ML20129K033

Transmittal of 2019 Annual Financial Reports

ML20129K033
Person / Time
Site:	Wolf Creek
Issue date:	05/07/2020
From:	Benham R Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
RA 20-0046
Download: ML20129K033 (233)

Text

{{#Wiki_filter:Ron Benham Manager Nuclear and Regulatory Affairs May 7, 2020 RA 20-0046 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: Transmittal of 2019 Annual Financial Reports Commissioners and Staff: Wolf Creek Nuclear Operating Corporation (WCNOC) is transmitting one copy each of the enclosed 2019 annual reports, including financial statements, for its owners: Evergy Metro, Inc. (formerly Kansas City Power & Light Company), Every Kansas South, Inc. (formerly Kansas Gas & Electric Company), and Kansas Electric Power Cooperative, Inc. (KEPCo). Enclosure I provides the Evergy, Inc. Annual Report, which contains both the Evergy Metro, Inc. and the Evergy, Kansas South, Inc. information and Enclosure II provides the KEPCo Annual Report. This information is being submitted in accordance with 10 CFR 50.71(b). This letter contains no commitments. If you have any questions concerning this matter, please contact me at (620) 364-4204. Sincerely, Ron Benham RDB/rlt

Enclosures:

I Energy Forward 2019 Annual Report (Evergy) II Kansas Electric Power Cooperative, Inc. 2019 Annual Report cc: S. A. Morris (NRC), w/e N. OKeefe (NRC), w/e B. K. Singal (NRC), w/e Senior Resident Inspector (NRC), w/e

Enclosure I to RA 20-0046 Energy Forward 2019 Annual Report (Evergy) (194 Pages)

Energy Forward 2019 Annual Report >>evergyM

There is a fundamental shift in investment trends toward investing in companies that make strategic decisions with the interests of all its stakeholders in mind. We know that for Evergy to truly succeed, we must create a sustainable energy company positioned to serve all our stakeholders. 2019 was a year of additional progress toward that a year that garnered merger savings ahead of plan, strong financial performance and sustainability gains. We're continuing to propel Evergy forward, delivering on the promises we made when we created the company, as a forward-thinking, sustainable and efficient energy company. Year Ended December 31 2019 2018(01 2017(bl 2016(b) 2015(b) (Dollars in millions except per share amounts) EVERGY Operating Revenues $ 5,148 $ 4,276 $ 2,571 $ 2,562 $ 2,459 Net income $ 686 $ 546 $ 337 $ 361 $ 302 Net income attributable to Evergy, Inc. $ 670 $ 536 $ 324 $ 347 $ 292 Basic earnings per common share $ 2.80 $ 2.50 $ 2.27 $ 2.43 $ 2.11 Diluted earnings per common share $ 2.79 $ 2.50 $ 2.27 $ 2.43 $ 2.09 Total assets at year end $ 25,976 $ 25,598 $ 11,624 $ 11,487 $ 10,706 Total long-term obligations at year end(,1 $ 9,200 $ 7,472 $ 3,846 $ 3,699 $ 3,379 Cash dividends per common share $ 1.93 $ 1.735 $ 1.60 $ 1.52 $ 1.44 r,1 Includes long-term debt, current maturities of long-term debt, finance /eases, operating /eases, long-term debt of Variable Interest Entities ("VIEs") and current maturities of long-term debt of V/Es. Obligations related to operating /eases are only included beginning in 2019 due to Evergy's adoption of Topic 842, Leases. See Note 1 to the consolidated financial statements included in Part II, Item 8 of Evergy's annual report on Form 10-K for additional information. ~! On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results from the date of the closing of the merger and thereafter. Evergy amounts for 2017, 2016, and 2015 reflect the results of operation and financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction.

Evergy 2019 Annual Report - 1 To Our Shareholders We are Evergy! With the successful at Evergy work every day to deliver rebrand of our operating companies outstanding results for shareholders, t complete, we are proudly known as customers and our communities alike. Evergy not only to our investors but We know that for Evergy to truly also throughout our Kansas and Missouri succeed, we must create a sustainable operating areas. Now, we are building energy company positioned to serve all on our new brand identity as a forward- our stakeholders. thinking, sustainable and efficient energy company by delivering on the promises People and Profit Forward we made when we created the company. When KCP&L and Westar Energy merged in 2018, we committed to $628 million 2019 was a year of moving forward - a in merger efficiencies by 2023 . We are year that garnered merger savings ahead well ahead of that plan having realized of plan, strong financial performance and more than $215 million in savings, sustainability gains. Our moment of and we expect about $145 million in reflection is brief because 2019 was just additional savings to be realized in 2020. the beginning. We already have shifted At more than 40 percent ahead of target, toward how we propel Evergy forward. that outperformance stems from a combination of timing and savings Adapting to the changes in our industry attributable directly to our team's ingenuity as well as in the broader business finding new opportunities. As promised, community tops that list. If you look at a we have delivered $190 million in bill broad array of investment trends, there is credits to customers and requested a fundamental shift toward investing in no increases in our base rates. companies that make strategic decisions with the interests of all its stakeholders. Our merger provided a platform for As a regulated energy company, we operational cost savings and synergies. Quarterly Dividend 15b Market Capitalization Market cap as of 12/31/19. 3Q19 4Q19

2 - Evergy 2019 Annual Report Operations Delivering reliable, low cost energy to customers 2019 Retail Sales by Customer Type 3,714 megawatts of renewable power

• Commercial
• Residential
• Industrial CO2 Emission Reduction Targets 0%

10% 2019 Capacity 20% by Fuel Type 30% 45% Reduction 40% 50%

                              ',

• Coal 60% ',, 80%
• Gas & Oil 70% , Reduction
• Renewables 1

                                           ~

80%

• Nuclear 90%

100% 1. Renewables include both owned ~n1d2/31/19 power purchase agreements as o .

Evergy 2019 Annual Report - 3 But that is just the beginning of our effort Our capital allocation plan performed to manage cost and improve operations. as expected, with $1 .2 billion invested To capitalize on the momentum of our in infrastructure to maintain customer positive cost trajectory, we will continue reliability, which ranked solidly in industry to focus on opportunities to streaml ine, standard reliability metrics. Additionally, automate, digitize and enhance our when Missouri legislation allowed for Plant processes and performance execution . in Service Accounting (PISA), we adopted Our team is engaged in an all-out effort the practice and began infrastructure to drive continuous improvement and investments to capitalize on this new sustainable cost reduction in all aspects opportunity. We expect further PISA and at all levels of our company. We opportunities in 2020 and will continue are committed to building a culture our strategy to make the most of this where employee engagement and legislation for the benefit of our stakeholders. productivity thrives. Planet Forward Our successful strategy execution has Evergy only succeeds when we serve the resulted in returning almost $2.1 billion in greater good of our communities and capital to our shareholders - $1.6 billion help them thrive. We are delivering clean, in share repurchases and another $463 safe, reliable energy for today and in the mil lion in dividends, which we raised future by embracing alternative energy 6.3 percent, in line with guidance, at an sources to generate more power with less indicated annual rate of $2.02 per share. impact to the environment and choosing Reliability + Providing safe, reliable, and cost effective operations + Being a trusted energy partner to our customers + Collaborative, open and transparent regulatory relationships

4 - Evergy 2019 Annual Report Financial Delivering on Strategic Priorities Keep customer bills stable Allocate capital to drive Deliver competitive while delivering reliable sustainable, diverse shareholder returns services energy solutions

• Delivering on merger commitments * $7.68 of utility infrastructure
• Creating Value and efficiencies investment 20W - 2024 + Infrastructure investments

      + Merger savings                                   + An increase of $1.5B compared to              + Merger savings
       + Reliable service                                  prior five-year plan
                                                                                                         + Continued cost reductions

• Enhancing relationships with
• Focusing on CapEx optimization and
• Targeting dividend pay-out range customers and regulators reallocation to further capitalize on of 60% to 70% and growth in line Missouri PISA with EPS growth Five-Vear Capital Plan (millions) 2020 2021 2022 2023 2024 Generating Facilities $ 487 $ 555 $ 563 $ 455 $ 263 Transmission and Distribution Facilities 893 914 886 867 1,006 General Facilities and other 238 117 112 92 94 Total Capital Expenditures $ 1,618 $ 1,586 $ 1,571 $ 1,414 $ 1,363 Gross Merger Savings vs Projected 2020-2024 CapEx Original Merger Savings by Jurisdiction

($ in millions)

• Actual Exceeded
• Original 2019 Merger target by Targets -46%
• Kansas
• Missouri
• FERC 2018 2019 2020 2021 2022

Evergy 2019 Annual Report - 5 technologies that balance emission emissions 80 percent from 2005 levels by reductions with costs. 2050 through: Earlier this year, we announced our intent + Retiring all coal power plants in the to add 660 megawatts of wind energy Evergy fleet at or before the end of to our portfolio. This addition will bring their useful life; the total amount of wind serving Evergy + Continuing to make significant customers to 4,535 megawatts, making investments in renewable energy and Evergy one of the top five wind energy energy efficiency;

                                                                                         + Operating the Wolf Creek Nuclear Station until its license expires in 2045; Evergy is one of the top five wind energy                                                   and, if necessary
                                                                                         + Adding new low or carbon-free companies in the United States.                                                             generation.

With the myriad of steps we have taken companies in the United States. Thanks to reduce emissions the past 15 years in part to our investments, Kansas now we have reduced carbon emissions by 45 ranks #1 in the nation for wind generation percent in comparison to 2005 levels, with as a percentage of population and #4 sulfur dioxide and nitrogen oxide down 98 in overall wind generation! We also percent and 87 percent respectively. announced our plan to reduce carbon Some stakeholders may say the 80 Unique Investment 2019 Stock Price Movement a EVRG a UTY Index a S&P 500 Thesis 40% + Earnings growth driven by merger savings, cost management, infrastructure investment and share repurchase; not 30% predicated on raising customer prices + Stable base rates allow for on-going, 20% constructive dialogue w ith customers, regulators, policy makers and is good 10% for economic development + Strong balance sheet combined with 0% expected earnings and dividend growth provides an attractive total shareholder -10% return profile 12/31 1/31 2/28 3/31 4/30 5/31 6/30 7/31 8/31 9/30 10/31 11/30 12/31

6 - Evergy 2019 Annual Report Culture Foster engagement, diversity, excellence, and inclusion $1,000,000 Nearly $1 million raised through Employee Giving Campaign donations by nearly 2,500 employees. Matched by Evergy. 20,000 employee volunteer hours

$7.3 million in philanthropic and community support
$110 million spent with diverse suppliers 30 +

years active

                                                      ?~PPl!er diversity 1nit1at1ve

Evergy 2019 Annual Report - 7 percent by 2050 isn't fast enough. our strategy to ensure short-term gains Again, fast-tracking the closing of plants don't compromise long-term success and doesn't take into account the potential sustainability. That's why we set realistic, financial impact those stranded assets attainable financial and environmental could have on our customers' rates or goals that balance our stakeholders' shareholder earnings, nor does it address interests. When you invest in Evergy, we the potential job implications for the want you to invest knowing that we are communities where they are located or good stewards of that investment for the employees who work in them . Taking your benefit, as well as for our customers, a measured, attainable approach allows employees and our environment. us to make a commitment consistent with the Paris Climate Accord while being It is our honor to deliver consistent returns mindful and planning for the impact to other through conscientious business practices stakeholders. Of course, we will continue that make you as proud to invest in us to evaluate opportunities and business as we are to serve our customers and conditions that might allow for a quicker communities. Thank you again for your approach that benefits all stakeholders. confidence in Evergy. Evergy Forward The purpose we have laid out - to empower a better future - requires an Terry Bassham eye toward the future. We have structured President and Chief Executive Officer Community Vitality Advancing our communities through workforce and economic development We will invest in: Access and Creation Working with Business retention and expansion, equity/diversity/inclusion, organizations to create jobs and technology connectivity/access, and entrepreneurship improve our communities Career Readiness Preparing our Career skills and training, STEAM programs, mentoring, job community and individuals of all shadowing, internships, scholarships, workforce recruitment ages for jobs and retention Basic Needs Supporting our Utility assistance (energy savings and payments), disaster communities' basic needs such and emergency relief, targeted social services to address as hunger, utility assistance, and root cause issues emergency aid

8 - Evergy 2019 Annual Report Industry Insights Advancing Environmental, Social and Governance (ESG) and Sustainability Reporting The market awareness and desire for metrics generation, increasing renewable generation, to measure and manage sustainability reducing emissions and providing energy performance has emerged as a key strategic efficiency options for our customers. Evergy consideration for companies. Sustainability is now ranks as the #5 company in utility wind no longer a vague concept, but has evolved to energy generation and #3 in wind generation focus on three primary areas: Environmental, per customer. Thanks in part to our company's Social and Governance (ESG). commitment to wind energy, Kansas ranks

                                                                               #1 for per capita wind generation and #4 for Historically, there was a limited universe of     installed wind capacity in the country.

companies that disclosed ESG data, but now it is becoming an expectation of investors ... Evergy also has become a leader in the electric and really all stakeholders. The premise is vehicle arena nationwide by installing clean that by monitoring companies' ESG practices, charging networks across our service territories, stakeholders can avoid companies that might with more than 1,000 dual-port EV charging pose a greater financial risk due to their ESG stations installed, energizing communities practices. As a result, stakeholders want and reducing vehicle emissions, which are the standardized ESG benchmarking data in order largest source of CO2 emissions. to better understand a company's risks and to push for improvement of ESG metrics. Beyond environmental responsibility, we recognize the decisions we make have a social For several years, the electric industry has been impact. We have strengthened our community working toward standardized reporting of ESG outreach strategies to promote environmental data and Evergy has participated with our leadership and community vitality and have industry peers through Edison Electric Institute heightened our emphasis on diversity and (EEi) and Electric Power Research Institute inclusion. We're expanding our recruiting (EPRI) to develop uniform, consistent data and programs to attract more diverse applicants information for the benefit of stakeholders and, through our Supplier Diversity Program, interested in the industry's sustainability we spent more than $11 0 million in 2019 with progress. This process is continuing to evolve diverse suppliers. as we are now working with EEi and others in the industry to assess aligning our reporting Our Board of Directors is engaged in our ESG to broader market frameworks such as the oversight and we've also added an executive Sustainability Accounting Standards Board and steering committee to oversee our ESG the Task Force on Climate-Related Financial initiatives and progress to mitigate risk and Disclosure recommendations. build a more sustainable company. Evergy has a strong foundation for its ESG reporting. For years, Evergy and its predecessor companies have been diversifying electricity

2019 Annual Report evergy Form 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K 1!1 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15( d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or D TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ _ _to _ __ Exact name of registrant as specified in its charter, Commission state of incorporation, address of principal I.R.S. Employer File Number executive offices and telephone number Identification Number 001-38515 EVERGY, INC. 82-2733395 (a Missouri corporation) 1200 Main Street Kansas City, Missouri 64105 (816) 556-2200 001-03523 EVERGY KANSAS CENTRAL, INC. 48-0290150 (formerly Westar Energy, Inc.) (a Kansas corporation) 818 South Kansas Avenue Topeka, Kansas 66612 (785) 575-6300 000-51873 EVERGY METRO, INC. 44-0308720 (formerly Kansas City Power & Light Company) (a Missouri corporation) 1200 Main Street Kansas City, Missouri 64105 (816) 556-2200 Securities registered pursuant to Section 12(b) of the Act: Trading Symbol(s) Name of each exchange on Title of each class which registered Evergy, Inc. common stock EVRG New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: Evergy Kansas Central, Inc. Common Stock $0.01 par value and Evergy Metro, Inc. Common Stock without par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Evergy, Inc. Yes 00 No D Evergy Kansas Central, Inc. Yes D No 00 Evergy Metro, Inc. Yes D No 00 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15( d) of the Act. Evergy, Inc. Yes D No 00 Evergy Kansas Central, Inc. Yes D No 00 Evergy Metro, Inc. Yes D No 00 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Evergy, Inc. Yes 00 No D Evergy Kansas Central, Inc. Yes 00 No D Evergy Metro, Inc. Yes 0 No D Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Evergy, Inc. Yes 0 No D Evergy Kansas Central, Inc. Yes 0 No D Evergy Metro, Inc. Yes 0 No D Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Evergy, Inc. Large Non- Smaller Emerging Accelerated 0 Accelerated D accelerated D Reporting D Growth D Filer Filer Filer Company Company Evergy Kansas Central, Inc. Large Non- Smaller Emerging Accelerated D Accelerated D accelerated 0 Reporting D Growth D Filer Filer Filer Company Company Evergy Metro, Inc. Large Non- Smaller Emerging Accelerated D Accelerated D accelerated 00 Reporting D Growth D Filer Filer Filer Company Company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section I3(a) of the Exchange Act. Evergy, Inc. D Evergy Kansas Central, Inc. D Evergy Metro, Inc. D Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Evergy, Inc. Yes D No 00 Evergy Kansas Central, Inc. Yes D No 0 Evergy Metro, Inc. Yes D No 0 The aggregate market value of the voting and non-voting common equity held by non-affiliates ofEvergy, Inc. (based on the closing price of its common stock on the New York Stock Exchange on June 30, 2019) was approximately $14,138,041,261. All of the common equity of Evergy Kansas Central, Inc. and Evergy Metro, Inc. is held by Evergy, Inc. On February 24, 2020, Evergy, Inc. had 226,659,013 shares of common stock outstanding.

