for a description of the CTO's experience. The CNO has management responsibility of Wolf Creek where he has served in executive capacities since joining Wolf Creek in 2014.
See Part I, Item 1, Business – Information about Evergy’s Executive Officers for a description of the CTO's and CNO's experience. 30 Table of Contents The Evergy Board has assigned primary oversight of cybersecurity risk to the Operations Committee of the Evergy Board.
Removed
Prior to joining Wolf Creek, he served as vice president of engineering and site vice president of another nuclear power plant from 2009 until 2014. The Evergy Board has assigned primary oversight of cybersecurity risk to the Operations Committee of the Evergy Board.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocation Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Gas and Oil (continued): Osawatomie Kansas Combustion Turbines 1 2003 Natural Gas — 77 — 77 — 77 Ralph Green Missouri Combustion Turbines 3 1981 Natural Gas — — 69 69 — 69 Nevada Missouri Combustion Turbines 1 1974 Oil — — 16 16 — 16 Lake Road Missouri Combustion Turbines 1 - 3 1951, 1958 & 1962 Natural Gas — — 49 49 — 49 5 - 7 1974, 1989 & 1990 Oil — — 88 88 — 88 Steam Turbines 4 1967 Natural Gas — — 95 95 — 95 Northeast Missouri Combustion Turbines 11 - 18 1972 - 1977 Oil — 394 — 394 — 394 South Harper Missouri Combustion Turbines 1 - 3 2005 Natural Gas — — 321 321 — 321 Greenwood Energy Center Missouri Combustion Turbines 1 - 4 1975 - 1979 Natural Gas — — 250 250 — 250 Crossroads Energy Center Mississippi Combustion Turbines 1 - 4 2002 Natural Gas — — 302 302 — 302 Dogwood Energy Center Missouri Combined Cycle 1 - 3 (h) 2002 Natural Gas — — 145 145 — 145 Total Gas and Oil 1,690 1,185 1,335 4,210 — 4,210 Total 6,078 4,152 1,806 12,036 3,754 15,790 (a) Capability (except for wind generating facilities) represents estimated 2025 net generating capacity.
Biggest changeLocation Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Gas and Oil (continued): Osawatomie Kansas Combustion Turbines 1 2003 Natural Gas — 77 — 77 — 77 Ralph Green Missouri Combustion Turbines 3 1981 Natural Gas — — 66 66 — 66 Nevada Missouri Combustion Turbines 1 1974 Oil — — 16 16 — 16 Lake Road Missouri Combustion Turbines 1 - 3 1951, 1958 & 1962 Natural Gas — — 49 49 — 49 5 - 7 1974, 1989 & 1990 Oil — — 106 106 — 106 Steam Turbines 4 1967 Natural Gas — — 95 95 — 95 Northeast Missouri Combustion Turbines 11 - 18 1972 - 1977 Oil — 394 — 394 — 394 South Harper Missouri Combustion Turbines 1 - 3 2005 Natural Gas — — 321 321 — 321 Greenwood Energy Center Missouri Combustion Turbines 1 - 4 1975 - 1979 Natural Gas — — 250 250 — 250 Crossroads Energy Center Mississippi Combustion Turbines 1 - 4 2002 Natural Gas — — 300 300 — 300 Dogwood Energy Center Missouri Combined Cycle 1 - 3 (h) 2002 Natural Gas — — 145 145 — 145 Total Gas and Oil 1,696 1,185 1,348 4,229 — 4,229 Total 6,087 4,152 1,819 12,058 3,754 15,812 (a) Capability (except for wind generating facilities) represents estimated 2026 net generating capacity.
Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Renewable Generation: Central Plains Kansas 2009 Wind 99 — — 99 — 99 Flat Ridge Kansas 2009 Wind 50 — — 50 44 (b) 94 Flat Ridge 3 Kansas 2021 Wind — — — — 128 (b) 128 Western Plains Kansas 2017 Wind 281 — — 281 — 281 Meridian Way Kansas 2008 Wind — — — — 96 (b) 96 Ironwood Kansas 2012 Wind — — — — 168 (b) 168 Post Rock Kansas 2012 Wind — — — — 201 (b) 201 Cedar Bluff Kansas 2015 Wind — — — — 199 (b) 199 Kay Wind Oklahoma 2015 Wind — — — — 200 (b) 200 Soldier Creek Kansas 2020 Wind — — — — 300 (b) 300 Ninnescah Kansas 2016 Wind — — — — 208 (b) 208 Kingman 1 Kansas 2016 Wind — — — — 37 (b) 37 Kingman 2 Kansas 2016 Wind — — — — 103 (b) 103 Rolling Meadows Kansas 2010 Landfill Gas — — — — 6 (b) 6 Hutchinson Solar Kansas 2017 Solar — — — — 1 (b) 1 Ponderosa Oklahoma 2020 Wind — — — — 178 (c) 178 Cimarron II Kansas 2012 Wind — — — — 131 (d) 131 Cimarron Bend III Kansas 2020 Wind — — — — 150 (e) 150 Spearville 1 Kansas 2006 Wind — 101 — 101 — 101 Spearville 2 Kansas 2010 Wind — 48 — 48 — 48 Spearville 3 Kansas 2012 Wind — — — — 101 (d) 101 Gray County Kansas 2001 Wind — — — — 110 (f) 110 Ensign Kansas 2012 Wind — — — — 99 (f) 99 Waverly Kansas 2016 Wind — — — — 200 (d) 200 Slate Creek Kansas 2015 Wind — — — — 150 (d) 150 Rock Creek Missouri 2017 Wind — — — — 300 (g) 300 Osborn Missouri 2016 Wind — — — — 201 (g) 201 Pratt Kansas 2018 Wind — — — — 243 (g) 243 Greenwood Solar Missouri 2016 Solar — — 3 3 — 3 Prairie Queen Kansas 2019 Wind — — — — 200 (g) 200 St Joseph Landfill Missouri 2012 Landfill Gas — — 2 2 — 2 Persimmon Creek Oklahoma 2018 Wind 199 — — 199 — 199 Hawthorn Solar Missouri 2023 Solar — 7 3 10 — 10 Total Renewable Generation: 629 156 8 793 3,754 4,547 32 Table of Contents Unit Capability (MW) By Owner (a) Station Unit No.
Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Renewable Generation: Central Plains Kansas 2009 Wind 99 — — 99 — 99 Flat Ridge Kansas 2009 Wind 50 — — 50 44 (b) 94 Flat Ridge 3 Kansas 2021 Wind — — — — 128 (b) 128 Western Plains Kansas 2017 Wind 281 — — 281 — 281 Meridian Way Kansas 2008 Wind — — — — 96 (b) 96 Ironwood Kansas 2012 Wind — — — — 168 (b) 168 Post Rock Kansas 2012 Wind — — — — 201 (b) 201 Cedar Bluff Kansas 2015 Wind — — — — 199 (b) 199 Kay Wind Oklahoma 2015 Wind — — — — 200 (b) 200 Soldier Creek Kansas 2020 Wind — — — — 300 (b) 300 Ninnescah Kansas 2016 Wind — — — — 208 (b) 208 Kingman 1 Kansas 2016 Wind — — — — 37 (b) 37 Kingman 2 Kansas 2016 Wind — — — — 103 (b) 103 Rolling Meadows Kansas 2010 Landfill Gas — — — — 6 (b) 6 Hutchinson Solar Kansas 2017 Solar — — — — 1 (b) 1 Ponderosa Oklahoma 2020 Wind — — — — 178 (c) 178 Cimarron II Kansas 2012 Wind — — — — 131 (d) 131 Cimarron Bend III Kansas 2020 Wind — — — — 150 (e) 150 Spearville 1 Kansas 2006 Wind — 101 — 101 — 101 Spearville 2 Kansas 2010 Wind — 48 — 48 — 48 Spearville 3 Kansas 2012 Wind — — — — 101 (d) 101 Gray County Kansas 2001 Wind — — — — 110 (f) 110 Ensign Kansas 2012 Wind — — — — 99 (f) 99 Waverly Kansas 2016 Wind — — — — 200 (d) 200 Slate Creek Kansas 2015 Wind — — — — 150 (d) 150 Rock Creek Missouri 2017 Wind — — — — 300 (g) 300 Osborn Missouri 2016 Wind — — — — 201 (g) 201 Pratt Kansas 2018 Wind — — — — 243 (g) 243 Greenwood Solar Missouri 2016 Solar — — 3 3 — 3 Prairie Queen Kansas 2019 Wind — — — — 200 (g) 200 St Joseph Landfill Missouri 2012 Landfill Gas — — 2 2 — 2 Persimmon Creek Oklahoma 2018 Wind 199 — — 199 — 199 Hawthorn Solar Missouri 2023 Solar — 7 3 10 — 10 Total Renewable Generation: 629 156 8 793 3,754 4,547 33 Table of Contents Unit Capability (MW) By Owner (a) Station Unit No.
(j) 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. 34 Table of Contents Transmission and Distribution Resources Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers.
(j) 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. 35 Table of Contents Transmission and Distribution Resources Evergy's electric transmission system interconnects with systems of other utilities for reliability and to permit wholesale transactions with other electricity suppliers.
Evergy has approximately 10,100 circuit miles of transmission lines, 44,600 circuit miles of overhead distribution lines and 16,300 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs.
Evergy has approximately 10,200 circuit miles of transmission lines, 44,600 circuit miles of overhead distribution lines and 16,700 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service territory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs.
Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Nuclear: Wolf Creek 1 (h) Kansas 1985 Uranium 553 553 — 1,106 — 1,106 Total Nuclear: 553 553 — 1,106 — 1,106 Coal: Jeffrey Energy Center Kansas Steam Turbines 1 - 3 (h) 1978, 1980 &1983 Coal 2,008 — 175 2,183 — 2,183 Lawrence Energy Center Kansas Steam Turbines 4 & 5 1960, 1971 Coal 485 — — 485 — 485 La Cygne Kansas Steam Turbines 1 & 2 (h)(i) 1973, 1977 Coal 713 713 — 1,426 — 1,426 Iatan Missouri Steam Turbines 1 & 2 (h) 1980, 2010 Coal — 983 288 1,271 — 1,271 Hawthorn Missouri Steam Turbines 5 (j) 1969 Coal — 562 — 562 — 562 Total Coal: 3,206 2,258 463 5,927 — 5,927 Gas and Oil: Emporia Energy Center Kansas Combustion Turbines 1 - 7 2008 - 2009 Natural Gas 654 — — 654 — 654 Gordon Evans Energy Center Kansas Combustion Turbines 1 - 3 2000 - 2001 Natural Gas 300 — — 300 — 300 Hutchinson Energy Center Kansas Combustion Turbines 1 - 3 1974 Natural Gas 169 — — 169 — 169 4 1975 Oil 70 — — 70 — 70 Spring Creek Energy Center Oklahoma Combustion Turbines 1 - 4 2001 Natural Gas 288 — — 288 — 288 State Line Missouri Combined Cycle 1 - 3 (h) 2001 Natural Gas 209 — — 209 — 209 Hawthorn Missouri Combined Cycle 6 & 9 2000 Natural Gas — 242 — 242 — 242 Combustion Turbines 7 & 8 2000 Natural Gas — 157 — 157 — 157 West Gardner Kansas Combustion Turbines 1 - 4 2003 Natural Gas — 315 — 315 — 315 33 Table of Contents Unit Capability (MW) By Owner (a) Station Unit No.
Location Year Completed Fuel Evergy Kansas Central Evergy Metro Evergy Missouri West Total Company Generation Renewable Purchased Power Total Generation and Renewable Purchased Power Nuclear: Wolf Creek 1 (h) Kansas 1985 Uranium 553 553 — 1,106 — 1,106 Total Nuclear: 553 553 — 1,106 — 1,106 Coal: Jeffrey Energy Center Kansas Steam Turbines 1 - 3 (h) 1978, 1980 &1983 Coal 2,008 — 175 2,183 — 2,183 Lawrence Energy Center Kansas Steam Turbines 4 & 5 1960, 1971 Coal 488 — — 488 — 488 La Cygne Kansas Steam Turbines 1 & 2 (h)(i) 1973, 1977 Coal 713 713 — 1,426 — 1,426 Iatan Missouri Steam Turbines 1 & 2 (h) 1980, 2010 Coal — 983 288 1,271 — 1,271 Hawthorn Missouri Steam Turbines 5 (j) 1969 Coal — 562 — 562 — 562 Total Coal: 3,209 2,258 463 5,930 — 5,930 Gas and Oil: Emporia Energy Center Kansas Combustion Turbines 1 - 7 2008 - 2009 Natural Gas 654 — — 654 — 654 Gordon Evans Energy Center Kansas Combustion Turbines 1 - 3 2000 - 2001 Natural Gas 300 — — 300 — 300 Hutchinson Energy Center Kansas Combustion Turbines 1 - 3 1974 Natural Gas 167 — — 167 — 167 4 1975 Oil 70 — — 70 — 70 Spring Creek Energy Center Oklahoma Combustion Turbines 1 - 4 2001 Natural Gas 294 — — 294 — 294 State Line Missouri Combined Cycle 1 - 3 (h) 2001 Natural Gas 211 — — 211 — 211 Hawthorn Missouri Combined Cycle 6 & 9 2000 Natural Gas — 242 — 242 — 242 Combustion Turbines 7 & 8 2000 Natural Gas — 157 — 157 — 157 West Gardner Kansas Combustion Turbines 1 - 4 2003 Natural Gas — 315 — 315 — 315 34 Table of Contents Unit Capability (MW) By Owner (a) Station Unit No.
Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,529 MW of accredited generating capacity pursuant to SPP reliability standards. (b) Evergy Kansas Central renewable power purchase agreement. (c) Evergy Kansas Central and Evergy Metro renewable power purchase agreement.