On February 24, 2020, Evergy Kansas Central, Inc. and Evergy Metro, Inc. each had one share of common stock outstanding and held by Evergy, Inc. Evergy Kansas Central, Inc. and Evergy Metro, Inc. meet the conditions set forth in General Instruction (I)(l)(a) and (b) of Form 10-K and are therefore filing this Form 10-K with the reduced disclosure format. Documents Incorporated by Reference Portions of the 2020 annual meeting proxy statement ofEvergy, Inc. to be filed with the Securities and Exchange Commission are incorporated by reference in Part III of this report. This combined annual report on Form 10-K is provided by the following registrants: Evergy, Inc. (Evergy), Evergy Kansas Central, Inc. (Evergy Kansas Central) and Evergy Metro, Inc. (Evergy Metro) (collectively, the Evergy Companies). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.

TABLE OF CONTENTS Page Number Cautionary Statements Regarding Certain Forward-Looking Information 3 Glossary of Terms 4 PART I Item 1. Business 7 Item IA. Risk Factors 14 Item lB. Unresolved Staff Comments 22 Item 2. Properties 23 Item 3. Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer 27 Purchases of Equity Securities Item 6. Selected Financial Data 28 Item 7. Management's Discussion and Analysis of Financial Condition and Results of 29 Operations Item 7A. Quantitative and Qualitative Disclosures About Market Risk 54 Item 8. Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial 147 Disclosure Item 9A. Controls and Procedures 147 Item 9B. Other Information 151 PART III Item 10. Directors, Executive Officers and Corporate Governance 151 Item 11. Executive Compensation 152 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related 152 Stockholder Matters Item 13. Certain Relationships and Related Transactions, and Director Independence 153 Item 14. Principal Accounting Fees and Services 153 PART IV Item 15. Exhibits and Financial Statement Schedules 154 Signatures 175 2

CAUTIONARY STATEMENTS REGARDING CERTAIN FORWARD-LOOKING INFORMATION Statements made in this report that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to our strategic plan, including, without limitation, earnings per share and dividend growth targets, operating and maintenance expense savings goals and future capital allocation plans; the outcome of regulatory and legal proceedings; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "should," "seeks," "intends," "proposed," "projects," "planned," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information. In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; changes in business strategy or operations; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation and restructuring of the electric utility industry; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; the impact of climate change, including increased frequency and severity of significant weather events and reduced demand for coal-based energy; prices and availability of electricity in wholesale markets; market perception of the energy industry and the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, including changes in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; the transition to a replacement for the London Interbank Offered Rate (LIBOR) benchmark interest rate; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments; impact of terrorist acts, including cyber terrorism; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; delays and cost increases of generation, transmission, distribution or other projects; the Evergy Companies' ability to manage their transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to increased costs of, or changes in, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence our strategic plan, financial results or operations; the possibility that the expected value creation from the merger of Great Plains Energy Incorporated (Great Plains Energy) and Evergy Kansas Central that resulted in the creation of Evergy will not be realized, or will not be realized within the expected time period; difficulties related to the integration, including the diversion of management time; difficulties in maintaining relationships with customers, employees, regulators or suppliers; disruption related to the rebranding of the Evergy Companies, including the impact of the rebranding on receipt of customer payments; and other risks and uncertainties. This list of factors is not all-inclusive because it is not possible to predict all factors. Part I, Item IA, Risk Factors included in this report should be carefully read for further understanding of potential risks for the Evergy Companies. Other sections of this report and other periodic reports filed by the Evergy Companies with the Securities and Exchange Commission (SEC) should also be read for more information regarding risk factors. Each forward-looking statement speaks only as of the date of the pm1icular statement. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 3

Available Information The SEC maintains an internet site that contains reports, proxy and infonnation statements and other information regarding issuers that file electronically with the SEC at sec.gov. Additionally, information about the Evergy Companies, including their combined annual reports on Form 10-K, combined quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed with the SEC, is also available through the Evergy Companies' website, www.evergy.com. Such reports are accessible at no charge and are made available as soon as reasonably practical after such material is filed with or furnished to the SEC. Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, www.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on Evergy's website is not part of this document. GLOSSARY OF TERMS The following is a glossary of frequently used abbreviations or acronyms that are found throughout this report. Abbreviation or Acronym Definition ACE Affordable Clean Energy AEP American Electric Power Company, Inc. AFUDC Allowance for Funds Used During Construction Amended Merger Agreement Amended and Restated Agreement and Plan of Merger, dated as of July 9, 2017, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy Holding, Inc. and King Energy, Inc. AMT Alternative Minimum Tax AROs Asset Retirement Obligations ASC Accounting Standards Codification ASR Accelerated share repurchase ASU Accounting Standards Update BSER Best system of emission reduction CAA Clean Air Act Amendments of 1990 CCRs Coal combustion residuals CO2 Carbon dioxide COLI Corporate-owned life insurance CPP Clean Power Plan CWA Clean Water Act D.C. Circuit U.S. Court of Appeals for the D.C. Circuit DOE Department of Energy EIRR Environmental Improvement Revenue Refunding ELG Effluent limitations guidelines EPA Environmental Protection Agency EPS Earnings per common share ERISA Employee Retirement Income Security Act of 1974, as amended ERSP Earnings Review and Sharing Plan Evergy Evergy, Inc. and its consolidated subsidiaries Evergy Board Evergy Board of Directors Evergy Companies Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group 4

Abbreviation or Acronym Definition Evergy Kansas Central Evergy Kansas Central, Inc., formerly known as Westar Energy, Inc., a wholly-owned subsidiary ofEvergy, and its consolidated subsidiaries Evergy Kansas South Evergy Kansas South, Inc., fo1merly known as Kansas Gas and Electric Company, a wholly-owned subsidiary ofEvergy Kansas Central Evergy Metro Evergy Metro, Inc., formerly known as Kansas City Power & Light Company, a wholly-owned subsidiary ofEvergy, and its consolidated subsidiaries Evergy Metro Mortgage Evergy Metro General Mortgage Indenture and Deed of Trust dated as of Indenture December 1, 1986, as supplemented Evergy Missouri West Evergy Missouri West, Inc., formerly known as KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary ofEvergy Evergy Transmission Company Evergy Transmission Company, LLC, formerly known as GPE Transmission Holding Company, LLC Exchange Act The Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission FMB First Mortgage Bond GAAP Generally Accepted Accounting Principles GHG Greenhouse gas Great Plains Energy Great Plains Energy Incorporated JEC Jeffrey Energy Center KCC State Corporation Commission of the State of Kansas KDHE Kansas Department of Health & Environment King Energy King Energy, Inc., a wholly-owned subsidiary ofEvergy kWh Kilowatt hour LIBOR London Interbank Offered Rate LTISA Long-Term Incentive and Share Award plan MDNR Missouri Department of Natural Resources MECG Midwest Energy Consumers Group MEEIA Missouri Energy Efficiency Investment Act Monarch Energy Monarch Energy Holding, Inc. MPSC Public Service Commission of the State of Missouri MW Megawatt MWh Megawatt hour NAAQS National Ambient Air Quality Standards NAV Net Asset Value NRC Nuclear Regulatory Commission NSR New source review OCI Other comprehensive income OPC Office of the Public Counsel PISA Plant-in service accounting Prairie Wind Prairie Wind Transmission, LLC, 50% owned by Evergy Kansas Central RSU Restricted share unit RTO Regional transmission organization SEC Securities and Exchange Commission SPP Southwest Power Pool, Inc. TCJA Tax Cuts and Jobs Act 5

Abbreviation or Acronym Definition TCR Transmission Congestion Rights TFR Transmission formula rate Transource Transource Energy, LLC and its subsidiaries, 13.5% owned by Evergy Transmission Company VIE Variable interest entity Wolf Creek Wolf Creek Generating Station 6

PARTI ITEM 1. BUSINESS General Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc. are separate registrants filing this combined annual report on Form 10-K. The tenns "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central, and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group. Information in other Items of this report as to which reference is made in this Item 1 is hereby incorporated by reference in this Item 1. The use of terms such as "see" or "refer to" shall be deemed to incorporate into this Item 1 the information to which such reference is made. EVERGY, INC. Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.

• Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), formerly known as Kansas Gas and Electric Company.
• Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
• Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
• Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% ofTransource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method. Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro, and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operates in one segment). Evergy serves approximately 1,604,300 customers located in Kansas and Missouri. Customers include approximately 1,407,700 residences, 189,600 commercial firms and 7,000 industrials, municipalities and other electric utilities. Evergy is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. 7

The table below summarizes the percentage of Evergy's revenues by customer classification. 2019 2018 2017 Residential Commercial 35% 32% 28% Industrial 12% Wholesale 7% 10% 12% Transmission 6% 7% 11% Other 3% 2% 1% Total 100% 100% 100%'. The table below summarizes the percentage of Evergy's retail electricity sales by customer class. 2019 2018 2017 Residential

• 36% 37%

Commercial 43% 41% 38% Industrial* 21% 22% 30% Total 100% 100% 100% Merger of Great Plains Energy and Evergy Kansas Central Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 201 7, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. Following the completion of these mergers, Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West, became wholly-owned subsidiaries of Evergy. The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Evergy Kansas Central. As a result of the closing of the merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share ofEvergy Kansas Central common stock was converted into 1 share of Evergy common stock. Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter. See Note 2 to the consolidated financial statements for more info1mation regarding the merger. 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 8

service ten-itories. The Evergy Companies are also subject to regulation by the Federal Energy Regulatory Commission (FERC) with respect to transmission, wholesale sales and rates and other matters. Evergy has an indirect 94% ownership interest in Wolf Creek Generating Station (Wolf Creek), which is subject to regulation by the Nuclear Regulatory Commission (NRC) with respect to licensing, operations and safety-related requirements. The table below summarizes the rate orders in effect for Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's retail rate jurisdictions. Allowed Return Rate-Making on Equity Equity Ratio Effective Date .Evergy Kansas Central CaJ 9,:3% *51,46%i*** *.* §~rle,mw~r~Qi~, Evergy Metro - Kansas KCC 9.3% 49.09% December 2018 Everny 1'.1etro -:: l\1issouri Evergy Missouri West MPSC (b) (b) December 2018 (aJ The KCC establishes rates for Evergy Kansas Central and Evergy Kansas South on a consolidated basis. (bl Evergy Metro's and Evergy Missouri West's current MPSC rate order does not contain an allowed return on equity or rate-making equity ratio. Evergy expects its 2020 Kansas and Missouri jurisdictional retail revenues to be approximately 60% and 40%, respectively, based on historical averages ofEvergy 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 5 to the consolidated financial statements for additional information concerning regulatory matters. Competition Missouri and Kansas continue to operate on the fully integrated and regulated retail utility model. As a result, the Evergy Companies do not compete with others to supply and deliver electricity in their franchised service ten-itories in exchange for agreeing to have their terms of service regulated by state regulatory bodies. If Missouri or Kansas were to pass and implement legislation authorizing or mandating retail choice, Evergy may no longer be able to apply regulated utility accounting principles to deregulated portions of its operations, which may require a surcharge to recover certain costs from legacy customers or could lead to a write-off of certain regulatory assets and liabilities. Evergy competes in the wholesale market to sell power in circumstances when the power it generates is not required for retail customers in its service ten-itory. This competition primarily occurs within the SPP Integrated Marketplace, in which Evergy Kansas Central, Evergy Metro and Evergy Missouri West are participants. This marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time for maximum regional cost-effectiveness. The SPP Integrated Marketplace is similar to other Regional Transmission Organization (RTO) or Independent System Operator (ISO) markets cun-ently operating in other regions of the United States. Power Supply Evergy has 14,700 MWs ofowned generating capacity and renewable purchased power agreements. Evergy's owned generation and purchased power from others, as a percentage of total MWhs generated and purchased, was approximately 71 % and 29%, respectively, over the last two years. Evergy purchases power to meet its customers' needs, to satisfy firm power commitments or to meet renewable energy standards. Management believes Evergy will be able to meet its future purchased power needs due to the coordination of planning and operations in the SPP region and existing power purchase agreements; however, price and availability of power purchases may be impacted during periods of high demand. 9

Evergy's total capacity by fuel type, including both owned generating capacity and purchased power agreements, is detailed in the table below. Estimated Percent of Total Fuel Type MW Capacity Capacity Coal 5,903. 40 % Natural gas and oil 3,988 27 Wind(a) 3,642 24 Uranium 1,104 8 Solar, landfi1Lgas and hydroelectric (b) 72 I Total capacity 14,709 100 % (al MWs are based on nameplate capacity of the wind facility. Includes owned generating capacity of 579 MW s and long-term power purchase agreements of approximately 3,063 MWs of wind generation that expire in 2028 through 2048. See Item 2, Properties, for additional information. (bl Includes a long-term power purchase agreement for approximately 60 MWs of hydroelectric generation that expires in 2023. Evergy's projected peak summer demand for 2020 is approximately 10,367 MWs. Evergy expects to meet its projected capacity requirements for the foreseeable future with its existing generation assets and power and capacity purchases. Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP. The SPP is a FERC-approved RTO with the responsibility to ensure reliable power supply, adequate transmission infrastructure and competitive wholesale electricity prices in the region. As SPP members, Evergy Kansas Central, Evergy Metro and Evergy Missouri West are required to maintain a minimum reserve margin of 12%. This net positive supply of capacity is maintained through generation asset ownership, capacity agreements, power purchase agreements and peak demand reduction programs. The reserve margin is designed to support reliability of the region's electric supply. Environmental Matters There have been, and management believes there will continue to be, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce greenhouse gas emissions (GHG), impose a tax on emissions and create incentives for low-carbon generation and energy efficiency. These efforts, and climate change itself, have the potential to adversely affect the Evergy Companies' results of operations, financial position and cash flows. See Part I, Item IA, Risk Factors, for additional information. The Evergy Companies have taken, and will continue to take, proactive measures to mitigate the impact of climate change on its businesses. For example, the Evergy Companies regularly conduct preparedness exercises for a variety of disruptive events, including storms, which may become more frequent or intense due to climate change. In addition, the Evergy Companies have invested, and will continue to invest, in grid resiliency. Much of the Evergy Companies' infrastructure is aged, and grid resiliency efforts include building additional transmission and distribution lines, replacing aged infrastructure and proactively managing the vegetation that can damage systems during severe weather. The Evergy Companies also monitor water conditions at their generating facilities and focus on water conservation at these facilities to address resource depletion. Transforming Evergy's Generation Fleet The Evergy Companies are committed to a long-term strategy to reduce carbon emissions in a cost-effective and reliable manner and are targeting to achieve an 80% reduction of carbon emissions by 2050 from 2005 levels. The trajectory and timing ofreaching this goal could be impacted by political, legal and regulatory actions and technological matters. Public attention is currently focused on reducing GHG emissions and closing coal-fired generating units. Diversity of fuel supply has historically provided cost and reliability benefits. In addition, the Evergy Companies must prudently utilize the generation assets that regulators have allowed the Evergy Companies to include in rates and avoid "stranding" assets by prematurely closing facilities. The Evergy Companies use an integrated resource plan, which is a detailed analysis that estimates factors that influence the future supply and 10

demand for electricity, to inform the manner in which they supply electricity. The integrated resource plan considers forecasts of future electricity demand, fuel prices, transmission improvements, new generating capacity, integration of renewables, energy storage, energy efficiency and demand response initiatives. Strategies that the Evergy Companies have pursued include:

• retiring fossil fuel generation;
• developing renewable energy facilities;
• collaborating with regulators to offer customers the opportunity to procure electricity produced with renewable resources; and
• investing in customer energy efficiency programs.

Since 2005, the Evergy Companies have added over 3,500 megawatts of renewables, while retiring more than 2,400 megawatts of fossil generation. The transition of their generation fleet has allowed the Evergy Companies to reduce carbon emissions by almost 40% since 2005. The Evergy Companies are also committed to transparency. On its website, www.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 and report are not incorporated into this filing. See Note 15 to the consolidated financial statements for information regarding environmental matters. Fuel The fuel sources for Evergy's owned generation and purchased power agreements are coal, wind and other renewable sources, uranium and natural gas and oil. The actual 2019 fuel mix and fuel cost in cents per net kilowatt hour (kWh) delivered are outlined in the following table. Fuel cost in cents per Fuel Mix<*) net kWh delivered (b) Actual Actual Fuel 2019 Coal Wind, hydroelectric, landfill gas and solar 27 2.36 Fuel mix based on percent of net MWhs generated by owned resources and delivered under renewable purchased power agreements. (bl Fuel cost in cents per net kWh delivered includes purchased power costs associated with renewable purchased power agreements. Coal During 2020, Evergy's generating units, including jointly-owned units, are projected to use approximately 17 million tons of coal. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have entered into coal-purchase contracts with various suppliers in Wyoming's Powder River Basin (PRB), the nation's principal supply region of low-sulfur coal, and with local suppliers. The coal to be provided under these contracts is expected to satisfy approximately 80% of the projected coal requirements for 2020 and approximately 10% for 2021. The remainder of the coal requirements is expected to be fulfilled through entering into additional contracts or spot market purchases. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have also entered into rail transportation contracts with various railroads to transp01i coal from the PRB and local suppliers to their generating units. The transportation services to be provided under these contracts are expected to satisfy almost all of the projected transportation requirements for 2020 and approximately 75% for 2021. The contract rates adjust for changes in railroad costs. 11

Nuclear Fuel Evergy Kansas South and Evergy Metro each owns 47% of Wolf Creek, which is Evergy's only nuclear generating unit. Wolf Creek purchases uranium and has it processed for use as fuel in its reactor. This process involves conversion of uranium concentrates to uranium hexafluoride, enrichment of uranium hexafluoride and fabrication of nuclear fuel assemblies. The owners of Wolf Creek have on hand or under contract all of the uranium, uranium enrichment and conversion services needed to operate Wolf Creek through 2027. The owners also have under contract all of the uranium fabrication required to operate Wolf Creek through September 2025. Natural Gas Evergy purchases natural gas for use in its generating units primarily through spot market purchases. From time to time, Evergy also may enter into contracts, including the use of derivatives, in an effort to manage the cost of natural gas. For additional information about our exposure to commodity price risks, see Item 7A., Quantitative and Qualitative Disclosures About Market Risk. Evergy Kansas Central maintains natural gas transportation arrangements with Kansas Gas Service and Southern Star Central Gas Pipeline. The Kansas Gas Service arrangement has historically expired on April 30 of each year and is renegotiated for an additional one-year term. The Southern Star Central Gas Pipeline arrangement expires based on the generating unit being served with expiration dates from 2022 to 2030. Evergy Kansas Central, Inc. Evergy Kansas Central, a Kansas corporation incorporated in 1924 and headquartered in Topeka, Kansas, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Kansas Central serves approximately 716,200 customers located in central and eastern Kansas. Customers include approximately 624,400 residences, 87,300 commercial films, and 4,500 industrials, municipalities and other electric utilities. Evergy Kansas Central's retail revenues averaged approximately 76% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales, transmission and miscellaneous electric revenues accounted for the remainder of Evergy Kansas Central's revenues. Evergy Kansas Central is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Evergy Metro, Inc. Evergy Metro, a Missouri corporation incorporated in 1922 and headquartered in Kansas City, Missouri, is an integrated, regulated electric utility that engages in the generation, transmission, distribution and sale of electricity. Evergy Metro serves approximately 558,200 customers located in western Missouri and eastern Kansas. Customers include approximately 493,300 residences, 62,900 commercial firms, and 2,000 industrials, municipalities and other electric utilities. Evergy Metro's retail revenues averaged approximately 92% of its total operating revenues over the last three years. Wholesale firm power, bulk power sales and miscellaneous electric revenues accounted for the remainder ofEvergy Metro's revenues. Evergy Metro is significantly impacted by seasonality with approximately one-third of its retail revenues recorded in the third quarter. Missouri and Kansas jurisdictional retail revenues for Evergy Metro averaged approximately 56% and 44%, respectively, of total retail revenues over the last three years. Employees At December 31, 2019, the Evergy Companies had 4,617 employees, including 2,520 represented by five local unions of the International Brotherhood of Electrical Workers (IBEW). Evergy also has a 94% indirect ownership share in Wolf Creek, which, at December 31, 2019, had 858 employees, including 4 77 represented by a local union of the IBEW and a local union of the United Government Security Officers of America (UGSOA). Evergy Kansas Central has labor agreements with IBEW Locals 304 and 1523, representing power plant and transmission and distribution workers (expires June 30, 2021). Evergy Metro has labor agreements with IBEW Local 1613, representing clerical employees (expires March 31, 2021), with IBEW Local 1464, representing transmission and distribution workers (expires January 31, 2021), and with IBEW Local 412, representing power plant workers (expires February 28, 2021). Wolf Creek has labor agreements with IBEW Local 304 (expires September 20, 2021) and UGSOA Local 252 (expires July 31, 2020). 12

Information About Evergy's Executive'--""'~* Set forth below is information relating to the executive officers of Evergy, Inc. Each executive officer holds the same position with each ofEvergy Kansas Central, Inc., Evergy Metro, Inc., Evergy Kansas South, Inc. and Evergy Missouri West, Inc. as he or she does with Evergy, Inc. Executive officers serve at the pleasure of the board of directors. There are no family relationships among any of the executive officers, nor any a1Tangements or understandings between any executive officer and other persons pursuant to which he or she was appointed as an executive officer. Assumed an Officer Name Age Current Position(s) Position Terry Bassham <aJ 59 President and Chief Executive Officer 2005 Kevin E. Bryant (b) 44 Executive Vice President and Chief Operating Officer 2006 Gregory A. Greenwood Cc) 54 Executive Vice President, Strategy and Chief Administrative 2003 Officer Anthony D. Somma (dl 56 Executive Vice President and Chief Financial Officer 2006 Jerl L. Banning (eJ 58 Senior Vice Presidentand Chief People Officer 2010 Charles A. Caisley (fJ 46 Senior Vice President, Marketing and Public Affairs and Chief 2011 Customer Officer Heather A Hufuphrey (g) 49 Senior Vice President, .General Counsel andC()rporate Secretary 2010 Charles L. King (hl 55 Senior Vice President and Chief Technology Officer 2013 P. Busser (iJ 51 Risk Management and Controlle.r 2014 (a) Mr. Bassham was appointed President and Chief Executive Officer ofEvergy, Inc. in June 2018. Mr. Bassham served as Chairman of the Board of Great Plains Energy (2013-2018) and had served as Chief Executive Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West since 2012. He has served as President of each company since 2011. He previously served as President and Chief Operating Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2012) and as Executive Vice President- Utility Operations ofEvergy Metro and Evergy Missouri West (2010-2011 ). He was Executive Vice President - Finance and Strategic Development and Chief Financial Officer of Great Plains Energy (2005-2010) and ofEvergy Metro and Evergy Missouri West (2009-2010). (b) Mr. Bryant was appointed Executive Vice President and Chief Operating Officer ofEvergy, Inc. in June 2018. Mr. Bryant previously served as Senior Vice President - Finance and Strategy and Chief Financial Officer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2015-2018). He previously served as Vice President - Strategic Planning of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014). He served as Vice President - Investor Relations and Strategic Planning and Treasurer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2013). He served as Vice President - Investor Relations and Treasurer of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2013). He was Vice President - Strategy and Risk Management ofEvergy Metro and Evergy Missouri West (2011) and Vice President - Energy Solutions ofEvergy Metro (2006-201 l) and Evergy Missouri West (2008-2011 ). (c) Mr. Greenwood was appointed Executive Vice President, Strategy and Chief Administrative Officer ofEvergy, Inc. in June 2018. Mr. Greenwood previously served in the following officer roles for Evergy Kansas Central: Senior Vice President, Strategy (2011-2018); Vice President, Major Construction Projects (2006-2011 ); and Treasurer (2003-2006). Mr. Greenwood also served in the following roles for Evergy Kansas Central: Executive/Senior Director, Corporate Finance (1999-2003); Director, Financial Strategy and Acting Director, Internal Audit (1999-2000); and Director, Financial Strategy (1998-1999). Mr. Greenwood joined Evergy Kansas Central in 1993. (d) Mr. Somma was appointed Executive Vice President and Chief Financial Officer ofEvergy, Inc. in June 2018. Mr. Somma previously served as Senior Vice President, Chief Financial Officer and Treasurer (2011-2018) for Evergy Kansas Central, after having been appointed as Treasurer in 2006 and Vice President in 2009. He also served as Executive Director, Generation (2004-2006), Executive Director, Finance (1998-1999) and Director, Corporate Strategy (1996-1998) ofEvergy Kansas Central, after having joined the company in 1994. From 1999 to 2004, Mr. Somma served in various leadership roles with a former affiliate ofEvergy Kansas Central, including Senior Vice President, Finance and Administration, Chief Financial Officer and Secretary. 13

(e) Mr. Banning was appointed Senior Vice President and Chief People Officer of Evergy, Inc. in June 2018. Mr. Banning previously served in the following officer roles for Evergy Kansas Central: Senior Vice President, Operations Support and Administration (2015-2018); Vice President, Human Resources and IT (2014); and Vice President, Human Resources (2010- 2013). Mr. Banning also served as Executive Director of Human Resources for Evergy Kansas Central (2008-2010). (f) Mr. Caisley was appointed Senior Vice President, Marketing and Public Affairs and Chief Customer Officer ofEvergy, Inc. in June 2018. Mr. Caisley served as Vice President - Marketing and Public Affairs of Great Plains Energy, Evergy Metro and Evergy Missouri West (2011-2018). He was Senior Director of Public Affairs (2008-2011) and Director of Governmental Affairs of Evergy Metro (2007-2008). (g) Ms. Humphrey was appointed Senior Vice President, General Counsel and Corporate Secretary ofEvergy, Inc. in June 2018. Ms. Humphrey previously served as Senior Vice President - Corporate Services and General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2016-2018). She previously served as General Counsel (2010-2016) and Senior Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2012-2016). She served as Vice President - Human Resources of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010-2012). She was Senior Director of Human Resources and Interim General Counsel of Great Plains Energy, Evergy Metro and Evergy Missouri West (2010) and Managing Attorney ofEvergy Metro (2007-2010). (h) Mr. King was appointed Senior Vice President and Chief Technology Officer ofEvergy, Inc. in Februaiy 2020. He previously served as Senior Vice President, Information Technology and Chief Information Officer (2019) and Vice President, Information Technology and Chieflnformation Officer (2018-2019) ofEvergy, Inc. Prior to that, he served as Vice President- Information Technology (2013-2018), as Senior Director oflnformation Technology Applications and Delivery (2013) and Director oflnformation Technology Applications (2011-2013) ofEvergy Metro and Evergy Missouri West. Mr. King also served in various roles, including leadership roles, with Dish Network, CentmyLink, Sprint and Accenture. (i) Mr. Busser was appointed Vice President - Risk Management and Controller ofEvergy, Inc. in June 2018. Mr. Busser was appointed Vice President - Risk Management and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West in 2016. He previously served as Vice President - Business Planning and Controller of Great Plains Energy, Evergy Metro and Evergy Missouri West (2014-2016). He served as Vice President - Treasurer of El Paso Electric Company (2011-2014). Prior to that, he served as Vice President - Treasurer and Chief Risk Officer (2006-2011) and Vice President - Regulatory Affairs and Treasurer (2004-2006) of El Paso Electric Company. ITEM 1A. RISK FACTORS Utility Regulatory Risks: Prices are established by regulators and may not be sufficient to result in a recovery of costs or provide for a return on investment. The prices that the FERC, KCC and MPSC authorize the utility subsidiaries of Evergy to charge significantly influence the Evergy Companies' results of operations, financial position and cash flows. In general, utilities are allowed to recover in customer rates costs that were prudently incurred to provide utility service, plus a reasonable return on invested capital. There can be no assurance, however, that regulators will detern1ine costs to have been prudently incurred. Further, the amounts approved by the regulators may not be sufficient to allow for a recovery of costs or provide for an adequate return on and of capital investments. Also, amounts that were approved by regulators may be appealed, modified, limited or eliminated by subsequent regulatory or legislative actions. A failure to recover costs or earn a reasonable return on invested capital could have a material adverse effect on the results of operations, financial condition and cash flows of Evergy and its utility subsidiaries. The Evergy Companies are also exposed to cost-recovery shortfalls due to the inherent "regulatory lag" in the rate-setting process. This is because utility rates are generally based on historical information and, except for certain situations where regulators allow for recovery of expenses through use of a formula that tracks costs, are not subject to adjustment between rate cases. In connection with the merger, Evergy Kansas Central and Evergy Metro agreed 14

to a five-year base rate moratorium in Kansas beginning in December 2018. See Note 2 to the consolidated financial statements for additional information. In addition, effective as of January 1, 2019, Evergy Metro and Evergy Missouri West elected into plant-in service accounting (PISA), which, by law, requires each company to keep base rates constant for three years following Evergy Metro's and Evergy Missouri West's last general rate case and limits the extent to which prices can increase thereafter. These and other factors may result in under-recovery of costs or failure to earn the authorized return on investment, or both. Failure to timely recover the full investment costs of capital projects, the impact of renewable energy and energy efficiency programs, other utility costs and expenses due to regulatory disallowances, regulatory lag or other factors could lead to lowered credit ratings, reduced access to capital markets, increased financing costs, lower flexibility due to constrained financial resources and increased collateral security requirements or reductions or delays in planned capital expenditures. In response to competitive, economic, political, legislative, public perception and regulatory pressures, Evergy's utility subsidiaries may be subject to rate moratoriums, rate refunds, limits on rate increases, lower allowed returns on investments or rate reductions, including phase-in plans designed to spread the impact of rate increases over an extended period for the benefit of customers. Any of these results could have a material adverse effect on the results of operations, financial condition and cash flows of the Evergy Companies. Legislative and regulatory requirements may increase costs and result in compliance penalties. FERC, the North American Electric Reliability Corporation (NERC) and SPP have implemented and enforce an extensive set of transmission system reliability, cybersecurity and critical infrastructure protection standards that apply to public utilities. The MPSC and KCC have the authority to implement utility operational standards and requirements, such as vegetation management standards, facilities inspection requirements and quality of service standards. In addition, Evergy is also subject to health, safety and other requirements enacted by the Occupational Safety and Health Administration, the Department of Transportation, the Depa1tment of Labor and other federal and state agencies. As discussed more fully under "Operational Risks," the NRC extensively regulates nuclear power plants, including Wolf Creek. The costs of complying with existing, new or modified regulations, standards and other requirements could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies. Furthermore, regulatory changes could result in operational changes that increase costs or adversely impact the Evergy Companies' prospects. In addition, failure to meet quality of service, reliability, cybersecurity, critical infrastructure protection, operational or other standards and requirements could expose the Evergy Companies to penalties, additional compliance costs or adverse rate consequences, any of which could have a material adverse impact on their results of operations, financial position and cash flows. Environmental Risks: Costs to comply with environmental laws and regulations, including those relating to GHG emissions, are significant and may adversely impact operations and financial results. The Evergy Companies are subject to extensive and evolving federal, state and local environmental laws, regulations and permit requirements relating to air and water quality, waste management and hazardous substance disposal, protected natural resources (such as wetlands, endangered species and other protected wildlife) and health and safety. For example, Evergy Kansas Central, Evergy Metro and Evergy Missouri West combust large amounts of fossil fuels in the production of electricity, which results in significant emissions of carbon dioxide (CO 2) and other GHGs. Federal legislation regulates the emission of GHGs and numerous states and regions have adopted programs to stabilize or reduce GHG emissions. The Environmental Protection Agency (EPA), the Kansas Department of Health and Environment (KDHE) and the Missouri Department of Natural Resources (MDNR) regulate emissions under the Clean Air Act Amendments of 1990 (CAA), water under the Clean Water Act (CWA) and waste management under the Resource Conservation and Recovery Act (RCRA), among other laws and regulations. See Note 15 to the consolidated financial statements for additional information. Compliance with these laws, regulations and requirements requires significant capital and operating resources, and the failure to comply could result in substantial fines, injunctive relief and other sanctions. In addition, there is a risk of lawsuits alleging violations of environmental laws, regulations or requirements, claiming creation of a public nuisance or other matters, and seeking injunctions or monetary damages or other relief. 15