Capability for wind generating facilities represents the nameplate capacity. Due to the intermittent nature of wind generation, these facilities are associated with a total of 1,515 MWs of accredited generating capacity pursuant to SPP reliability standards. (b) Evergy Kansas Central renewable power purchase agreement. (c) Evergy Kansas Central and Evergy Metro renewable power purchase agreement.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses. For information regarding material lawsuits and proceedings, see Notes 4 and 15 to the consolidated financial statements. Such information is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 35 Table of Contents PART II
Biggest changeITEM 3. LEGAL PROCEEDINGS The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses. For information regarding material lawsuits and proceedings, see Notes 4 and 15 to the consolidated financial statements. Such information is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 36 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer 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 42 $61.64 — — November 1 - 30 — — — — December 1 - 31 6,051 $61.60 — — Total 6,093 $61.60 — — (a) Represents shares Evergy purchased for withholding taxes related to the vesting of restricted stock or restricted stock units.
Biggest changeIssuer 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 6,291 $76.35 — — November 1 - 30 — — — — December 1 - 31 2,520 $75.41 — — Total 8,811 $76.08 — — (a) Represents shares Evergy purchased for withholding taxes related to the vesting of restricted stock or restricted stock units.
Purchases of Equity Securities The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended December 31, 2024.
Purchases of Equity Securities The following table provides information regarding purchases by Evergy of its equity securities that are registered pursuant to Section 12 of the Exchange Act during the three months ended December 31, 2025.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES EVERGY, INC. Evergy's common stock is listed on the Nasdaq Stock Market LLC under the symbol "EVRG." At February 19, 2025, Evergy's common stock was held by 15,388 shareholders of record.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES EVERGY, INC. Evergy's common stock is listed on the Nasdaq Stock Market LLC under the symbol "EVRG." At February 11, 2026, Evergy's common stock was held by 14,484 shareholders of record.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

131 edited+46 added−29 removed51 unchanged
Biggest changeEVERGY SIGNIFICANT BALANCE SHEET CHANGES (December 31, 2024 compared to December 31, 2023) • Evergy's accounts receivable pledged as collateral increased $59.0 million primarily due to the February 2024 amendment to the receivable sale facilities increasing the aggregate outstanding principal amount to be borrowed at any time. • Evergy's fuel inventory and supplies increased $91.2 million primarily driven by an $84.3 million increase in materials and supplies primarily driven by higher costs and higher overall levels of inventory to mitigate longer supply chain lead times and supply constraints due to industry wide infrastructure investments. • Evergy's regulatory assets - current decreased $111.2 million primarily driven by a $77.0 million decrease related to Evergy Missouri West's fuel recovery mechanism recoveries and a $56.1 million decrease due to recoveries of deferred fuel and purchased power costs at Evergy Kansas Central related to the February 2021 winter weather event. • Evergy's nuclear decommissioning trusts increased $113.4 million primarily driven by realized and unrealized gains on investments at Evergy Kansas Central's and Evergy Metro's nuclear decommissioning trusts. • Evergy's current maturities of long-term debt decreased $148.3 million primarily due to the repayment of Evergy's $800.0 million of 2.45% Senior Notes in September 2024, partially offset by the reclassifications from long-term to current of Evergy Metro's $350.0 million of 3.65% Senior Notes in August 2024, Evergy Kansas Central's $250.0 million of 3.25% First Mortgage Bonds (FMBs) in December 2024 and Evergy Missouri West's $36.0 million of 3.49% Senior Notes in August 2024. • Evergy's commercial paper increased $255.8 million primarily due to a $566.9 million increase at Evergy Kansas Central due to borrowings for capital expenditures and for general corporate purposes, partially offset by a $264.6 million decrease at Evergy Metro due to the repayment of commercial paper with the proceeds from its issuance of $300.0 million of 5.40% Mortgage Bonds in April 2024. • Evergy's collateralized note payable increased $59.0 million primarily due to the February 2024 amendment to the receivable sale facilities increasing the aggregate outstanding principal amount to be borrowed at any time. 50 Table of Contents • Evergy's long-term debt, net increased $755.9 million primarily driven by Evergy's issuance of $500.0 million of 6.65% Junior Subordinated Notes in December 2024, Evergy Missouri West Storm Funding I, LLC's (Evergy Missouri West Storm Funding) issuance of $331.1 million of 5.10% Securitized Utility Tariff Bonds in February 2024, Evergy Missouri West's issuance of $300.0 million of 5.65% FMBs in May 2024 and Evergy Metro's issuance of $300.0 million of 5.40% Mortgage Bonds in April 2024; partially offset by the reclassification from long-term to current of Evergy Metro's $350.0 million of 3.65% Senior Notes maturing in August 2025, Evergy Kansas Central's $250.0 million of 3.25% FMBs maturing in December 2025 and Evergy Missouri West's $36.0 million of 3.49% Senior Notes in August 2024.
Biggest changeInterest Expense Evergy's interest expense increased $53.2 million in 2025, compared to 2024, primarily driven by: • a $78.3 million increase due to issuances of long-term debt; and • a $4.9 million increase due to lower debt AFUDC driven by lower short-term interest rates in 2025; partially offset by • a $19.4 million decrease in interest expense due to the repayment of long-term debt; and • a $13.5 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to Evergy Kansas Central and Evergy Metro electing into Kansas PISA beginning July 2024. 50 Table of Contents EVERGY SIGNIFICANT BALANCE SHEET CHANGES (December 31, 2025 compared to December 31, 2024) • Evergy's regulatory assets - current increased $36.5 million primarily driven by a $41.2 million increase related to Evergy Missouri West's fuel recovery mechanism under-collections. • Evergy's nuclear decommissioning trusts increased $137.0 million primarily driven by realized and unrealized gains on investments at Evergy Kansas Central's and Evergy Metro's nuclear decommissioning trusts. • Evergy's current maturities of long-term debt decreased $284.7 million primarily due to the repayments of Evergy Metro's $350.0 million of 3.65% Senior Notes in August 2025, Evergy Kansas Central's $250.0 million of 3.25% First Mortgage Bonds (FMBs) in December 2025 and Evergy Missouri West's $36.0 million of 3.49% Senior Notes in August 2025, partially offset by the reclassifications from long-term to current of Evergy Kansas Central's $350.0 million of 2.55% FMBs that mature in July 2026. • Evergy's commercial paper increased $186.4 million driven by increases of $424.8 million at Evergy, Inc., $150.4 million at Evergy Missouri West and $86.6 million at Evergy Metro, partially offset by a $475.4 million decrease at Evergy Kansas Central.
The trajectory and timing of achieving emissions reductions relative to 2005 levels and Evergy's long-term emissions reductions goal are expected to be dependent on enabling technology developments, trends in total total demand for electricity, the reliability of the power grid, availability of transmission capacity and supportive energy policies and regulations, among other external factors.
The trajectory and timing of achieving emissions reductions relative to 2005 levels and Evergy's long-term emissions reductions goal are expected to be dependent on enabling technology developments, trends in total demand for electricity, the reliability of the power grid, availability of transmission capacity and supportive energy policies and regulations, among other external factors.
The Evergy Companies' taxes other than income taxes, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates.
The Evergy Companies' taxes other than income tax, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates.