Environmental permits are subject to periodic renewal, which may result in more stringent permit conditions and limits. New facilities, or modifications of existing facilities, may require new environmental pennits or amendments to existing pem1its. Delays in the environmental pennitting process, public opposition and challenges, denials of permit applications, limits or conditions imposed in permits and the associated uncertainty may materially adversely affect the cost and timing of projects, and thus materially adversely affect the results of operations, financial position and cash flows of the Evergy Companies. In addition, compliance with environmental laws, regulations and requirements could alter the way assets are managed, which in turn could result in retiring assets earlier than expected, recording asset retirement obligations (AROs) or having a regulator disallow recovery of costs that had been prudently incurred in connection with those assets. Costs of compliance with environmental laws, regulations and requirements, or fines, penalties or negative lawsuit outcomes, if not recovered in rates from customers, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies. Financial Risks: Financial market disruptions or declines in the Evergy Companies' credit ratings may increase financing costs and limit access to the credit markets, which may adversely affect liquidity and financial results. The Evergy Companies rely on funds from operations and access to the capital and credit markets to fund capital expenditures and for working capital and liquidity. Disruption in capital or credit markets, increases in interest rates, deterioration in the financial condition of the financial institutions on which the Evergy Companies rely, credit rating downgrades, a decrease in the market price ofEvergy's common stock or a decrease or disappearance in the demand for debt securities issued by the Evergy Companies or subsidiaries could have material adverse effects on the Evergy Companies. These effects could include, among others: reduced access to capital and increased cost of borrowed funds and collateral requirements; dilution resulting from equity issuances at reduced prices; increased nuclear decommissioning trust and pension and other post-retirement benefit plan funding requirements; reduced ability to pay dividends; rate case disallowance of costs of capital; reductions in or delays of capital expenditures; and limitations in the ability of Evergy to provide credit support for its subsidiaries. Further, Evergy Kansas Central and Evergy Metro have outstanding tax-exempt bonds that may be put back to the respective issuer at the option of the holders, which could adversely impact liquidity. In addition, market disruption and volatility could have an adverse impact on Evergy's lenders, suppliers and other counter-parties or customers, causing them to fail to meet their obligations. Evergy is a holding company and relies on the earnings of its subsidiaries to meet its financial obligations. Evergy is a holding company with no significant operations of its own. The primary source of funds for payment of dividends to its shareholders and its other financial obligations is dividends paid to it by its direct subsidiaries, particularly Evergy Kansas Central, Evergy Metro and Evergy Missouri West. Evergy's subsidiaries are separate legal entities and have no obligation to provide Evergy with funds. The ability of Evergy's subsidiaries to pay dividends or make other distributions, and accordingly, Evergy's ability to pay dividends on its common stock and meet its financial obligations, principally depends on the earnings and cash flows, capital requirements and general financial position of its subsidiaries, as well as regulatory factors, financial covenants, general business conditions and other matters. In addition, the Evergy Companies are subject to certain corporate and regulat01y restrictions and financial covenants that could affect their ability to pay dividends. Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. In connection with approval of the merger in Missouri, each of Evergy Metro and Evergy Missouri West agreed to not pay dividends to Evergy if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. In connection with approval of the merger in Kansas, each of Evergy Kansas Central and Evergy Metro agreed to not pay dividends to Evergy if (i) the payment would result in an increase in the utility's debt level (excluding short-term debt and debt due within one year) above 60 percent of its total capitalization, absent approval from the KCC or (ii) if its credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investor Services. As described elsewhere in this Form 10-K, the Evergy Companies are also required to maintain a 16

consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00, which could restrict the amount of dividends the Evergy Companies are pennitted to pay. Evergy cannot guarantee dividends will be paid in the future or that, if paid, dividends will satisfy announced targets or investor expectations or be paid with the same frequency as in the past. In addition, from time to time Evergy may guarantee debt obligations of its subsidiaries. Under the financing agreements to which Evergy is a party, a guarantee of debt may be considered indebtedness for purposes of complying with financial covenants that dictate the extent to which Evergy can borrow money, and any guarantee payments could adversely affect Evergy's liquidity and ability to service its own debt obligations. Increasing costs associated with defined benefit retirement and postretirement plans, health care plans and other employee benefits could adversely affect Evergy's financial position and liquidity. Evergy maintains defined benefit retirement and other post-retirement employee benefit plans for certain current and former employees. The costs of these plans depend on a number of factors, including the rates of return on plan assets, the level and nature of the provided benefits, discount rates, the interest rates used to measure required minimum funding levels, changes in benefit design, changes in laws or regulations and the amount of any required or voluntary contributions to the plans. The Evergy Companies have substantial unfunded liabilities under these plans. Also, if the rate of retirements exceeds planned levels, these plans experience adverse market returns on investments or interest rates fall, required or voluntary contributions to the plans could be material. In addition, changes in accounting rules and assumptions related to future costs, returns on investments, interest rates and other actuarial assumptions, including projected retirements, could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies. The costs of providing health care benefits to employees and retirees have increased in recent years and may continue to rise in the future. Future legislative changes related to health care could also cause significant changes to benefit programs and costs. The increasing costs associated with health care plans could have a significant adverse impact on the results of operations, financial position and cash flows of the Evergy Companies. The use of derivative contracts could result in financial losses and impair liquidity. The Evergy Companies use derivative instruments, such as swaps, options, futures and forwards, to manage commodity and financial risks. Losses could be recognized as a result of volatility in the market values of these contracts, if a counterparty fails to perform or if the underlying transactions, which the derivative instruments are intended to hedge, fail to materialize. The valuation of these financial instruments can involve management's judgment or the use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts. Tax legislation and an inability to utilize tax credits could adversely impact financial results and liquidity. Tax laws and regulations can adversely affect, among other things, financial results, liquidity, credit ratings and the valuation of assets, such as deferred income tax assets. Over the last several years, income tax obligations have been reduced due to the use of bonus depreciation provisions that allow for an acceleration of deductions for tax purposes and IRS guidance on tax deductions for repairs. The Tax Cuts and Jobs Act of 2017 (TCJA) eliminates bonus depreciation for regulated utilities on new capital investments. The Evergy Companies regularly assess their ability to utilize tax benefits, including those in the fonn of net operating loss, tax credit and other tax carryforwards, that are recorded as deferred income tax assets on its balance sheets to determine whether a valuation allowance is necessary. A reduction in, or disallowance of, these tax benefits could have an adverse impact on the financial results and liquidity of the Evergy Companies. Additionally, changes in corporate tax rates or policy changes, such as those resulting from the TCJA, as well as any inability to generate enough taxable income in the future to utilize all tax benefits before they expire, could have an adverse impact on the financial results and liquidity of the Evergy Companies. In addition, the Evergy Companies construct and operate renewable energy facilities that generate tax credits that reduce federal income tax obligations. The amount of tax credits is dependent on several factors, including the amount of electricity produced and the applicable tax credit rate. A variety of operating and economic parameters, including transmission constraints, adverse weather conditions and breakdown or failure of equipment, could 17

significantly reduce these tax credits, which could have an adverse impact on the financial results of the Evergy Companies. The anticipated benefits of the merger may not be realized. The Evergy Companies have incun-ed, and expect to incur additional, significant costs associated with combining the operations of Great Plains Energy and Evergy Kansas Central. Additional unanticipated costs may also be incurred in the integration of the businesses of Great Plains Energy and Evergy Kansas Central. The Evergy Companies expect the merger to produce various benefits, including, among other things, operating efficiencies and cost savings. However, achieving the anticipated benefits is subject to a number of uncertainties, including: the ability to efficiently and effectively combine operations of the merged companies;

• general market and economic conditions;
• general competitive factors in the marketplace; and higher than expected costs required to achieve the anticipated benefits of the merger.

No assurance can be given that these benefits will be achieved or achieved in a timely manner. Integration costs could have a material adverse impact on the results of the Evergy Companies, and a failure to achieve the anticipated benefits of the merger could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies. In addition, the Evergy Companies may encounter difficulties in integrating the operations of the companies, including inconsistencies in standards, systems and controls, and management's focus and resources may be diverted from ordinary business activities and opportunities in order to focus on integration efforts. Any of the foregoing could have a material adverse effect on the Evergy Companies. The price ofEvergy common stock may experience volatility. The price of Evergy common stock may be volatile. Some of the factors that could affect the price ofEvergy common stock are Evergy's earnings; estimates or statements by the investment community; the ability of the Evergy Companies to implement their strategic plan or to realize the expected synergies and other benefits from the merger; the ability of Evergy to deploy capital; actions by regulators; and speculation in the press or investment community about the Evergy Companies' strategy, earnings per share or growth prospects, financial condition or results of operations. Individuals or entities, such as activist shareholders and special interest groups, may also seek to influence the Evergy Companies' strategic plan or take other actions that could disrupt the Evergy Companies' business, financial results or operations and could adversely impact Evergy's stock price. General market conditions and U.S. economic factors and political events unrelated to the performance of the Evergy may also affect Evergy's stock price. For these reasons, shareholders should not rely on historical trends in the price of Great Plains Energy or Evergy Kansas Central common stock to predict the price ofEvergy's common stock or its financial results. Evergy h£ts recorded goodwill that could become impaired and adversely affect financial results. As required by generally accepted accounting principles (GAAP), Evergy recorded a significant amount of goodwill on its balance sheet in connection with completion of the merger. Evergy assesses goodwill for impairment on an annual basis or whenever events or circumstances occur that would indicate a potential for impairment. If goodwill is deemed to be impaired, Evergy may be required to incur non-cash charges that could materially adversely affect its results of operations. Customer and Weather-Related Risks: Evergy 's results of operations, financial position and cash flows can be materially affected by changes in electricity consumption. Change in customer behaviors in response to energy efficiency programs, changing conditions and preferences or changes in the adoption of technologies could affect the consumption of energy by customers. Federal and state programs exist to influence the way customers use energy and regulators have mandates to promote energy efficiency. Conservation programs and customers' level of participation in the programs could impact the financial results of the Evergy Companies in adverse ways. 18

Technological advances, energy efficiency and other energy conservation measures have reduced and will continue to reduce customer electricity consumption. The Evergy Companies generate electricity at central station power plants to achieve economies of scale and produce electricity at a competitive cost. Self-generation and distributed generation technologies, including microturbines, wind turbines, fuel cells and solar cells, as well as those related to the storage of energy produced by these systems, have become economically competitive with the manner and price at which the Evergy Companies sell electricity. There is also a perception that generating or storing electricity through these technologies is more environmentally friendly than generating electricity with fossil fuels. Increased adoption of these technologies could reduce electricity demand and the pool of customers from whom fixed costs are recovered, resulting in under recovery of the fixed costs of the Evergy Companies. Increased self-generation and the related use of net energy metering, which allows self-generating customers to receive bill credits for surplus power, could put upward price pressure on remaining customers. If the Evergy Companies are unable to adjust to reduced electricity demand and increased self-generation and net energy metering, their financial condition and results of operations could be adversely affected. Changes in customer electricity consumption due to sustained financial market disruptions, downturns or sluggishness in the economy or other factors may also adversely affect the results of operations, financial position and cash flows of the Evergy Companies. Weather is a major driver of the results of operations, financial position and cash flows of the Evergy Companies and the Evergy Companies are subject to risks associated with climate change. Weather conditions directly influence the demand for and price of electricity. The Evergy Companies are significantly impacted by seasonality, and, due to energy demand created by air conditioning load, highest revenues are typically recorded in the third quarter. Unusually mild winter or summer weather can adversely affect sales. In addition, severe weather and events, including tornados, snow, fire, rain, flooding and ice storms, can be destructive and cause outages and property damage that can result in increased expenses, lower revenues and additional capital restoration costs. Storm reserves established by the Evergy Companies may be insufficient and rates may not be adjusted in a timely manner, or at all, to recover these costs. Additionally, because many of the Evergy Companies' generating stations utilize water for cooling, low water and flow levels can increase maintenance costs at these stations, result in limited power production and require modifications to plant operations. High water conditions can also impair planned deliveries of fuel to generating stations. Climate change may produce more frequent or severe weather events, such as st01ms, droughts or floods and could also impact the economic health of Evergy's service territories. An increase in the frequency or severity of extreme weather events or a deterioration in the economic health of Evergy's service territories could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies. In addition, policy, legal and regulatory efforts to influence climate change, such as efforts to reduce GHG emissions, impose a tax on emissions and create incentives for low-carbon generation and energy efficiency, could result in reduced sales and require significant costs to respond to such efforts. These efforts could also result in the early retirement of generation facilities, which could result in stranded costs if regulators disallow recovery of investments that were prudent when originally made. The Evergy Companies are targeting to achieve an 80% reduction of carbon emissions by 2050 from 2005 levels. The trajectory and timing of the goal could be impacted by various factors, including policy, legal or regulatory actions, a lack of technological advancements or other reasons. Any of the foregoing could adversely affect the results of operations, financial position and cash flows of the Evergy Companies and the market prices ofEvergy's common stock. Operational Risks: Operational risks may adversely affect the Evergy Companies. The operation of electric generation, transmission, distribution and information systems involves many risks, including breakdown or failure of equipment; aging infrastructure; operator error or contractor or subcontractor failure; problems that delay or increase the cost of returning facilities to service after outages; limitations that may be imposed by equipment conditions or environmental, safety or other regulatory requirements; fuel supply or fuel transportation reductions or interruptions; labor disputes; difficulties with the implementation or operation of 19

information systems; transmission scheduling constraints; and catastrophic events such as fires, floods, droughts, explosions, terrorism, severe weather, pandemics or other similar occurrences. Many of the Evergy Companies' generation, transmission and distribution resources are aged, which increases the risk of unplanned outages, reduced generation output and higher maintenance expense. Any equipment or system outage or constraint can, among other things, reduce sales, increase costs and affect the ability to meet regulatory service metrics, customer expectations and regulatory reliability and security requirements. The Evergy Companies have general liability and property insurance to cover a portion of their facilities, but such policies do not cover transmission or distribution systems, are subject to certain limits and deductibles and do not include business interruption coverage. Insurance coverage may not be available in the future at reasonable costs or on commercially reasonable terms, and the insurance proceeds received for any loss of, or any damage to, any facilities may not be sufficient to restore the loss or damage. These and other operating events may reduce revenues or increase costs, or both, and may materially affect the results of operations, financial position and cash flows of the Evergy Companies. Physical and cybersecurity breaches, criminal activity, terrorist attacks and other disruptions to facilities or information technology infrastructure could interfere with operations, expose the Evergy Companies or their customers or employees to a risk of loss, expose the Evergy Companies to legal or regulatory liability and cause reputational and other harm. The Evergy Companies rely upon information technology networks and systems to process, transmit and store electronic information, and to manage or support a variety of business processes and activities, including the generation, transmission and distribution of electricity, supply chain functions and the invoicing and collection of payments from customers. The Evergy Companies also use information technology networks and systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial repo1ting, legal and tax requirements. These networks and systems are in some cases owned or managed by third-party service providers. In the ordinary course of business, the Evergy Companies collect, store and transmit sensitive data including operating info1mation, proprietary business information and personal info1mation belonging to customers and employees. The Evergy Companies' information technology networks and infrastructure, as well as the networks and infrastructure belonging to third-party service providers are vulnerable to damage, disruptions or shutdowns due to attacks or breaches by hackers or other unauthorized third paities; error or malfeasance by one or more employees or service providers; software or hardware upgrades; additions or replacements; malicious software code; telecommunication failures; natural disasters or other catastrophic events. The occurrence of any of these events could, among other things, impact the reliability or safety of the Evergy Companies' generation, transmission and distribution systems; result in the erasure of data or render the Evergy Companies' equipment, or the equipment of third-party service providers, unusable; impact the Evergy Companies' ability to conduct business in the ordinary course; reduce sales; expose the Evergy Companies and their customers, employees and vendors to a risk ofloss or misuse of information; and result in legal claims or proceedings, liability or regulatory penalties, damage the Evergy Companies' reputation or otherwise harm their business. The Evergy Companies can provide no assurance that they will be able to identify and remediate all security or system vulnerabilities or that unauthorized access or error will be identified and remediated. The Evergy Companies are subject to laws and rules issued by multiple government agencies concerning safeguarding and maintaining the confidentiality of their security, customer and business information. For example, NERC has issued comprehensive regulations and standards surrounding the security of bulk power systems and is continually in the process of developing updated and new requirements with which the utility industry must comply. The NRC also has issued regulations and standards related to the protection of critical digital assets at nuclear power plants. Compliance with NERC and NRC rules and standards, and rules and standards promulgated by other regulatory agencies from time to time or future legislation, will increase the Evergy Companies' compliance costs and their exposure to the potential risk of violations of these rules, standards or future legislation, which includes potential financial penalties. Furthermore, the non-compliance of other utilities with applicable regulations or the 20

occunence of a serious security event at other utilities could result in increased regulation or oversight, both of which could increase the Evergy Companies' costs and impact their financial results. Additionally, the Evergy Companies cannot predict the impact that any future infonnation technology or malicious attack may have on the energy industry in general. The electric utility industry, both within the United States and internationally, has experienced physical and cybersecurity attacks on energy infrastructure such as power plants, substations and related assets in the past, and there will likely be more attacks in the future. The Evergy Companies' facilities and systems could be direct targets or indirect casualties of such attacks. The effects of such attacks could include disruption to the Evergy Companies' generation, transmission and distribution systems or to the electrical grid in general, reduced sales and could increase the cost of insurance coverage or result in a decline in the U.S. economy. Any of the foregoing could have a material adverse impact on the Evergy Companies' operations or financial results. The cost and schedule of capital projects may materially change and expected performance may not be achieved. The Evergy Companies' business is capital intensive and includes significant construction projects. The risks of any capital project include: actual costs may exceed estimated costs; regulators may disallow, limit or delay the recovery of all or part of the cost of, or a return on, a capital project; risks associated with the capital and credit markets to fund projects; delays in receiving, or failure to receive, necessary pennits, 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 oflabor 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. These and other risks could cause the Evergy Companies to defer or limit capital expenditures, materially increase the costs of capital projects, delay the in-service dates of projects, adversely affect the perfonnance of the projects and require the purchase of electricity on the wholesale market, at potentially more expensive prices, until the projects are completed. These risks may significantly affect the Evergy Companies' results of operations, financial position and cash flows. The Evergy Companies are exposed to risks associated with the ownership and operation of a nuclear generating unit, which could adversely impact the Evergy Companies' business and financial results. Evergy indirectly owns 94% of Wolf Creek, with Evergy Kansas South and Evergy Metro each owning 47% of the nuclear plant. The NRC has broad authority under federal law to impose licensing and safety-related requirements for the operation of nuclear generation facilities, including Wolf Creek. In the event of non-compliance, the NRC has the authority to impose fines, shut down the facilities, or both, depending upon its assessment of the severity of the situation, until compliance is achieved. Additionally, the non-compliance of other nuclear facility operators with applicable regulations or the occunence of a serious nuclear incident anywhere in the world could result in increased regulation of the nuclear industry. Such events could increase Wolf Creek's costs and impact the financial results of the Evergy Companies or result in a shutdown of Wolf Creek. An extended outage of Wolf Creek, whether resulting from NRC action, an incident at the plant or otherwise, could have a material adverse effect on the results of operations, financial position and cash flows of the Evergy Companies in the event replacement power and other costs are not recovered through rates or insurance. If a long-term outage occurred, the state regulatory commissions could reduce rates by excluding the Wolf Creek investment from rate base. Wolf Creek was constructed prior to 1986 and the age of Wolf Creek increases the risk of unplanned outages and results in higher maintenance costs. On an annual basis, Evergy Kansas South and Evergy Metro are required to contribute money to tax-qualified trusts that were established to pay for decommissioning costs at the end of the unit's life. The amount of contributions varies depending on estimates of decommissioning expenses and projected return on trust assets. If the actual return on trust assets is below the projected level or actual decommissioning costs are higher than estimated, Evergy 21

Kansas South and Evergy Metro could be responsible for the balance of funds required and may not be allowed to recover the balance through rates. The Evergy Companies are also exposed to other risks associated with the ownership and operation of a nuclear generating unit, including, but not limited to, (i) potential liability associated with the potential harmful effects on the environment and human health resulting from the operation of a nuclear generating unit, (ii) the storage, handling, disposal and potential release (by accident, through third-party actions or otherwise) of radioactive materials and (iii) unce1iainties with respect to contingencies and assessments if insurance coverage is inadequate. Under the structure for insurance among owners of nuclear generating units, Evergy Kansas South and Evergy Metro are also liable for potential retrospective premium assessments (subject to a cap) per incident at any commercial reactor in the country and losses in excess of insurance coverage. In addition, Wolf Creek is reliant on a sole supplier for fuel and related services. The supplier has in the past been the subject of Chapter 11 reorganization proceedings, and an extended outage of Wolf Creek could occur if the supplier is not able to perform under its contracts with Wolf Creek. Switching to another supplier could take an extended amount of time and would require NRC approval. An extended outage at Wolf Creek could affect the amount of Wolf Creek investment included in customer rates and could have a material impact on the Evergy Companies' financial results. The structure of the regional power market in which the Evergy Companies operate could have an adverse effect on their results of operations, financial position and cash flows. Evergy Kansas Central, Evergy Metro and Evergy Missouri West are members of the SPP regional transmission organization, and each has transferred operational authority (but not ownership) of their transmission facilities to the SPP. The SPP's Integrated Marketplace determines which generating units among market participants should run, within the operating constraints of a unit, at any given time for maximum cost-effectiveness. In the event that Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's generating units are not among the lowest cost generating units operating within the market, each could experience decreased levels of wholesale electricity sales. A market for Transmission Congestion Rights (TCR) is also included as part of the Integrated Marketplace. TCRs are financial instruments used to hedge transmission congestion charges. Evergy Kansas Central, Evergy Metro and Evergy Missouri West acquire TCRs for the purpose of hedging against transmission congestion charges. There is a risk that the entities could incorrectly model the amount ofTCRs needed, or that the TCRs acquired could be ineffective in hedging against transmission congestion charges, either of which could lead to increased purchased power costs. The rules governing the various regional power markets, including the SPP, may change from time to time and such changes could impact the costs and revenues of the Evergy Companies. Litigation Risks: The outcome of legal proceedings cannot be predicted. An adverse finding could have a material adverse effect on the Evergy Companies' results of operations, financial position and cash flows. The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinary course of their respective businesses. The outcome of these matters cannot be determined, nor, in many cases, can the liability that could potentially result from each case be reasonably estimated. The liability that the Evergy Companies may incur with respect to any of these cases may be in excess of amounts currently accrued and insured against with respect to such matters and could adversely impact the financial results for the Evergy Companies. ITEM lB. UNRESOLVED STAFF COMMENTS None. 22

ITEM2. PROPERTIES Generation Resources Unit Capability (MW) By Total Generation and Evergy Evergy Total Renewable Renewable Year Kansas Evergy Missouri Company Purchased Purchased Station Unit No. Location Completed Fuel Central Metro West Generation Power Power Renewable Generation: Central Plains* Kansas 2009 *Wind 99 99 99 Flat Ridge Kansas 2009 Wind 50 50 50 (e) 100 281 281 Meridian Way Kansas 2008 Wind 96 (e) 96 168 168 Post Rock Kansas 2012 Wind 201 (e) 201 199 199 200 (e) 200 208 Kingman 1 Kansas 2016 Wind 103 (e) 103 103 103 6 (e) 6 Cimarron II Kansas 2012 Wind 131 (f) 131 101 101 101 Spearville 2 Kansas 2010 Wind 48 48 48 IOI (f) 101 Gray County Kansas 2001 Wind 110 (g) llO 99 Waverly Kansas 2016 Wind 200 (f) 200 150 (f) 150 300 (h) 300 201 (h) 201 Pratt Kansas 2018 Wind 243 (h) 243 3 3 Prairie Queen Kansas 2019 Wind 200 (h) 200 60 60 Landfill St Joseph Landfill Missouri 2012 Gas 2 2 2 v'Crof11.Renew~b1ect;tierati9~:*** . 149 5 584 3,130 3;714 Nuclear: (b) 552 1,104 1,104 Total Nuclear: 552 552 1,104 1,104 23

Unit Capability (MW) By Total Generation and Evergy Evergy Total Renewable Renewable Year Kansas Evergy Missouri Company Purchased Purchased Station Unit No. Location Completed Fuel Central Metro West Generation Power Power Coal: Jeffrey Energy Center Kansas 1978, 1980 Steam Turbines 1-3 (b) &1983 Coal 2,011 175 2,186 Lawrence Energy Center Kansas Steam Turbines 4&5 1960, 1971 Coal La Cygne Kansas Steam Turbines 1&2 (b)(c) 1973, 1977 Coal 699 699 Iatan Missouri Steam Turbines 1&2 (b) 1980,2010 Coal - 981 288 Hawthorn Missouri 5 Total Coal: Gas and Oil: Emporia Energy Center Kansas Combustion Natural Turbines l 7 2008 °2009 Gas Gordon Evans Energy Center Kansas Combustion Natural Turbines 1-3 woo-2001 Gas Hutchinson Energy Center Kansas Combustion Natural Turbines 1-.3 1974 *Gas 4 1975 Spring Creek Energy Center Oklahoma Combustion Turbines 1-4 2001 Line Missouri 2-1, 2-2 Natural Combined Cycle &2-3 (b) 2001 Gas 196 196 196 Hawthorn Missouri Natural Combined Cycle 6/9 2000 Gas 225 225 225 Combustion Natural Turbines 7&8 Gas West Gardner Kansas Combustion Natural Turbines 1-4 2003 Gas 313 Osawatomie Kansas Combustion Natural Turbines 2003 Gas 76 76 76 24

Unit Capability (MW) By Total Generation and Evergy Evergy Total Renewable Renewable Year Kansas Evergy Missouri Company Purchased Purchased Station Unit No. Location Fuel Central Metro West Generation Power Power (continued): Ralph Green Missouri Combustion Turbines 3 1981 Nevada Missouri Combustion Turbines 1974 Lake Road Missouri Combustion 1951, 1958 Turbines* l -3 . & l9(i2 . 1974, 1989 5- 7 & 1990 Oil 104 104 104 Natural Steam Turbines 4 1967 Gas Northeast Missouri Combustion Turbines 11-18 - 1977 416 Black Start Unit 19 1985 Oil 2 2 2 Sou.th Harper Missouri Combustion Natural Turbines I -3 2005 Gas 313 313 313 Greenwood Energy Center Missouri Combustion Natural Turbines 1-4 1975 - 1979 Gas 237 237 237 Crossroads Energy Center Mississippi Combustion Natural Turbines I-4 2002 Gas 297 297 297 Total Gas and Oil 1,625 1,185 1,178 3,988 3,988 Total 5,803 4,130 1,646 11,579 3,130 14,709 (a) Capability (except for wind generating facilities) represents estimated 2020 net generating capacity. Capability for wind generating facilities represents the nameplate capacity. Due to the intennittent nature of wind generation, these facilities are associated with a total of 1,404 MW of accredited generating capacity pursuant to SPP reliability standards. (b) Share of a jointly owned unit. (c) In 1987, Evergy Kansas South entered into a sale-leaseback transaction involving its 50% interest in the La Cygne Unit 2. Evergy and Evergy Kansas Central consolidate the leasing entity as a variable interest entity (VIE). See Note 19 to the consolidated financial statements for more information. (d) 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. (e) Evergy Kansas Central renewable purchased power agreement. (f) Evergy Metro renewable purchased power agreement. (gJ Evergy Missouri West renewable purchased power agreement. (h) Evergy Metro and Evergy Missouri West renewable purchased power agreement. 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 25

transmission lines, 39,700 circuit miles of overhead distribution lines and 12,700 circuit miles of underground distribution lines in Missouri and Kansas. Evergy has all material franchise rights necessary to sell electricity within its retail service teITitory. Evergy's transmission and distribution systems are routinely monitored for adequacy to meet customer needs. Management believes the current systems are adequate to serve customers. General Evergy's generating plants are located on prope1ty owned (or co-owned) by the Evergy Companies, except for certain facilities that are located on easements or are contractually controlled. Evergy's service centers, electric substations and a portion of its transmission and distribution systems are located on property owned or leased by Evergy. Evergy's transmission and distribution systems are for the most pait located above or underneath highways, streets, other public places or property owned by others. Evergy believes that it has satisfacto1y rights to use those places or properties in the form of permits, grants, easements, licenses or franchise rights; however, it has not necessarily undertaken efforts to examine the underlying title to the land upon which the rights rest. Evergy's headquarters are located in leased office space. Substantially all of the fixed prope1ty and franchises of the Evergy Companic;s, which consist principally of electric generating stations, electric transmission and distribution lines and systems, and buildings (subject to exceptions, reservations and releases), are subject to mortgage indentures pursuant to which bonds have been issued and are outstanding. See Note 13 to the consolidated financial statements for more information. ITEM3. PROCEEDINGS Other Proceedings The Evergy Companies are parties to various lawsuits and regulatory proceedings in the ordinaiy course of their respective businesses. For information regarding material lawsuits and proceedings, see Notes 5 and 15 to the consolidated financial statements. Such information is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 26

PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES EVERGY, INC. Evergy's common stock is listed on the New York Stock Exchange under the symbol "EVRG." At February 24, 2020, Evergy's common stock was held by 22,695 shareholders of record. Performance Graph The following graph compares the performance of Evergy's common stock during the period that began on June 5, 2018 (the first day that Evergy's common stock traded), and ended on December 31, 2019, to the performance of the Standard & Poor's 500 Index (S&P 500) and the Standard & Poor's Electric Utility Index (S&P 500 Electric Utilities). The graph assumes a $100 investment in Evergy's common stock and in each of the indices at the beginning of the period and a reinvestment of dividends paid on such investments throughout the period. CUMULATIVE TOTAL RETURN Based on an initial investment of $100 on June 5, 2018, with dividends reinvested

           $150
           $140
           $130
           $120
           $110
           $100
            $90
            $80 6/5/2018                              12/31/2018                              12/31/2019 Evergy, Inc  -ii-S&P 500 Index       ~-S&P 500 Utilites Index 27

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 Securities Exchange Act of 1934, as amended (Exchange Act), during the three months ended December 31, 2019. Issuer Purchases of Equity Securities Maximum Total Number of Number of Shares (or Units) Shares (or Units) Purchased as that May Yet Be Total Number of Average Price Part of Publicly Purchased Under Shares (or Units) Paid per Share Announced Plans the Plans or Month Purchased<*> (or Unit) or Programs Programs<*l October 1 - 31 16,099,628 November 1 - 30 628,929 (b) 628,929 15,470,699 December l - 31 635,720 (b) 635,720 14,834,979 Total 1,264,649 1,264,649 14,834,979 (a) In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares of Evergy's common stock with no expiration date. See Note 18 to the consolidated financial statements for additional infonnation on Evergy's common stock repurchase program. (bl In November 2019, a portion of the September 2019 accelerated share repurchase (ASR) agreement was settled, which resulted in the delivery of 628,929 additional shares of Evergy common stock at no additional cost. The remainder of the September 2019 ASR agreement was settled in December 2019, which resulted in the delivery of 635,720 additional shares of Evergy common stock at no additional cost. In total, 7,815,204 shares were delivered under the September 2019 ASR agreement at an average price paid per share of $64.03. Dividend Restrictions For information regarding dividend restrictions, see Note 18 to the consolidated financial statements. ITEM 6. SELECTED FINANCIAL DATA Year Ended December 31 2019 Evergy (dollars in millions except per share amounts) revenues $ 5,148 $ 4,276 $ $ 2,562 $ 2,459 Net income $ 686 $ 546 $ 337 $ 361 $ 302 attributable to Inc. 670 $ 536 $ 324 $ 347 $ 292 Basic earnings per common share $ 2.80 $ 2.50 $ 2.27 $ 2.43 $ 2.11 Diluted earnings common share 2.79 2.50 2.27 $ 2.43 $ 2.09 Total assets at year end $ 25,976 $ 25,598 $ 11,624 $ 11,487 $ 10,706 Total long-term obligations at year end Ca) $ 9,200 $ $ $ 3,699 $ 3,379 Cash dividends common share $ 1.93 $ 1.735 $ 1.60 $ 1.52 $ 1.44 Includes long-term debt, current maturities oflong-term debt, finance leases, operating leases, long-term debt ofVIEs and current maturities of long-term debt ofVIEs. Obligations related to operating leases are only included beginning in 2019 due to Evergy's adoption of Topic 842, Leases. See Note I to the consolidated financial statements for additional information. (b) On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results from the date of the closing of the merger and thereafter. Evergy amounts for 2017, 2016 and 2015 reflect the results of operation and financial position of Evergy Kansas Central as the accounting acquirer in the merger transaction. 28

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following combined Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the consolidated financial statements and accompanying notes in this combined annual report on Fonn 10-K. None of the registrants make any representation as to information related solely to Evergy, Evergy Kansas Central or Evergy Metro other than itself. The following MD&A generally discusses 2019 and 2018 items and year-to-year comparisons between 2019 and 2018. Discussions of 2017 items and year-to-year comparisons between 2018 and 2017 can be found in MD&A in Pait II, Item 7, of the Evergy Companies' combined annual report on Form 10-K for the fiscal year ended December 31,2018. EVERGY, INC. EXECUTIVE

SUMMARY

Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.

• Evergy Kansas Central, formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, formerly known as Kansas Gas and Electric Company.
• Evergy Metro, formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
• Evergy Missouri West, formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
• Evergy Transmission Company, formerly known as GPE Transmission Holding Company, LLC, owns 13.5% of Transource with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of AEP. Transource is focused on the development of competitive electric transmission projects.

Evergy Transmission Company accounts for its investment in Transource under the equity method. Evergy Kansas Central also owns a 50% interest in Prairie Wind, which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the SPP. Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method. Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 14,700 MWs of owned generating capacity and renewable purchased power agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). 29

Strategy Evergy expects to continue operating its integrated utilities within the currently existing regulato1y frameworks. Evergy's objectives are to deliver value to shareholders through earnings and dividend growth; serve customers and communities with cost-effective, reliable and clean energy; and maintain a rewarding and challenging work environment for employees. Significant elements of Evergy's strategy to achieve these objectives include:

• the realization of a total of approximately $595 million of potential net savings over the first five years of operation of the combined company, which formed in June 2018, resulting from synergies that are expected to be created as a result of the merger;
• anticipated rate base investment of approximately $7 .6 billion from 2020 through 2024; and
• the reduction of carbon emissions by 80% by 2050 from 2005 levels through the continued growth of Evergy's renewable energy portfolio and the retirement of older and less efficient fossil fuel plants. See "Transforming Evergy's Generation Fleet" in Part I, Item 1, Business, for additional information.