See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
See "Executive Summary - Non-GAAP Measures" for additional information regarding gross margin (GAAP) and utility gross margin (non-GAAP).
However, the tax benefits, if any, are expected to be returned to customers over time as a reduction to revenue in future regulatory proceedings. See Note 20 to the consolidated financial statements for more information regarding the nuclear PTC.
The tax benefits, if any, are expected to be returned to customers over time as a reduction to revenue in future regulatory proceedings. See Note 20 to the consolidated financial statements for more information regarding the nuclear PTC.
EVERGY METRO, INC. MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K.
Under the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds.
Under the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as amended and supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds.
Under the First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022 (Evergy Missouri West Mortgage Indenture), additional Evergy Missouri West mortgage bonds may be issued on the basis of 75% of property additions or retired bonds.
Under the First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022, as supplemented (Evergy Missouri West Mortgage Indenture), additional Evergy Missouri West mortgage bonds may be issued on the basis of 75% of property additions or retired bonds.
In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on 54 Table of Contents or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance.
In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance.
The impact on 2025 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense is deferred to a regulatory asset or liability for future ratemaking treatment. See Note 9 to the consolidated financial statements for additional information regarding the accounting for pensions.
The impact on 2026 pension expense in the table above reflects the impact on GAAP pension costs. Under the Evergy Companies' rate agreements, any increase or decrease in GAAP pension expense is deferred to a regulatory asset or liability for future ratemaking treatment. See Note 9 to the consolidated financial statements for additional information regarding the accounting for pensions.
Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from the merger that created Evergy was conducted as of May 1, 2024.
Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from the merger that created Evergy was conducted as of May 1, 2025.
See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2025. The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels.
See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in February 2026. The Evergy Companies also have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels.
As of December 31, 2024, Evergy has other insignificant commitments as well as other insignificant long-term liabilities recorded on its consolidated balance sheet, which are not included in the table above. Common Stock Dividends The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board.
As of December 31, 2025, Evergy has other insignificant commitments as well as other insignificant long-term liabilities recorded on its consolidated balance sheet, which are not included in the table above. Common Stock Dividends The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board.
None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself. The following MD&A generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself. The following MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
Evergy will remain focused on consistently delivering on its affordability, reliability and sustainability objectives and delivering competitive long-term returns to shareholders, including growth in earnings per share and targeting a 60% - 70% dividend payout ratio.
Evergy will remain focused on consistently delivering on its affordability, reliability and sustainability objectives and delivering competitive long-term returns to shareholders, including growth in earnings per share and targeting a 50%-60% dividend payout ratio.
The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2024, the Evergy Companies were in compliance with these covenants.
The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2025, the Evergy Companies were in compliance with these covenants.
The following table summarizes the regulatory short-term and long-term debt financing authorizations for Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West and the remaining amount available under these authorizations as of December 31, 2024.
The following table summarizes the regulatory short-term and long-term debt financing authorizations for Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West and the remaining amount available under these authorizations as of December 31, 2025.
Strategy Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on enabling economic development across all of its service territories to strengthen the communities it serves and meet customer electric demand growth through the continued evolution of its generation, transmission and distribution systems.
Strategy Evergy expects to continue operating its integrated utilities within the currently existing regulatory frameworks and is focused on enabling economic development across all of its service territories to strengthen the communities it serves and meet existing and future customer electricity demand growth through the continued evolution of its generation, transmission and distribution systems.
Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board. 42 Table of Contents Pensions Evergy incurs significant costs in providing non-contributory defined pension benefits.
Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board. Pensions Evergy incurs significant costs in providing non-contributory defined pension benefits.
The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70%.
The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opportunities and debt covenants. Evergy targets a long-term dividend payout ratio of 50%-60% .
See "Transitioning Evergy's Generation Fleet" in Part I, Item 1. Business, for additional information; and • accessing debt and equity capital markets to support the Evergy Companies' capital investment plans. See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A. Risk Factors, for additional information.
See "Modernizing and Expanding Evergy's Generation Fleet" in Part I, Item 1. Business, for additional information; and • accessing debt and equity capital markets to support the Evergy Companies' capital investment plans. See "Cautionary Statements Regarding Certain Forward-Looking Information" and Part I, Item 1A. Risk Factors, for additional information.
Management believes that utility gross margin (non-GAAP) provides a meaningful basis for evaluating the Evergy Companies' 40 Table of Contents 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.
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.
Additional contributions to the plans are expected beyond 2029 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2025 are estimates based on information available in determining the amount for 2025.
Additional contributions to the plans are expected beyond 2030 in amounts at least sufficient to meet the greater of Employee Retirement Income Security Act of 1974, as amended (ERISA) or regulatory funding requirements; however, these amounts have not yet been determined. Amounts for years after 2026 are estimates based on information available in determining the amount for 2026.
The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects.
The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with 52 Table of Contents respect to results of operations, financial position and future prospects.
(e) Reflects costs incurred associated with the realignment of the executive operations corporate structure that are included in operating and maintenance expense and taxes other than income tax on the consolidated statements of comprehensive income. (f) Reflects an income tax effect calculated at a statutory rate of approximately 22%, with the exception of certain non-deductible items.
(c) Reflects costs incurred associated with the realignment of the executive operations corporate structure that are included in operating and maintenance expense and taxes other than income tax on the consolidated statements of comprehensive income. (d) Reflects an income tax effect calculated at a statutory rate of approximately 22%, with the exception of certain non-deductible items.
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 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, 2023 and are incorporated herein by reference. 36 Table of Contents EVERGY, INC.
Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 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, 2024 and are incorporated herein by reference. 37 Table of Contents EVERGY, INC.
Impact on Impact on Projected 2025 Change in Benefit Pension Actuarial assumption Assumption Obligation Expense (millions) Discount rate 0.5 % increase $ (95.1) $ (10.4) Rate of return on plan assets 0.5 % increase N/A (6.5) Rate of compensation 0.5 % increase 22.2 4.8 Discount rate 0.5 % decrease 105.5 11.5 Rate of return on plan assets 0.5 % decrease N/A 6.5 Rate of compensation 0.5 % decrease (20.9) (4.5) Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC.
Impact on Impact on Projected 2026 Change in Benefit Pension Actuarial assumption Assumption Obligation Expense (millions) Discount rate 0.5 % increase $ (95.6) $ (10.0) Rate of return on plan assets 0.5 % increase N/A (6.7) Rate of compensation 0.5 % increase 22.2 4.7 Discount rate 0.5 % decrease 105.9 11.0 Rate of return on plan assets 0.5 % decrease N/A 6.7 Rate of compensation 0.5 % decrease (20.9) (4.5) Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC.
See Note 4 to the consolidated financial statements for information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and Certificate of Convenience and Necessity (CCN) for their investments in these natural gas plants.
See "Applications for Predetermination" and "Requests for Certificate of Convenience and Necessity" in Note 4 to the consolidated financial statements for additional information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and a CCN for their investments in these natural gas plants.
Evergy is required to estimate the amount of taxes payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns.
Evergy is required to estimate the amount of taxes 46 Table of Contents payable or refundable for the current year and the deferred tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns.