In March 2020, the Evergy Board announced the creation of a Strategic Review & Operations Committee that will explore ways to enhance long-term shareholder value (taking into account applicable legal and regulatory requirements and any other relevant considerations), including through a potential strategic combination or an enhanced long-term standalone operating plan and strategy. The committee is expected to complete its review and make a recommendation to Evergy's Board in the first half of 2020. See "Cautiona1y Statements Regarding Certain Forward-Looking Information" and Part I, Item IA, Risk Factors, for additional information. Common Stock Repurchase Program In July 2018, the Evergy Board authorized the repurchase of up to 60 million shares ofEvergy's common stock. Evergy has utilized various methods to effectuate the share repurchase program since its authorization, including the repurchase of shares through ASR agreements and open market transactions. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020. See Note 18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program. Great Plains Energy and Evergy Kansas Central Merger Evergy was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. As a result of the closing of the merger transactions, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock, resulting in the issuance of 128.9 million shares. Additionally, each outstanding share of Evergy Kansas Central common stock was converted into 1 share of Evergy common stock. Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains 30

Energy's direct subsidiaries have been included in Evergy's results of operations from June 4, 2018, the date of the closing of the merger, and thereafter. See Note 2 to the consolidated financial statements for more information regarding the merger. Regulatory Proceedings See Note 5 to the consolidated financial statements for infonnation regarding regulatory proceedings. Earnings Overview The following table summarizes Evergy's net income and diluted earnings per share (EPS). 2019 2018 Change (millions, except per share amounts) Net income attributable to Evergy, Inc. $ 669.9 $ 535.8 $ 134.1 Earnings per common share, diluted 2.79 2.50 0.29 Net income attributable to Evergy, Inc. increased in 2019 compared to 2018, primarily due to the inclusion of Evergy Metro's and Evergy Missouri West's earnings in the first five months of 2019, merger-related costs and reductions ofrevenue for customer bill credits incurred in June 2018 following the consummation of the merger, lower operating and maintenance expenses at fossil-fuel generating units and lower administrative and general expenses, partially offset by lower retail sales driven by unfavorable weather and higher depreciation expense. Diluted EPS increased in 2019 compared to 2018, primarily due to the increase in net income attributable to Evergy, Inc. discussed above, partially offset by a higher number of diluted weighted average common shares outstanding in 2019, which diluted EPS by $0.34 for 2019. For additional information regarding the change in net income, refer to the Evergy Results of Operations section within this MD&A. Adjusted Earnings (non-GAAP) and Adjusted EPS (non-GAAP) Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for 2019 were $694.0 million or $2.89 per share, respectively. For 2018, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were $680.9 million or $2.54 per share, respectively. In addition to net income attributable to Evergy, Inc., diluted EPS, pro forma net income attributable to Evergy, Inc. and pro forma diluted EPS as prepared in accordance with GAAP, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without the costs and/or benefits resulting from rebranding, voluntary severance and significant items related to the Great Plains Energy and Evergy Kansas Central merger. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to enhance an investor's overall understanding ofresults. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report. 31

The following table provides a reconciliation between net income attributable to Evergy, Inc., diluted EPS, pro forma net income attributable to Evergy, Inc. and pro forma diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP). Earnings Earnings (Loss) per (Loss) per Earnings Diluted Earnings Diluted (Loss) Share (Loss) Share 2019 2018 (millions, except per share amounts) Net income attributable to Evergy, Inc. $ 669.9 $ 2.79 $ 535.8 $ 2.50 Pro forma adjustments<al: Qreatplains Energy earnings prior to merger 94.4 0.35 Great Plains Energy shares prior to merger n/a n/a (0.50) Non-recurtingnierger costs and other 84,1 0.32 Pro forma net income attributable to Evergy, Inc. $ 669.9 $ 2.79 $ 714.3 $ 2.67 Non-GAAP reconciling*iten1s: Rebranding costs, pre-tax<b) 12.1 0.05 Voluntacyseverancecosts, pre:.taxCc) 19.8 0.08 23.5 0.09 Composite tax rate change<d) (52.6) (0.20) (0.11) Inventory write-off at retiring generating units, pre-tax<!) 31.0 0.12 Adjusted earnings (non-GAAP) $ 694.0 $ 2.89 $ 680.9 $ 2.54 (a) Reflects pro forma adjustments made in accordance with Article 11 of Regulation S-X and ASC 805 - Business Combinations. See Note 2 to the consolidated financial statements in the Evergy Companies' combined 2018 annual report on Form 10-K for further information regarding these adjustments. (bl Reflects external costs incurred to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy and are included in operating and maintenance expense on the consolidated statements of comprehensive income. (cl Reflects severance costs incurred associated with certain voluntary severance programs at the Evergy Companies and are included in operating and maintenance expense on the consolidated statements of comprehensive income. (dl Reflects the revaluation ofEvergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018 and are included in income tax expense on the consolidated statements of comprehensive income. (e) Reflects the portion of the $47.8 million deferral of merger transition costs to a regulatory asset in June 2018 that related to costs incurred prior to 2018. The remaining merger transition costs included within the $47.8 million deferral were both incurred and deferred in 2018 and did not impact earnings. This item is included in operating and maintenance expense on the consolidated statements of comprehensive income. (l) Reflects obsolete inventory write-offs for Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordon Evans Energy Center, Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station and are included in operating and maintenance expense on the consolidated statements of comprehensive income. (g) Reflects an income tax effect calculated at a 26.1 % statutory rate, with the exception of certain non-deductible items. Wolf Creek Refueling Outage Wolf Creek's most recent refueling outage began in September 2019 and the unit returned to service in November 2019. Wolf Creek's next refueling outage is planned to begin in the first quarter of 2021. ENVIRONMENTAL MATTERS See Note 15 to the consolidated financial statements for information regarding environmental matters. RELATED PARTY TRANSACTIONS See Note 17 to the consolidated financial statements for information regarding related party transactions. 32

CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. Management considers an accounting estimate to be critical if it requires assumptions to be made that were unce1iain at the time the estimate was made and changes in the estimate or different estimates that could have been used could have a material impact on Evergy's results of operations and financial position. Management has identified the following accounting policies as critical to the understanding of Evergy's results of operations and financial position. Management has discussed the development and selection of these critical accounting policies with the Audit Committee of the Evergy Board. Pensions Evergy incurs significant costs in providing non-contributory defined pension benefits. The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience. Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments. In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates ofretum on plan assets and the discount rates used in determining the projected benefit obligation and pension costs. The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan. The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation. These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events. See Note 10 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs. The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans. Each sensitivity reflects the impact of the change based on a change in that assumption only. Projected 2020 Change in Benefit Pension Actuarial assumption Assumption Obligation Expense (millions) Discount rate 0.5% decrease 223.4 22.5 Rate of compensation 0.5% decrease (45.7) (9.0) Pension expense for Evergy Kansas Central, Evergy Metro and Evergy Missouri West is recorded in accordance with rate orders from the KCC and MPSC. The orders allow the difference between pension costs under GAAP and pension costs for ratemaking to be recorded as a regulatory asset or liability with future ratemaking recovery or refunds, as appropriate. In 2019, Evergy's pension expense was $131.3 million under GAAP and $168.7 million for ratemaking. The impact on 2020 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 33

liability for future ratemaking treatment. See Note 10 to the consolidated financial statements for additional information regarding the accounting for pensions. Market conditions and interest rates significantly affect the future assets and liabilities of the plan. It is difficult to predict future pension costs, changes in pension liability and cash funding requirements due to the inherent uncertainty of market conditions. Revenue Recognition Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice. Revenues recorded include electric services provided but not yet billed by Evergy. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. Evergy's estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. Evergy's unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 4 for the balance of unbilled receivables for Evergy as of December 31, 2019 and 2018. Regulatory Assets and Liabilities Evergy has recorded assets and liabilities on its consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded under GAAP. Regulatory assets represent incmTed costs that are probable of recovery from future revenues. Regulat01y liabilities represent future reductions in revenues or refunds to customers. Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to Evergy; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the cun-ent period results of operations. Evergy's continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restrncturing and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to all or a portion of Evergy's operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. See Note 5 to the consolidated financial statements for additional information. Impairments of Assets and Goodwill Long-lived assets are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable as prescribed under GAAP. Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the caizying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The annual impairment test for the $2,336.6 million of goodwill from the Great Plains Energy and Evergy Kansas Central merger was conducted on May 1, 2019. The fair value of the reporting unit substantially exceeded the canying amount, including goodwill. As a result, there was no impairment of goodwill. The determination of fair value for the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques 34

were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit, which involves a significant amount of management judgment. The discounted cash flow analysis is most significantly impacted by two assumptions: estimated future cash flows and the discount rate applied to those cash flows. Management detennines the appropriate discount rate to be based on the reporting unit's weighted average cost of capital (WACC). The WACC takes into account both the return on equity authorized by the KCC and MPSC and after-tax cost of debt. Estimated future cash flows are based on Evergy's internal business plan, which assumes the occunence of certain events in the future, such as the outcome of future rate filings, future approved rates of return on equity, anticipated returns of and earnings on future capital investments, continued recovery of cost of service and the renewal of certain contracts. Management also makes assumptions regarding the run rate of operations, maintenance and general and administrative costs based on the expected outcome of the aforementioned events. Should the actual outcome of some or all of these assumptions differ significantly from the cunent assumptions, revisions to current cash flow assumptions could cause the fair value of the Evergy reporting unit under the income approach to be significantly different in future periods and could result in a future impairment charge to goodwill. The market approach analysis is most significantly impacted by management's selection of relevant peer companies as well as the determination of an appropriate control premium to be added to the calculated invested capital of the rep01ting unit, as control premiums associated with a controlling interest are not reflected in the quoted market price of a single share of stock. Management determines an appropriate control premium by using an average of control premiums for recent acquisitions in the industry. Changes in results of peer companies, selection of different peer companies and future acquisitions with significantly different control premiums could result in a significantly different fair value of the Evergy reporting unit. Income Taxes Income taxes are accounted for using the asset/liability approach. Defened tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Defened investment tax credits are amortized ratably over the life of the related property. Defened tax assets are also recorded for net operating losses, capital losses and tax credit carryforwards. Evergy is required to estimate the amount of taxes payable or refundable for the cunent year and the defened tax liabilities and assets for future tax consequences of events reflected in Evergy's consolidated financial statements or tax returns. Actual results could differ from these estimates for a variety of reasons including changes in income tax laws, enacted tax rates and results of audits by taxing authorities. This process also requires management to make assessments regarding the timing and probability of the ultimate tax impact from which actual results may differ. Evergy records valuation allowances on defened tax assets if it is detennined that it is more likely than not that the asset will not be realized. See Note 20 to the consolidated financial statements for additional information. Asset Retirement Obligations Evergy has recognized legal obligations associated with the disposal oflong-lived assets that result from the acquisition, construction, development or normal operation of such assets. Concunent with the recognition of the liability, the estimated cost of the ARO incuned at the time the related long-lived assets were either acquired, placed in service or when regulations establishing the obligation became effective is also recorded to property, plant and equipment, net on the consolidated balance sheets. The recording of AROs for regulated operations has no income statement impact due to the defenal of the adjustments through the establishment of a regulato1y asset or an offset to a regulatory liability. Evergy initially recorded AROs at fair value for the estimated cost to decommission Wolf Creek (94% indirect share), retire wind generating facilities, dispose of asbestos insulating material at its power plants, remediate ash disposal ponds and close ash landfills, among other items. ARO refers to a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement may be conditional on a future event that may or may not be within the control of the entity. In determining Evergy's AROs, assumptions are made regarding probable future disposal costs and the timing of their occunence. A change in these assumptions could have a significant impact on Evergy's AROs reflected on its consolidated balance sheets. 35

As of December 31, 2019 and 2018, Evergy had recordedAROs of $674.1 million and $687.1 million, respectively. See Note 7 to the consolidated financial statements for more information regarding Evergy's AROs. Evergy's results of operations and financial position are affected by a variety of factors including rate regulation, fuel costs, weather, customer behavior and demand, the economy and competitive forces. Substantially all of Evergy's revenues are subject to state or federal regulation. This regulation has a significant impact on the price the Evergy Companies charge for electric service. Evergy's results of operations and financial position are affected by its ability to align overall spending, both operating and capital, within the frameworks established by its regulators. Wholesale revenues are impacted by, among other factors, demand, cost and availability of fuel and purchased power, price volatility, available generation capacity, transmission availability and weather. The Evergy Companies primarily use coal and uranium for the generation of electricity for their customers and also purchase power through purchase power agreements or on the open market. The prices for fuel used in generation or the market price of purchased power can fluctuate significantly due to a variety of factors including supply, demand, weather and the broader economic environment. Evergy Kansas Central, Evergy Metro and Evergy Missouri West have fuel recovery mechanisms in their Kansas and Missouri jurisdictions, as applicable, that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in net energy costs from the amount set in base rates without a general rate case proceeding. Weather significantly affects the amount of electricity that Evergy's customers use as electricity sales are seasonal. As summer peaking utilities, the third quarter typically accounts for the greatest electricity sales by the Evergy Companies. Hot summer temperatures and cold winter temperatures prompt more demand, especially among residential and commercial customers, and to a lesser extent, industrial customers. Mild weather reduces customer demand. Energy efficiency investments by customers and the Evergy Companies also can affect the demand for electric service. Through the Missouri Energy Efficiency Investment Act (MEEIA), Evergy Metro and Evergy Missouri West offer energy efficiency and demand side management programs to their Missouri retail customers and recover program costs, throughput disincentive, and as applicable, ce1iain earnings opportunities in retail rates through a rider mechanism. The Evergy Companies' taxes other than income taxes, of which property taxes are a significant component, can fluctuate significantly due to a variety of factors, including changes in taxable values and property tax rates. Evergy Kansas Central and Evergy Metro's Kansas jurisdiction have property tax surcharges that allow them to defer and subsequently recover or refund, through customer rates, substantially all of the variance in property tax costs from the amounts set in base rates without a general rate case proceeding. 36

The following table summarizes Evergy's comparative results of operations. 2019 Change 2018 Change 2017 (millions)

                                                              $ 5,147.8    $    871.9 Fuel and purchased power                                         1,265.0        186.3     1,078.7        537.2        541.5 S~P network transmission costs                                     251.3         (8.6)      259:9 Operating and maintenance                                        1,218.5        102.7     1,115.8        552.3        563.5 I>eJ'.)r~ciat.ion anti aniortipition Taxes other than income tax                                        365.5         96.4        269.1       101.5        167.6 In<:()roe.frotn.operations                                     l,185:8       252,2        933.6       254.8***      678.8 Other expense, net                                                  (39.0)       15.4        (54.4)      (27.6)       (26.8)

Int~iest 374.0 279,6 Income tax expense 97.0 38.0 59.0 (92.2) 151.2 £guify111~arnings'()fequitymet.hodinveste~tn~tof in.come taxes . . . .. . Net income 685.6 139.6 209.5 336.5 L:ess: Netincome,attributableto noncontrolling interests

  ,,, ,,,' ',, ,'" ,' \,'   '   '  ;, ',,'      ,   ,, ' '

15. .. 10.2 . (2,4) 12:6 Net income attributable to Inc. $ 669.9 134.1 $ 535.8 $ 211.9 $ 323.9 Evergy Utility Gross Margin and MWh Sales Utility gross margin is a financial measure that is not calculated in accordance with GAAP. Utility gross margin, as used by the Evergy Companies, is defined as operating revenues less fuel and purchased power costs and amounts billed by the SPP for network transmission costs. Expenses for fuel and purchased power costs, offset by wholesale sales margin, are subject to recovery through cost adjustment mechanisms. As a result, changes in fuel and purchased power costs are offset in operating revenues with minimal impact on net income. In addition, SPP network transmission costs fluctuate primarily due to investments by SPP members for upgrades to the transmission grid within the SPP RTO. As with fuel and purchased power costs, changes in SPP network transmission costs are mostly reflected in the prices charged to customers with minimal impact on net income. See Note 3 to the consolidated financial statements for additional information regarding the manner in which Evergy reflects SPP revenues and expenses.

Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods compared with operating revenues because utility gross margin excludes the revenue effect of fluctuations in these expenses. Utility gross margin is used internally to measure performance against budget and in reports for management and the Evergy Board. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies. 37

The following tables summarize Evergy's utility gross margin and MWhs sold. Utility Gross Margin 2019 Change 2018 Change 2017 Retail revenues (millions) Residential $ 1,908.1 $ 329.3 $ 1,578.8 $ 777.5 $ 801.3 Commercial 1,781.6 425.2 1,356.4 644.7 711.7 Industrial 621.6 93.8 527,8 114.9 412.9 Other retail revenues 47.1 16.5 30.6 7.8 22.8 Total electric retail 4,358.4 864.8 3,493.6 1,544.9 1,948.7 Wholesale revenues 327.5 (76.9) 404.4 73.2 331.2

.Transmission revenues                                                 309.2               1.1          308.1           23.3        284.8 Other revenues                                                         152.7              82.9           69.8           63.5           6.3 Operating revenues                                                5,147.8             871.9        4,275.9        1,704.9      2;571.0 Fuel and purchased power                                            (1,265.0)           (186.3)      (1,078.7)        (537.2)      (541.5)

SPP network transmission costs (251.3) 8.6 (259.9) (12.0) (247.9) Utility gross margin (a) $ 3,631.5 $ 694.2 $ 2,937.3 $ 1,155.7 $ 1,781.6 (a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above. MWh Sales 2019 Change 2018 Change 2017 Retail MWh Sales (thousands) Residential ~,014 Commercial 18,295 4,166 14,129 6,761 7,368 fodustri.al. 8,570 7,426 1,737 5,p89 Other retail revenues 139 29 110 37 73 Total electric retail Wholesale revenues 14,398 587 13,811 3,465 10,346 Operating revenues 56,894 8,940 47,954 18,315 29,639 Evergy's utility gross margin increased $694.2 million in 2019 compared to 2018 driven by:

• a $674.4 million increase due to the inclusion ofEvergy Metro's and Evergy Missouri West's utility gross margin in the first five months of 2019;
• a $59.7 million increase in revenue due to one-time bill credits recorded by Evergy Kansas Central, Evergy Metro and Evergy Missouri West in June 2018 as a result of conditions in the KCC and MPSC merger orders; and
• a $41.6 million increase from new Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail rates effective in 2018, net of a $124.2 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the TCJA; partially offset by
• a $53.0 million decrease primarily due to lower Evergy Kansas Central, Evergy Metro and Evergy Missouri West retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 16%;
• a $12.9 million decrease related to Evergy Kansas Central's transmission delivery charge (TDC) rider;
• a $10.2 million decrease in revenue related to the granting of an Accounting Authority Order (AAO) by the MPSC in October 2019 requiring Evergy Missouri West to record a regulatory liability for the estimated amount of revenues it has collected from customers for certain costs related to Sibley Station since its retirement in November 2018; and
• a $5.4 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

38

Operating and Maintenance Evergy's operating and maintenance expense increased $102.7 million in 2019 compared to 2018 primarily driven by:

• a $279.9 million increase in operating and maintenance expense due to the inclusion of Evergy Metro's and Evergy Missouri West's operating and maintenance expenses in the first five months of 2019;

   *   $12.1 million ofrebranding costs incurred in 2019 to rebrand the legacy Westar Energy and KCP&L utility brands to Evergy; and
   *   $11.8 million of Evergy Kansas Central, Evergy Metro and Evergy Missouri West voluntary severance expenses incurred in 2019; partially offset by
   *   $75.8 million of merger-related costs incurred in 2018, consisting of:

0

                $51.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; 0
                $47.9 million of Evergy Kansas Central and Evergy Metro voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Evergy Kansas Central equity compensation awards in accordance with the Amended Merger Agreement; and 0   $24.7 million of unconditional charitable contributions and community support recorded by Evergy in accordance with conditions in the KCC and MPSC merger orders; partially offset by 0

a $47.8 million decrease in operating and maintenance expense due to the deferral of merger transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central, Evergy Metro and Evergy Missouri West in accordance with the KCC and MPSC merger orders;

• a $62.1 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:

0 a $15.0 million decrease due to the retirement of Evergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center, Units 1 and 2 at Gordan Evans Energy Center and Evergy Metro's Montrose Station and Evergy Missouri West's Sibley Station in the fourth quarter of 2018; 0 $31.0 million ofEvergy Kansas Central, Evergy Metro and Evergy Missouri West obsolete inventory write-offs at retiring fossil-fuel units in 2018; 0

                $5 .2 million of volunta1y severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central, Evergy Metro and Evergy Missouri West related to their Local 1523 and Local 412 union voluntary exit programs; and 0   a $3.7 million decrease due to an extended maintenance outage at Evergy Metro's Iatan No. 2 in 2018; partially offset by 0   an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the Jeffrey Energy Center (JEC) lease extension, see Note 5 to the consolidated financial statements;

• a $35.6 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $15 .3 million decrease in labor and employee benefits expense primarily due to lower employee headcount and Evergy Kansas Central pension and post-retirement costs in 2019 and $10.6 million of voluntary severance expenses incurred in the third quarter of 2018 by Evergy Kansas Central and Evergy Metro related to a Wolf Creek voluntary exit program;
• a $9.5 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek;
• a $9 .3 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level ofEvergy Kansas Central vegetation management activity in 2018; and 39
• a $5.4 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue.

Depreciation and Amortization Evergy's depreciation and amortization increased $242.9 million in 2019 compared to 2018 driven by:

• a $173.4 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's depreciation expense in the first five months of 2019;
• a $43.0 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's and Evergy Metro's rate cases effective in 2018; and
• a $26.5 million increase primarily due to capital additions at Evergy Kansas Central and Evergy Metro.

Taxes Other Than Income Tax Evergy's taxes other than income tax increased $96.4 million in 2019 compared to 2018 primarily driven by:

• a $75.7 million increase due to the inclusion ofEvergy Metro and Evergy Missouri West amounts in the first five months of 2019; and
• a $22.9 million increase primarily due to increased Evergy Kansas Central property taxes.

Other Expense, Net Evergy's other expense, net decreased $15.4 million in 2019 compared to 2018 primarily driven by:

• a $12.4 million decrease due to recording higher Evergy Kansas Central corporate-owned life insurance (COLI) benefits in 2019;
• a $6.3 million decrease due to lower Evergy Kansas Central and Evergy Metro pension non-service costs in 20I9;and
• a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; partially offset by
• a $9.5 million increase due to the inclusion of Evergy Metro and Evergy Missouri West amounts in the first five months of 2019.

Interest Expense Evergy's interest expense increased $94.4 million in 2019 compared to 2018 primarily driven by:

• a $77.2 million increase due to the inclusion ofEvergy Metro's and Evergy Missouri West's interest expense and Evergy's interest expense associated with the assumption of legacy Great Plains Energy debt in the first five months of 2019;
• a $14.5 million increase due to Evergy's issuance of $1.6 billion of senior notes in September 2019; and
• a $7.7 million increase primarily due to Evergy's borrowings under its $1.0 billion term loan credit agreement in 2019; partially offset by
• a $10.1 million net decrease due to the repayment ofEvergy Metro's $400.0 million of7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $19.8 million, partially offset by a

       $9.7 million increase due to Evergy Metro's issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019.

Income Tax Expense Evergy's income tax expense increased $38.0 million in 2019 compared to 2018 primarily driven by:

• a $52.6 million increase related to the revaluation of Evergy Kansas Central's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in 2018; and
• an $18.9 million increase due to higher Evergy Kansas Central pre-tax income; partially offset by 40
• a $39.0 million decrease due to flow-through items primarily driven by higher am01tization of excess deferred income taxes.

EVERGY SIGNIFICANT BALANCE SHEET CHANGES (December 31, 2019 compared to December 31, 2018)

• Evergy's cash and cash equivalents decreased $13 7.1 million primarily due to the repurchase of common stock in connection with Evergy's share repurchase program. See Note 18 to the consolidated financial statements for additional information on Evergy's share repurchase program.
• Evergy's income tax receivable increased by $17.5 million primarily due to the $37.9 million reclassification ofEvergy's 2019 alternative minimum tax (AMT) credits from deferred income taxes, partially offset by the receipt of $18.6 million in 2019 related to Evergy's 2018 AMT tax credit.
• Evergy's regulatory assets - current decreased by $72.2 million primarily due to fuel recovery mechanism recoveries exceeding under-collections at Evergy Metro and Evergy Missouri West by $30. 7 million and

        $24.3 million in 2019, respectively.

• Evergy's other assets increased by $115.0 million primarily due to $104.5 million of operating lease right-of-use assets, as of December 31, 2019, that were recorded as a result of Topic 842, Leases in 2019.

See Note 1 to the consolidated financial statements for additional information on the new lease standard.

• Evergy's current maturities oflong-term debt decreased by $454.3 million primarily due to the repayment ofEvergy Metro's $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019.
• Evergy's notes payable and commercial paper decreased $176.7 million primarily due to a $162.5 million decrease at Evergy Kansas Central due to the repayment of commercial paper with funds from operations and a $56.6 million decrease at Evergy Missouri West primarily due to the repayment of commercial paper with the proceeds from its issuance of $100.0 million of 3.74% Senior Notes in March 2019, partially offset by a $20.0 million increase at Evergy, Inc. due to cash borrowings under its master credit facility.
• Evergy's accounts payable increased $77 .3 million primarily due to the timing of cash payments.
• Evergy's regulatory liabilities - current decreased $46.9 million primarily due to a $70.9 million refund to customers of tax reform benefits at Evergy Kansas Central, Evergy Metro and Evergy Missouri West in 2019, paitially offset by a $30.2 million increase in Evergy Kansas Central's regulatory liability for its fuel recovery mechanism due to recoveries exceeding under-collections.
• Evergy's other liabilities - current increased $48.9 million primarily due to a $23.7 million increase in funds received from customers for the construction of transmission assets at Evergy Kansas Central and

         $15.6 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.

• Evergy's long-tenn debt increased by $2,110.4 million primarily due to the issuance ofEvergy's $1.6 billion of senior notes in September 2019 and Evergy Metro's issuance of $400.0 million of 4.125%

Mortgage Bonds in March 2019.

• Evergy's other liabilities - long-term increased $104.0 million primarily due to $82.4 million of operating lease liabilities, as of December 31, 2019, that were recorded as a result of the adoption of Topic 842, Leases in 2019. See Note 1 to the consolidated financial statements for additional information on the new lease standard.
• Evergy's common stock decreased $1,614.8 million primarily due to the repurchase of common stock for a total cost of approximately $1,628.7 million in 2019 pursuant to Evergy's share repurchase program.

See Note 18 to the consolidated financial statements for additional information on Evergy's share repurchase program. 41

LIQUIDITY AND CAPITAL RESOURCES Evergy relies primarily upon cash from operations, short-term borrowings, debt and equity issuances and its existing cash and cash equivalents to fund its capital requirements. Evergy's capital requirements primarily consist of capital expenditures, payment of contractual obligations and other commitments, the payment of dividends to shareholders and the repurchase of common shares. Capital Sources Cash Flows from Operations Evergy's cash flows from operations are driven by the regulated sale of electricity. These cash flows are relatively stable but the timing and level of these cash flows can vary based on weather and economic conditions, future regulatory proceedings, the timing of cash payments made for costs recoverable under regulatory mechanisms and the time such costs are recovered, and unanticipated expenses such as unplanned plant outages and stonns. Short-Term Borrowings As of December 31, 2019, Evergy had $1.9 billion of available borrowing capacity from its master credit facility. The available borrowing capacity under the master credit facility consisted of $429.3 million for Evergy, Inc., $736.6 million for Evergy Kansas Central, $400. 7 million for Evergy Metro and $354.5 million for Evergy Missouri West. Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's borrowing capacity under the master credit facility also supports their issuance of commercial paper. See Note 12 to the consolidated financial statements for more information regarding the credit facility. Along with cash flows from operations and receivable sales facilities, Evergy generally uses borrowings under its master credit facility and the issuance of commercial paper to meet its day-to-day cash flow requirements. Evergy also had short-term borrowings under a term loan credit agreement that was repaid in September 2019 and is discussed further below. In March 2019, Evergy entered into a $1.0 billion, 6-month tem1 loan credit agreement with a group of banks to provide short-term financing for its common stock repurchase program. The agreement allowed for two term loans during the 6-month term of the agreement, in an aggregate principal amount not to exceed the credit limit of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowing for one additional term loan borrowing in a principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy repaid its $1.0 billion of borrowings under the term loan credit agreement with proceeds from its issuance of $1.6 billion of senior notes in September 2019. Long-Term Debt and Equity Issuances From time to time, Evergy issues long-term debt and equity to repay short-term debt, refinance maturing long-term debt and finance growth. As of December 31, 2019 and 2018, Evergy's capital structure, excluding short-tem1 debt, was as follows: December31 2019 2018 Common equity 57% Noncontrolling interests <0% <0% Long-term debt, including VIEs 51% 43% Under stipulations with the MPSC and KCC, Evergy, Evergy Kansas Central and Evergy Metro are required to maintain common equity at not less than 35%, 40% and 40%, respectively, of total capitalization. The master credit facility and certain debt instruments of the Evergy Companies also contain restrictions that require the maintenance of certain capitalization and leverage ratios. As of December 31, 2019, the Evergy Companies were in compliance with these covenants. Significant Debt Issuances See Note 13 to the consolidated financial statements for information regarding significant debt issuances. 42

Credit Ratings The ratings of the Evergy Companies' debt securities by the credit rating agencies impact the Evergy Companies' liquidity, including the cost of borrowings under their master credit facility and in the capital markets. The Evergy Companies view maintenance of strong credit ratings as vital to their access to and cost of debt financing and, to that end, maintain an active and ongoing dialogue with the agencies with respect to results of operations, financial position and future prospects. While a decrease in these credit ratings would not cause any acceleration of the Evergy Companies' debt, it could increase interest charges under the master credit facility. A decrease in credit ratings could also have, among other things, an adverse impact, which could be material, on the Evergy Companies' access to capital, the cost of funds, the ability to recover actual interest costs in state regulatory proceedings, the type and amounts of collateral required under supply agreements and Evergy's ability to provide credit support for its subsidiaries. As of February 20, 2020, the major credit rating agencies rated the Evergy Companies' securities as detailed in the following table. Moody's S&PGlobal Investors Service(*) Ratings(*) Evergy Outlook Stable Stable Corporate Credit Rating A-Senior Unsecured Debt Baa2 BBB+ Evergy Kansas Central . Outlook Stable Stable Corporate. Credit Rating . Baal Senior Secured Debt A2 A Co:tl1111ercial Pap~r . P-2 A-2 Evergy Kansas South Outlook Stable Stable Corporate Credit Iti:tti11g Baal A-Senior Secured Debt A2 A Short~Ten:il.Rating A-2 EyergyJ\fetr<>. , Outlook Stable Stable ColJ)orate Credit Rating* Baal A Senior Secured Debt A2 A+ Senior UnsecuredJ)ebt .Baitl A Commercial Paper P-2 A-1 Evergy Missouri West Outlook Stable Stable Corporate Credit Rating Baa2 A-Senior Unsecured Debt Baa2 A-Commercial Paper P-2 A-2 <*JA 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. 43

Shelf Registration Statements and Regulatory Authorizations Evergy In November 2018, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in November 2021. Evergy Kansas Central In November 2018, Evergy Kansas Central filed an automatic shelfregistration statement providing for the sale of unlimited amounts of unsecured debt securities and First Mortgage Bonds (FMBs) with the SEC, which expires in November 2021. Evergy Metro In November 2018, Evergy Metro filed an automatic shelfregistration statement providing for the sale of unlimited amounts of unsecured notes and mortgage bonds with the SEC, which expires in November 2021. 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, 2019. Type of Authorization Commission Expiration Date Amount Authorization Evergy Kansas Central & Evergy Kansas South (in millions) Debt FERC December 2020 $1,250.0 $1,000.8 Evergy Metro Debt FERC $1,2$0.0 $1,050.7 Evergy Missouri West Short-Term Debt FERC December 2020 $750.0 $656.7 Debt FERC December 2020 $100.0 $- In addition to the above regulatory authorizations, the Evergy Kansas Central, Evergy Kansas South and Evergy Metro mortgages each contain provisions restricting the amount ofFMBs or mortgage bonds, as applicable, that can be issued by each entity. Evergy Kansas Central, Evergy Kansas South and Evergy Metro must comply with these restrictions prior to the issuance of additional FMBs, general mortgage bonds or other secured indebtedness. Under the Evergy Kansas Central mortgage, the issuance ofFMBs is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas Central 's unconsolidated net earnings available for interest, depreciation and property retirement (which, as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2019, $305 .4 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings. Under the Evergy Kansas South mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of FMBs is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Evergy Kansas South's net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest 44

charges on or 10% of the principal amount of all Evergy Kansas South FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2019, approximately $2,828.6 million principal amount of additional Evergy Kansas South FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with ce1tain refundings. Under the General Mo1tgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mortgage Indenture), additional Evergy Metro mortgage bonds may be issued on the basis of 75% of property additions or retired bonds. As of December 31, 2019, approximately $4,923.3 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage. Cash and Cash Equivalents At December 31, 2019, Evergy had approximately $23 .2 million of cash and cash equivalents on hand. Capital Requirements Capital Expenditures Evergy requires significant capital investments and expects to need cash primarily for utility construction programs designed to improve and expand facilities related to providing electric service, which include, but are not limited to, expenditures to develop new transmission lines and improvements to power plants, transmission and distribution lines and equipment. Evergy's capital expenditures were $1,210.1 million, $1,069.7 million and $764.6 million in 2019, 2018 and 2017, respectively. Capital expenditures projected for the next five years, excluding allowance for fund used during construction (AFUDC) and including costs of removal, are detailed in the following table. This capital expenditure plan is subject to continual review and change. 2020 2021 2022 2023 2024 (millions) Generating fac.ilities $ 487 Transmission and distribution facilities 893 914 886 867 1,006 General facilities ... 238 117* 122 92 94 Total capital expenditures $ 1,618 $ 1,586 $ 1,571 $ 1,414 $ 1,363 45

Contractual Obligations and Other Commitments In the course of its business activities, the Evergy Companies enter into a variety of contracts and commercial commitments. Some of these result in direct obligations reflected on Evergy's consolidated balance sheets while others are commitments, some firm and some based on uncertainties, not reflected in Evergy's underlying consolidated financial statements. The information in the following table is provided to summarize Evergy's cash obligations and commercial commitments. Payment due by period 2020 2021 2022 2023 2024 After 2024 Total Long-term debt (millions) P[incipal $ 251.1 $ 432.0 $ 387.5 $ 439.5 $ 800,0 6,642.9 $ 8,953.0 Interest 350.8 327.2 304.1 288.9 279.7 3,930.7 5,481.4 Long~term

  /  ,,',*-.,,:, \,

debt ofVIEs Principal 32.3 18.8 51.1 Interest 0.8 0.2 LO Lease commitments

• Operating Ie~ses 17.0 14:1 lLO Finance leases 8.1 7.4 6.7 5.8 4.7 46.2 78.9 post-retirement Purchase commitments 84;7 ~03.0*

Power 47.4 47.6 47.8 41.7 325.2 557.0

• Other 117.7 Total contractual commitments (a) $ 1,477.4 $ 1,005.1 $ 1,034.7 $1,303.7 $ 11,201.5 $17,183.6 (a) Evergy expects to make contributions to the pension and other post-retirement plans beyond 2024 but the amounts are not yet determined.