Long-term debt includes current maturities and $268.4 million of tax-exempt bonds with interest rates that are determined each week. The bondholders of these tax-exempt bonds are permitted to tender the tax-exempt bonds to the issuer for purchase and, if tendered, the issuer is obligated to purchase any such bonds that cannot be remarketed to other investors.
Long-term debt includes current maturities and $192.9 million of tax-exempt bonds with interest rates that are determined each week. The bondholders of these tax-exempt bonds are permitted to tender the tax-exempt bonds to the issuer for purchase and, if tendered, the issuer is obligated to purchase any such bonds that cannot be remarketed to other investors.
The Evergy Companies expect that cash generated from operations, proceeds from the issuance of long-term debt, and proceeds from the sale of equity and equity-like securities will be adequate to meet anticipated cash needs over the next five years.
The Evergy Companies expect that cash generated from operations, proceeds from the issuance of long-term debt, equity and hybrid securities will be adequate to meet anticipated cash needs over the next five years.
Evergy initially recorded AROs at fair value for the estimated cost to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items.
Evergy initially records AROs at fair value for the estimated costs to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items.
Variable rate interest obligations are based on rates as of December 31, 2024. Evergy expects to contribute $65.3 million to the pension and other post-retirement plans in 2025, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro.
Variable rate interest obligations are based on rates as of December 31, 2025. Evergy expects to contribute $111.3 million to the pension and other post-retirement plans in 2026, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro.
ARO refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence.
AROs refer to legal obligations to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occurrence.
As of December 31, 2024 and 2023, Evergy's capital structure, excluding short-term debt, was as follows: December 31 2024 2023 Common equity 44% 45% Long-term debt, including VIEs 56% 55% Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization.
As of December 31, 2025 and 2024, Evergy's capital structure, excluding short-term debt, was as follows: December 31 2025 2024 Common equity 43% 44% Long-term debt, including VIEs 57% 56% Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization.
Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for net operating losses, capital losses and tax credit carryforwards.
Deferred investment tax credits are amortized ratably over the life of the related property. Deferred tax assets are also recorded for NOLs, capital losses and tax credit carryforwards.
Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the 44 Table of Contents expected outcome of the aforementioned events.
Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events.
Evergy's continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules.
Evergy's continued ability to meet the criteria for recording regulatory 45 Table of Contents assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules.
These tax-exempt bonds are classified as long-term debt due to the issuer's intent and ability to utilize such borrowings as long-term financing. Long-term debt principal excludes $112.7 million of unamortized net discounts and debt issuance costs and a $81.7 million fair value adjustment recorded in connection with purchase accounting for the merger that created Evergy in 2018.
These tax-exempt bonds are classified as long-term debt due to the issuer's intent and ability to utilize such borrowings as long-term financing. Long-term debt principal excludes $109.6 million of unamortized net discounts and debt issuance costs and a $76.1 million fair value adjustment recorded in connection with purchase accounting for the merger that created Evergy in 2018.
Actual amounts for years after 2025 could be significantly different than the estimated amounts in the table above. 56 Table of Contents Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.
Actual amounts for years after 2026 could be significantly different than the estimated amounts in the table above. 56 Table of Contents Fuel commitments consist of commitments for nuclear fuel and coal in addition to coal and natural gas transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements, capacity purchases and firm transmission service.
Evergy Kansas Central's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend. New rates are expected to be effective in September 2025.
Evergy Metro's request reflected a return on equity of 10.5% (with a capital structure composed of 52% equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend. New rates are expected to be effective in January 2027.
Evergy's cash flows from operations were $1,983.7 million, $1,980.2 million and $1,801.9 million in 2024, 2023 and 2022, respectively. Short-Term Borrowings As of December 31, 2024, Evergy had $1.3 billion of available borrowing capacity under its master credit facility.
Evergy's cash flows from operations were $2,045.2 million, $1,983.7 million and $1,980.2 million in 2025, 2024 and 2023, respectively. Short-Term Borrowings As of December 31, 2025, Evergy had $1.1 billion of available borrowing capacity under its master credit facility.
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. 51 Table of Contents Long-Term Debt, Equity and Equity-like Issuances From time to time, Evergy issues long-term debt, equity and equity-like securities to repay short-term debt, refinance maturing long-term debt and finance growth.
Evergy believes that its existing cash on hand and available borrowing capacity under its master credit facility provide sufficient liquidity for its existing capital requirements. Long-Term Debt, Equity and Hybrid Security Issuances From time to time, Evergy issues long-term debt, equity and hybrid securities to repay short-term debt, refinance maturing long-term debt and finance growth.
Type of Authorization Commission Expiration Date Authorization Amount Available Under Authorization Evergy Kansas Central (in millions) Short-Term Debt FERC December 2026 $ 1,250.0 $ 452.7 Evergy Kansas South Short-Term Debt FERC December 2026 $ 1,000.0 $ 935.3 Evergy Metro Short-Term Debt FERC December 2026 $ 1,250.0 $ 1,091.3 Evergy Missouri West Short-Term Debt FERC December 2026 $ 750.0 $ 573.8 Long-Term Debt FERC December 2026 $ 600.0 $ 600.0 In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity.
Type of Authorization Commission Expiration Date Authorization Amount Available Under Authorization Evergy Kansas Central (in millions) Short-Term Debt FERC December 2026 $ 1,250.0 $ 928.1 Evergy Kansas South Short-Term Debt FERC December 2026 $ 1,000.0 $ 921.2 Evergy Metro Short-Term Debt FERC December 2026 $ 1,250.0 $ 1,004.7 Evergy Missouri West Short-Term Debt FERC December 2026 $ 750.0 $ 423.4 Long-Term Debt FERC December 2026 $ 600.0 $ 300.0 In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West mortgages each contain provisions restricting the amount of FMBs or mortgage bonds, as applicable, that can be issued by each entity.
The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate. In 2024, Evergy's pension expense was $33.5 million under GAAP and $57.6 million for ratemaking.
The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate. In 2025, Evergy's pension expense was $42.5 million under GAAP and $54.3 million for ratemaking.
Mild weather reduces customer demand. Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service.
Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service.
As of December 31, 2024, approximately $2,878.6 million principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
As of December 31, 2025, approximately $2.9 billion principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding. 47 Table of Contents Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal.
A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries. 52 Table of Contents As of February 26, 2025, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table.
A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries.
These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $229.3 million and $246.8 million in 2024 and 2023, respectively.
These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $247.6 million and $229.3 million in 2025 and 2024, respectively.
These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $81.0 million and $84.6 million in 2024 and 2023, respectively.
These amounts exclude general and administrative expenses not directly attributable to revenue-producing activities of $96.2 million and $81.0 million in 2025 and 2024, respectively.
As of December 31, 2024, approximately $2,137.2 million principal amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage. Cash and Cash Equivalents As of December 31, 2024, Evergy had approximately $22.0 million of cash and cash equivalents on hand.
As of December 31, 2025, approximately $2.1 billion principal amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage. Cash and Cash Equivalents As of December 31, 2025, Evergy had approximately $19.8 million of cash and cash equivalents on hand.
The first plant is expected to begin operations by summer of 2029 and the second plant is expected to begin operations by summer of 2030. Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri. The plant is expected to begin operations in 2030.
The first plant, a combined cycle gas turbine (CCGT) facility located in Sumner County, is expected to begin operations by spring of 2029 and the second plant, a CCGT facility located in Reno County, is expected to begin operations by spring of 2030. Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri.
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.
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 of December 31, 2024, approximately $5,552.7 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
As of December 31, 2025, approximately $5.6 billion principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers.
As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand.
As of December 31, 2024, $420.5 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
As of December 31, 2025, $2.3 billion principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings.
Evergy Missouri West 2024 Rate Case Proceeding In February 2024, Evergy Missouri West filed an application with the MPSC to request an increase to its retail revenues of approximately $104 million.
Evergy Metro's 2026 Rate Case Proceeding In February 2026, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of approximately $140 million.
Interest Expense Evergy's interest expense increased $37.3 million in 2024, compared to 2023, primarily driven by: • a $124.4 million increase due to issuances of long-term debt; partially offset by • a $54.5 million decrease in interest expense on short-term borrowings primarily due to lower short-term debt balances in 2024; • a $25.1 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to a higher outstanding balance of qualified PISA additions and Evergy Kansas Central and Evergy Metro electing into Kansas PISA beginning July 2024; and • an $11.0 million decrease in interest expense due to the repayment of long-term debt.
Evergy Metro Interest Expense Evergy Metro's interest expense decreased $7.2 million in 2025, compared to 2024, primarily driven by: • an $11.3 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to a higher outstanding balance of qualified PISA additions and Evergy Metro electing into Kansas PISA beginning July 2024; • a $5.6 million decrease in interest expense on short-term borrowings primarily due to lower weighted-average interest rates; and • a $4.8 million decrease due to the repayment of long-term debt; partially offset by • a $12.0 million increase due to issuances of long-term debt.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness. Under the Evergy Kansas Central mortgage, the issuance of FMBs is subject to limitations based on the amount of bondable property additions.
Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness.
Moody's S&P Global Investors Service (a) Ratings (a) Evergy Outlook Stable Stable Corporate Credit Rating -- BBB+ Senior Unsecured Debt Baa2 BBB Junior Subordinated Note Baa3 BBB- Commercial Paper P-2 A-2 Evergy Kansas Central Outlook Stable Stable Corporate Credit Rating Baa1 BBB+ Senior Secured Debt A2 A Commercial Paper P-2 A-2 Evergy Kansas South Outlook Stable Stable Corporate Credit Rating Baa1 BBB+ Senior Secured Debt A2 A Short-Term Rating P-2 A-2 Evergy Metro Outlook Stable Stable Corporate Credit Rating Baa1 A- Senior Secured Debt A2 A Senior Unsecured Debt -- A- Commercial Paper P-2 A-2 Evergy Missouri West Outlook Negative Stable Corporate Credit Rating Baa2 BBB+ Senior Secured Debt A3 A Commercial Paper P-2 A-2 (a) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.
Moody's S&P Global Investors Service (a) Ratings (a) Evergy Outlook Stable Stable Corporate Credit Rating -- BBB+ Senior Unsecured Debt Baa2 BBB Junior Subordinated Note Baa3 BBB- Commercial Paper P-2 A-2 Evergy Kansas Central Outlook Stable Stable Corporate Credit Rating Baa1 BBB+ Senior Secured Debt A2 A Senior Unsecured Debt Baa1 BBB+ Commercial Paper P-2 A-2 Evergy Kansas South Outlook Stable Stable Corporate Credit Rating Baa1 BBB+ Senior Secured Debt A2 A Short-Term Rating P-2 A-2 Evergy Metro Outlook Stable Stable Corporate Credit Rating Baa1 A- Senior Secured Debt A2 A Senior Unsecured Debt Baa1 A- Commercial Paper P-2 A-2 Evergy Missouri West Outlook Stable Stable Corporate Credit Rating Baa3 BBB+ Senior Secured Debt Baa1 A Commercial Paper P-3 A-2 (a) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. 53 Table of Contents Shelf Registration Statements and Regulatory Authorizations Evergy In August 2024, Evergy filed an automatic shelf registration statement on Form S-3 with the SEC.
Regulatory Proceedings See Note 4 to the consolidated financial statements for information regarding other regulatory proceedings. Wolf Creek Refueling Outage and Fuel Supply Wolf Creek's most recent refueling outage began in March 2024 and the unit returned to service in May 2024. Wolf Creek's next refueling outage is planned to begin in the fourth quarter of 2025.
Regulatory Proceedings See Note 4 to the consolidated financial statements for information regarding other regulatory proceedings. 41 Table of Contents Wolf Creek Refueling Outage Wolf Creek's most recent refueling outage began in October 2025 and the unit returned to service in November 2025. Wolf Creek's next refueling outage is planned to begin in the spring of 2027.
The IRS is expected to provide guidance regarding the type of revenue to be included in the gross receipts portion of the credit computation, which could have a significant impact on the value of the nuclear PTCs available to Evergy. If Evergy is able to monetize the nuclear PTCs, it could result in significant cash inflows.
The IRS may provide guidance regarding the type of revenue to be included in the computation of gross receipts in 2026 which may significantly reduce the amount of nuclear PTCs available to Evergy. If Evergy is able to monetize the nuclear PTCs, it could result in significant cash inflows.
Revenue Recognition Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice.
Revenue Recognition Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy.
The following table summarizes Evergy Metro's comparative results of operations. 2024 Change 2023 (millions) Operating revenues $ 1,893.7 $ 4.7 $ 1,889.0 Fuel and purchased power 552.8 21.9 530.9 Operating and maintenance 281.7 (2.4) 284.1 Depreciation and amortization 400.6 (16.0) 416.6 Taxes other than income tax 147.4 14.6 132.8 Income from operations 511.2 (13.4) 524.6 Other income (expense), net 1.3 18.9 (17.6) Interest expense 147.1 11.3 135.8 Income tax expense 40.9 1.7 39.2 Net income $ 324.5 $ (7.5) $ 332.0 61 Table of Contents 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).
The following table summarizes Evergy Metro's comparative results of operations. 2025 Change 2024 (millions) Operating revenues $ 1,916.1 $ 22.4 $ 1,893.7 Fuel and purchased power 564.3 11.5 552.8 Operating and maintenance 297.2 15.5 281.7 Depreciation and amortization 408.8 8.2 400.6 Taxes other than income tax 141.3 (6.1) 147.4 Income from operations 504.5 (6.7) 511.2 Other income, net 0.1 (1.2) 1.3 Interest expense 139.9 (7.2) 147.1 Income tax expense 44.2 3.3 40.9 Net income $ 320.5 $ (4.0) $ 324.5 61 Table of Contents 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).
The core tenets of Evergy's strategy are as follows: • Affordability – maintaining affordable rates while investing in infrastructure and technology to meet customer demand; • Reliability – targeting top-tier performance in reliability, customer service and generation; and • Sustainability – advancing a responsible fleet transition while ensuring affordability and reliability.
The core tenets of Evergy's strategy are as follows: • Affordability – maintaining affordable rates while investing in infrastructure and technology to support growth and prosperity; • Reliability – targeting top-tier performance in reliability, customer service and generation; and • Sustainability – advancing an "all-of-the-above" generation portfolio.
Under the Evergy Kansas South mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of bondable property additions.
Under the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as amended and supplemented (Evergy Kansas South Mortgage Indenture), the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of 54 Table of Contents bondable property additions.
Any change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets. As of December 31, 2024 and 2023, Evergy had recorded AROs of $1,297.0 million and $1,203.1 million, respectively.
Any change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets. As of December 31, 2025 and 2024, Evergy had recorded AROs of $1,342.3 million and $1,297.0 million, respectively. See Note 6 to the consolidated financial statements for more information regarding Evergy's AROs.
Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators and to mitigate the impacts of inflationary pressures.
This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators and to mitigate the impacts of inflationary pressures.
The following table summarizes Evergy Kansas Central's comparative results of operations. 2024 Change 2023 (millions) Operating revenues $ 3,007.1 $ 308.7 $ 2,698.4 Fuel and purchased power 557.1 (35.5) 592.6 SPP network transmission costs 370.9 68.3 302.6 Operating and maintenance 476.0 (1.3) 477.3 Depreciation and amortization 561.7 46.2 515.5 Taxes other than income tax 250.7 30.9 219.8 Income from operations 790.7 200.1 590.6 Other income (expense), net 12.7 13.7 (1.0) Interest expense 229.5 14.9 214.6 Income tax expense (benefit) 12.2 18.1 (5.9) Equity in earnings of equity method investees, net of income taxes 3.3 (0.3) 3.6 Net income 565.0 180.5 384.5 Less: Net income attributable to noncontrolling interests 12.3 — 12.3 Net income attributable to Evergy Kansas Central, Inc. $ 552.7 $ 180.5 $ 372.2 58 Table of Contents 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).
The following table summarizes Evergy Kansas Central's comparative results of operations. 2025 Change 2024 (millions) Operating revenues $ 3,060.3 $ 53.2 $ 3,007.1 Fuel and purchased power 538.9 (18.2) 557.1 SPP network transmission costs 438.0 67.1 370.9 Operating and maintenance 478.8 2.8 476.0 Depreciation and amortization 579.2 17.5 561.7 Taxes other than income tax 223.7 (27.0) 250.7 Income from operations 801.7 11.0 790.7 Other income, net 15.7 3.0 12.7 Interest expense 241.2 11.7 229.5 Income tax expense 16.3 4.1 12.2 Equity in earnings of equity method investees, net of income taxes 3.4 0.1 3.3 Net income 563.3 (1.7) 565.0 Less: Net income attributable to noncontrolling interests 12.3 — 12.3 Net income attributable to Evergy Kansas Central, Inc. $ 551.0 $ (1.7) $ 552.7 58 Table of Contents 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).
Shelf Registration Statements and Regulatory Authorizations Evergy In August 2024, Evergy filed an automatic shelf registration statement on Form S-3 with the SEC. Under this Form S-3, which is uncapped, Evergy may issue debt and other securities, including common stock, in the future with the amounts, prices and terms to be determined at the time of future offerings.
Under this Form S-3, which is uncapped, Evergy may issue debt and other securities, including common stock, in the future with the amounts, prices and terms to be determined at the time of future offerings. The automatic registration statement was filed to replace a similar Form S-3 upon expiration of its three-year term.
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. 41 Table of Contents The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.
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.
Nuclear Production Tax Credit In 2022, the Inflation Reduction Act (IRA) was signed into law providing a transferable Production Tax Credit (PTC) for electricity produced by existing nuclear power plants, including Wolf Creek, from 2024 through 2032. The credit may be used to offset Evergy's income tax liability or be transferred to an unrelated third party.
Nuclear Production Tax Credit In 2022, the Inflation Reduction Act (IRA) was signed into law providing a transferable Production Tax Credit (PTC) for electricity produced by existing nuclear power plants. Beginning in 2024, nuclear units, including Wolf Creek, became eligible for a production tax credit through 2032.
Evergy Metro Interest Expense Evergy Metro's interest expense increased $11.3 million in 2024, compared to 2023, primarily driven by: • a $19.0 million increase due to issuances of long-term debt; partially offset by 63 Table of Contents • a $6.0 million decrease in interest expense due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to a higher outstanding balance of qualified PISA additions and Evergy Metro electing into Kansas PISA beginning July 2024; and • a $4.1 million decrease due to maturities of long-term debt.
Evergy Kansas Central Interest Expense Evergy Kansas Central's interest expense increased $11.7 million in 2025, compared to 2024, primarily driven by: • a $25.1 million increase due to issuances of long-term debt; and • a $6.7 million increase due to lower debt AFUDC driven by lower short-term interest rates in 2025; partially offset by • an $11.0 million decrease due to increases in carrying costs deferred to a regulatory asset in accordance with PISA due to Evergy Kansas Central electing into Kansas PISA beginning July 2024.
Cash Flows The following table presents Evergy's cash flows from operating, investing and financing activities. 2024 2023 (millions) Cash flows from operating activities $ 1,983.7 $ 1,980.2 Cash flows used in investing activities (2,261.8) (2,471.7) Cash flows from financing activities 280.3 494.0 Cash Flows from Operating Activities Evergy's cash flows from operating activities increased $3.5 million in 2024, compared to 2023.
Cash Flows The following table presents Evergy's cash flows from operating, investing and financing activities. 2025 2024 (millions) Cash flows from operating activities $ 2,045.2 $ 1,983.7 Cash flows used in investing activities (2,570.1) (2,261.8) Cash flows from financing activities 522.0 280.3 Cash Flows from Operating Activities Evergy's cash flows from operating activities increased $61.5 million in 2025, compared to 2024, primarily driven by an increase in cash receipts for retail electric sales in 2025.
These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 9 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.
These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events.
Equity Issuances Evergy expects to issue $2.8 billion of equity and equity-like securities between 2026 and 2029, subject to market conditions. Credit Ratings The ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets.
Credit Ratings The ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets.
Revenues and Expenses MWhs Sold 2024 Change 2023 2024 Change 2023 Retail revenues (millions) (thousands) Residential $ 738.8 $ (9.6) $ 748.4 5,475 (28) 5,503 Commercial 776.7 (2.2) 778.9 7,370 23 7,347 Industrial 132.7 1.8 130.9 1,711 33 1,678 Other retail revenues 10.3 (2.4) 12.7 45 (15) 60 Total electric retail 1,658.5 (12.4) 1,670.9 14,601 13 14,588 Wholesale revenues 82.6 (9.3) 91.9 4,638 (312) 4,950 Transmission revenues 19.9 5.6 14.3 N/A N/A N/A Other revenues 132.7 20.8 111.9 N/A N/A N/A Operating revenues 1,893.7 4.7 1,889.0 19,239 (299) 19,538 Fuel and purchased power (552.8) (21.9) (530.9) Operating and maintenance (a) (200.7) (1.2) (199.5) Depreciation and amortization (400.6) 16.0 (416.6) Taxes other than income tax (147.4) (14.6) (132.8) Gross margin (GAAP) 592.2 (17.0) 609.2 Operating and maintenance (a) 200.7 1.2 199.5 Depreciation and amortization 400.6 (16.0) 416.6 Taxes other than income tax 147.4 14.6 132.8 Utility gross margin (non-GAAP) $ 1,340.9 $ (17.2) $ 1,358.1 (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.
Revenues and Expenses MWhs Sold 2025 Change 2024 2025 Change 2024 Retail revenues (millions) (thousands) Residential $ 750.6 $ 11.8 $ 738.8 5,610 135 5,475 Commercial 781.5 4.8 776.7 7,464 94 7,370 Industrial 131.8 (0.9) 132.7 1,696 (15) 1,711 Other retail revenues 11.8 1.5 10.3 41 (4) 45 Total electric retail 1,675.7 17.2 1,658.5 14,811 210 14,601 Wholesale revenues 38.7 (43.9) 82.6 5,041 403 4,638 Transmission revenues 25.7 5.8 19.9 N/A N/A N/A Other revenues 176.0 43.3 132.7 N/A N/A N/A Operating revenues 1,916.1 22.4 1,893.7 19,852 613 19,239 Fuel and purchased power (564.3) (11.5) (552.8) Operating and maintenance (a) (201.0) (0.3) (200.7) Depreciation and amortization (408.8) (8.2) (400.6) Taxes other than income tax (141.3) 6.1 (147.4) Gross margin (GAAP) 600.7 8.5 592.2 Operating and maintenance (a) 201.0 0.3 200.7 Depreciation and amortization 408.8 8.2 400.6 Taxes other than income tax 141.3 (6.1) 147.4 Utility gross margin (non-GAAP) $ 1,351.8 $ 10.9 $ 1,340.9 (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.
See Note 6 to the consolidated financial statements for more information regarding Evergy's AROs. 45 Table of Contents EVERGY RESULTS OF OPERATIONS Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, level of capital investment, customer behavior and demand, the economy and competitive forces.
EVERGY RESULTS OF OPERATIONS Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, level of capital investment, customer behavior and demand, the economy and competitive forces. Substantially all of Evergy's revenues are subject to state or federal regulation.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

13 edited+4 added−1 removed22 unchanged
Biggest changeSee Note 13 to the consolidated financial statements for more information on potential loss on counterparty exposure for derivative instruments as of December 31, 2024. 65 Table of Contents Investment Risk Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits.
Biggest changeInvestment Risk Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits.
As of December 31, 2024, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
As of December 31, 2025, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors.
Based on this VaR analysis, as of December 31, 2024, a near term typical change in commodity prices is not expected to materially impact net income, cash flows or financial position.
Based on this VaR analysis, as of December 31, 2025, a near term typical change in commodity prices is not expected to materially impact net income, cash flows or financial position.
Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt, short-term borrowings and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
Evergy computes and presents information regarding the sensitivity to changes in 64 Table of Contents interest rates for variable rate debt, short-term borrowings and current maturities of fixed rate debt by assuming a 100-basis-point change in the current interest rates applicable to such debt over the remaining time the debt is outstanding.
Hedging Strategies From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors.
Hedging Strategies From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying 63 Table of Contents assets, indices, reference rates or a combination of these factors.
Derivative instruments entered into for non-regulated energy marketing 64 Table of Contents activities are marked-to-market each period, with changes in the fair value of the derivative instruments reflected in earnings. See Note 13 to the consolidated financial statements for more information.
Derivative instruments entered into for non-regulated energy marketing activities are marked-to-market each period, with changes in the fair value of the derivative instruments reflected in earnings. See Note 13 to the consolidated financial statements for more information.
A 100-basis-point change in interest rates applicable to this debt would impact Evergy's income before income taxes basis by approximately $9.1 million, net of AFUDC borrowed funds which represents the allowed cost of capital used to finance utility construction activity and is a reduction of interest expense.
A 100-basis-point change in interest rates applicable to this debt would impact Evergy's income before income taxes basis by approximately $13.2 million, net of AFUDC borrowed funds which represents the allowed cost of capital used to finance utility construction activity and is a reduction of interest expense.
VaR Model Trading Portfolio Year Ended Year Ended December 31, 2024 December 31, 2023 End High Average Low End High Average Low (millions) (millions) $ 1.1 $ 3.6 $ 0.7 $ 0.1 $ 0.6 $ 2.6 $ 0.5 $ — Management back-tests VaR results against performance due to actual price movements.
VaR Model Trading Portfolio Year Ended Year Ended December 31, 2025 December 31, 2024 End High Average Low End High Average Low (millions) (millions) $ 0.7 $ 2.8 $ 0.9 $ 0.1 $ 1.1 $ 3.6 $ 0.7 $ 0.1 Management back-tests VaR results against performance due to actual price movements.
As of December 31, 2024, 9.8% of Evergy's total debt (including short-term borrowings consisting of short-term debt in excess of utility construction work in progress balances that is not eligible for capitalization as AFUDC and borrowings under Evergy's receivable sale facilities) were exposed to interest rate risk.
As of December 31, 2025, 10.0% of Evergy's total debt (including short-term borrowings consisting of short-term debt in excess of utility construction work in progress balances that is not eligible for capitalization as AFUDC and borrowings under Evergy's receivable sale facilities) were exposed to interest rate risk.
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.
In addition to Evergy's investments in debt and equity securities in its nuclear decommissioning and pension trusts, Evergy has also historically made limited non-regulated equity and debt investments in early-stage energy solution companies. These limited investments are often in privately-owned companies that do not have readily determinable fair values.
As of December 31, 2024, Evergy had $1,380.8 million of short-term borrowings, variable rate debt and current maturities of fixed rate debt exposed to variable interest rate sensitivity.
As of December 31, 2025, Evergy had $1,524.6 million of short-term borrowings, variable rate debt and current maturities of fixed rate debt exposed to variable interest rate sensitivity.
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.
However, from time to time, these investments could have changes in fair value as a result of bankruptcies, acquisitions, mergers, initial public offerings, or observable market transactions for similar investments. In 2025, Evergy initiated a process to dispose of these investments and could experience changes in their value upon their ultimate liquidation.
The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations.
The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure.
Removed
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. 66 Table of Contents
Added
The credit risk associated with new large load customers is partially mitigated by the requirement that new large load customers post collateral equal to two years of minimum monthly bills at the time of signing the agreement, subject to established discounts based on creditworthiness.
Added
The Evergy Companies, at their discretion, may require additional collateral based on assessment of the overall creditworthiness of the counterparty. Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations.
Added
See Note 13 to the consolidated financial statements for more information on potential loss on counterparty exposure for derivative instruments as of December 31, 2025.
Added
See Note 1 to the consolidated financial statements for more information on these investments as of and for the year ended December 31, 2025. 65 Table of Contents