Long-term debt includes current maturities. Long-term debt principal excludes $80.7 million of unamortized net discounts and debt issuance costs and a $125 .5 million fair value adjustment recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger. Variable rate interest obligations are based on rates as of December 31, 2019. Operating lease commitments include leases for office buildings, computer equipment, operating facilities, vehicles and rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for its proportionate share of the cost. Finance lease commitments include obligations for both principal and interest. Evergy expects to contribute $131.9 million to the pension and other post-retirement plans in 2020, of which the majority is expected to be paid by Evergy Kansas Central and Evergy Metro. Additional contributions to the plans are expected beyond 2024 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 2020 are estimates based on information available in dete1mining the amount for 2020. Actual amounts for years after 2020 could be significantly different than the estimated amounts in the table above. Fuel commitments consist of commitments for nuclear fuel, coal and coal transportation costs. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individual commitments entered into in the ordinary course of business. Evergy has other insignificant long-term liabilities recorded on its consolidated balance sheet at December 31, 2019, which do not have a definitive cash payout date and are not included in the table above. 46

Common Stock Dividends The amount and timing of dividends payable on Evergy's common stock are within the sole discretion of the Evergy Board. The amount and timing of dividends declared by the Evergy Board will be dependent on considerations such as Evergy's earnings, financial position, cash flows, capitalization ratios, regulation, reinvestment opp01tunities and debt covenants. Evergy targets a long-term dividend payout ratio of 60% to 70% of earnings. See Note 1 to the consolidated financial statements for information on the common stock dividend declared by the Evergy Board in Febrnary 2020. 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 18 to the consolidated financial statements for further discussion of restrictions on dividend payments. Common Stock Repurchase Program In July 2018, the Evergy Board authorized the repurchase ofup to 60 million shares ofEvergy's common stock. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the sta1t of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020.

• see Note 18 to the consolidated financial statements for more information regarding Evergy's common stock repurchase program.

Off-Balance Sheet Arrangements In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidia1y's intended business purposes. In connection with the closing of the merger, Evergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded. At December 31, 2019, Evergy has provided $110.2 million of credit support for Evergy Missouri West as follows:

• Evergy direct guarantees to Evergy Missouri West counterpaities totaling $17 .0 million, which expire in 2020, and
• Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.

Evergy has also guaranteed Evergy Missouri West's short-term debt, including its commercial paper program. At December 31, 2019, Evergy Missouri West had $93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded. The Evergy Companies also have off-balance sheet arrangements in the form of letters of credit entered into in the ordinary course of business. 47

Cash Flows The following table presents Evergy's cash flows from operating, investing and financing activities. 2019 2018 2017 (millions) 1,749.0 $ 1,497.8 $ Cash flows from (used in) investing activities (1,080.3) 197.4 (780.8) c~~h t19Ws usea in flmu1cing activities (805,8) (l,53SA) (131.6) Cash Flows from Operating Activities Evergy's $251.2 million increase in cash flows from operating activities in 2019 compared to 2018 was primarily driven by a $252.3 million increase due to the inclusion of Evergy Metro's and Evergy Missouri West's cash flows from operating activities in the first five months of2019 and $35.6 million of merger success fees paid by Evergy and Evergy Kansas Central upon the completion of the merger in June 2018. Cash Flows from (used in) Investing Activities Evergy's cash flows used in investing activities increased $1,277.7 million in 2019 compared to 2018 primarily driven by:

   *    $1,154.2 million of cash acquired from Great Plains Energy in June 2018;

• a $243.6 million increase in additions to property, plant and equipment due to the inclusion of Evergy Metro and Evergy Missouri West activity in the first five months of 2019; and

   *    $140.6 million in proceeds from the settlement of deal contingent interest rate swaps in June 2018; partially offset by

• an increase of $154.9 million in proceeds from COLI investments, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019.

Cash Flows used in Financing Activities Evergy's cash flows used in financing activities decreased $732.6 million in 2019 compared to 2018 primarily driven by:

• a $2,081.8 million increase in proceeds from long-term debt, net, as further described in Note 13 to the consolidated financial statements; partially offset by
• a $586.4 million increase ofrepurchased common stock under the common stock repurchase program, as further described in Note 18 to the consolidated financial statements;
• a $305.3 million increase in retirement of long-term debt, as further described in Note 13 to the consolidated financial statements;
• a $211.0 million decrease in collateralized short-term debt, net borrowings primarily due to the establishment ofEvergy Kansas Central's receivable sale facility in the fourth quarter of2018;
• a $123.6 million increase in the repayment of borrowings from the cash surrender value of COLI, primarily from Evergy Kansas Central due to a higher number of policy settlements in 2019; and
• a $69.8 million payment for the settlement of Evergy's interest rate swap that was designated as a cash flow hedge of its issuance of $800.0 million of2.90% Senior Notes in September 2019.

48

EVERGY KANSAS CENTRAL, INC. MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS The below results of operations and related discussion for Evergy Kansas Central is presented in a reduced disclosure format in accordance with General Instruction (1)(2)(a) to Form 10-K. The following table summarizes Evergy Kansas Central's comparative results of operations. 2019 Change 2018 (millions) (107.5) Fuel and purchased power 493.0 (106.2) 599.2 259.9 Operating and maintenance 530.5 (110.2) 640.7 390:9 Taxes other than income tax 192.3 18.6 173.7 Other expense, net (12.9) 20.6 (33.5) 176.8 Income tax expense (benefit) (4.3)

~qµity}n e~)ngikQi'ic@fy.ni~t]ie>clzjnie~tees? n~f19fi:d&oni{ta~es: .**                                                                 4.6 Net income                                                                                                                        349.1 J:,ess: N~tjp.cpnie.'~tfribtiilibf~to*nonbblitrolling. b:itei-es~* ***                                                                 10.2 Net income attributable to Evergy Kansas Central, Inc.                                               $   343.4   $       4.5    $    338.9 Evergy Kansas Central Utility Gross Margin and MWh Sales The following table summarizes Evergy Kansas Central's utility gross margin and MWhs sold.

Revenues and Expenses MWhs Sold 2019 Change 2018 2019 Change 2018 Retail revenues (millions) (thousands) (276) 6,736 Commercial 709.1 6.3 702.8 7,399 (97) 7,496 5;622 (20) 5,642 Other retail revenues 1.0 20.0 45 (13) 58 (40;3) * * '1,.9(>5.6 19,526, (406) 19,932 Wholesale revenues 239.9 (106.2) 346.1 7,540 (2,629) 10,169 NIA NIA Other revenues 68.9 54.6 14.3 NIA NIA NIA 2,501:4 (107.5) 2,614;9 27,066 (31035). 30,101 Fuel and purchased power (493.0) 106.2 (599.2)

• • sFPp.el)vqr~,'.fl;aj).SUl!SSIOµcosts*** (25E3) 8.6 (259.9)

Utility gross margin (al $1,763.1 $ 7.3 $1,755.8 C*lutility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations. Evergy Kansas Central's utility gross margin increased $7.3 million in 2019 compared to 2018 driven by:

• a $27.9 million increase from new retail rates effective in September 2018, net of a $69.8 million provision for rate refund recorded in 2018 for the change in the corporate income tax rate caused by the TCJA; and 49
• a $23.1 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC merger order; partially offset by
• a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 15%; and
• a $12.8 million decrease related to Evergy Kansas Central's TDC rider.

Evergy Kansas Central Operating and Maintenance Evergy Kansas Central's operating and maintenance expense decreased $110.2 million in 2019 compared to 2018 primarily driven by:

   *   $51.9 million of merger-related costs incurred in 2018, consisting of:

0 $44.2 million of voluntary severance and change in control payments as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding equity compensation awards in accordance with the Amended Merger Agreement; and 0

                $21.5 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by 0

a $13.8 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Kansas Central, Evergy, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Kansas Central in accordance with the KCC merger order;

• a $22.9 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily due to:

0

                $12.3 million of obsolete inventory write-offs at retiring fossil-fuel units in 2018; 0

a $7.3 million decrease due to the retirement ofEvergy Kansas Central's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordan Evans Energy Center in the fomth quarter of 2018; and 0 $0.7 million of voluntary severance expenses incurred in 2018 related to the Local 1523 union voluntary exit program; partially offset by 0 an $8.4 million increase due to the write-off of a regulatory asset for costs incurred during the JEC lease extension, see Note 5 to the consolidated financial statements;

• a $19 .2 million decrease in various administrative and general operating and maintenance expenses primarily driven by a $10.0 million decrease in labor and employee benefits expense primarily due to lower employee headcount and pension and post-retirement costs in 2019 and $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program;
• a $9.6 million decrease in transmission and distribution operating and maintenance expense primarily due to a higher level of vegetation management activity in 2018; and
• a $6.3 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; partially offset by

   *   $9 .3 million of voluntary severance expenses incurred in 2019.

Evergy Kansas Central Depreciation and Amortization Evergy Kansas Central's depreciation and amortization expense increased $52.9 million in 2019 compared to 2018 driven by:

• a $32.4 million increase primarily due to a change in depreciation rates as a result of Evergy Kansas Central's rate case effective in September 2018; and
• a $20.5 million increase primarily due to capital additions.

50

Evergy Kansas Central Taxes Other Than Income Tax Evergy Kansas Central's taxes other than income tax increased $18.6 million in 2019 compared to 2018 primarily driven by an $18.3 million increase in property taxes. Evergy Kansas Central Other Expense, Net Evergy Kansas Central's other expense, net decreased $20.6 million in 2019 compared to 2018 primarily driven by:

• a $12.4 million decrease due to recording higher COLI benefits in 2019;
• a $4.2 million decrease due to higher net unrealized gains in Evergy Kansas Central's rabbi trust in 2019; and
• a $3 .4 million decrease due to lower pension non-service costs in 2019.

Evergy Kansas Central Income Tax Expense Evergy Kansas Central's income tax expense increased $56.4 million in 2019 compared to 2018 driven by:

• a $52.6 million increase related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
• an $18.9 million increase due to higher pre-tax income; partially offset by
• a $5.3 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes.

51

EVERGY METRO, INC. MANAGEMENT'S NARRATIVE ANALYSIS OF RESULTS OF OPERATIONS The below results of operations and related discussion for Evergy Metro is presented in a reduced disclosure format in accordance with General Instruction (I)(2)(a) to Form 10-K. The following table summarizes Evergy Metro's comparative results of operations. 2019 Change 2018 (millions) Opet"atingrevenues 1,806.5 $ (16.6) $ 1;823,l Fuel and purchased power 482.1 (38.5) 520.6 Depreciation and amortization 318.4 37.1 281.3 12:J,6. 10.4 117.2 Income from operations 426.5 16.7 409.8 OtheJ"experise, net c1s:s) 10.l (25:9) Interest expense 119.8 (13.9) 133.7 Evergy Metro Utility Gross Margin and MWh Sales The following table summarizes Evergy Metro's utility gross margin and MWhs sold. Revenues and Expenses MWhs Sold 2019 Change 2018 2019 Change 2018 Retail revenues (millions)

                                                   $                               $ 735;6                                           5,686 (8.7)           794.8         7,623                          7,782 Iasis          1,7:13                        1,754 16.3            5.9              10.4             75                            76 14,836                         15,298 Wholesale revenues                                       70.9           17.4             53.5          6,098          1,081          5,017 Other revenues                                           66.4           (9.1)            75.5            NIA                           NIA J,806.5           (16.6)         1,823.1        20,934                         20,315 Fuel and purchased power                               (482.1)          38.5           (520.6) i $ 1:324.,4    .:f ii.9/ $.J;302.s.*

(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations. Evergy Metro's utility gross margin increased $21.9 million in 2019 compared to 2018 driven by:

• a $40.4 million increase from new retail rates effective in December 2018, net of a $72.4 million provision for rate refund recorded for 2018 for the change in the corporate income tax rate caused by the TCJA; and
• a $22.4 million increase in revenue due to one-time bill credits recorded in June 2018 as a result of conditions in the KCC and MPSC merger orders; partially offset by
• a $30.9 million decrease primarily due to lower retail sales driven by cooler summer weather. For 2019 compared to 2018, cooling degree days decreased 18%; and
• a $10.0 million decrease for recovery of programs costs for energy efficiency programs under MEEIA, which have a direct offset in operating and maintenance expense.

52

Evergy Metro Operating and Maintenance Evergy Metro's operating and maintenance expense decreased $42.3 million in 2019 compared to 2018 primarily driven by: 0 a $26.4 million decrease in plant operating and maintenance expense at fossil-fuel generating units primarily driven by: 0 a $10.9 million decrease due to the retirement of Montrose Station in 2018, which includes $7.3 million of obsolete inventory write-offs in 2018; 0 a $3.7 million decrease due to an extended maintenance outage at Iatan No. 2 in 2018; and 0 $3.2 million of voluntary severance expenses incurred in the third quarter of 2018 related to the Local 412 union voluntary exit program;

• a $23. 8 million decrease in various administrative and general operating and maintenance expenses, which includes $5.3 million of voluntary severance expenses incurred in the third quarter of 2018 related to a Wolf Creek voluntary exit program and a $3.5 million decrease in injuries and damages expense primarily due to an increase in estimated workers compensation losses recorded in 2018;
• a $10.0 million decrease in program costs for energy efficiency programs under MEEIA, which have a direct offset in revenue; 0

a $6.8 million decrease in plant operating and maintenance expense at nuclear generating units related to Wolf Creek; and 0

       $2.1 million of merger-related costs incurred in 2018; partially offset by 0

a $23 .2 million increase in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Evergy Metro, Evergy, Evergy Kansas Central and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Evergy Metro in accordance with the KCC and MPSC merger orders;

• a $7 .1 million increase in transmission and distribution operating and maintenance expense primarily due to costs incurred from storms that occurred in January 2019; and

   "   $6.8 million of voluntary severance expenses incurred in 2019.

Evergy Metro Depreciation and Amortization Evergy Metro's depreciation and amortization increased $37.1 million in 2019 compared to 2018 primarily driven by:

   "   a $19 .3 million increase primarily due to capital additions; and
   "   a $17. 8 million increase due to a change in depreciation rates effective in December 2018 as a result of Evergy Metro's 2018 Kansas rate case.

Evergy Metro Taxes Other Than Income Tax Evergy Metro's taxes other than income tax increased $10.4 million in 2019 compared to 2018 primarily driven by a $7.9 million increase in property taxes. Evergy Metro Interest Expense Evergy Metro's interest expense decreased $13.9 million in 2019 compared to 2018 primarily driven by a $12.8 million net decrease due to the repayment of $400.0 million of 7.15% Mortgage Bonds at maturity in April 2019, which decreased interest expense by $25.4 million, partially offset by a $12.6 million increase due to the issuance of $400.0 million of 4.125% Mortgage Bonds in March 2019. 53

Evergy Metro Income Tax Expense Evergy Metro's income tax expense decreased $51.6 million in 2019 compared to 2018 primarily driven by:

• a $51.0 million decrease related to the revaluation of deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger in June 2018; and
• a $21.4 million decrease due to flow-through items primarily driven by higher amortization of excess deferred income taxes; partially offset by
• a $15.5 million increase related to the revaluation of deferred income tax assets and liabilities as a result of the enactment of Missouri state income tax reform in June 2018; and
• a $10.8 million increase due to higher pre-tax income.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK In the ordinary course of business, Evergy faces risks that are either non-financial or non-quantifiable. Such risks principally include business, legal, operational and credit risks and are not represented in the following analysis. See Part I, Item IA, Risk Factors and Part II, Item 7, MD&A for further discussion ofrisk factors. The Evergy Companies are exposed to market risks associated with commodity price and supply, interest rates and equity prices. Commodity price risk is the potential adverse price impact related to the purchase or sale of electricity and energy-related products. Credit risk is the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. Interest rate risk is the potential adverse financial impact related to changes in interest rates. In addition, Evergy's investments in trusts to fund nuclear plant decommissioning and to fund non-qualified retirement benefits give rise to security price risk. Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on Evergy's operating results. During the ordinary course of business, the Evergy Companies' hedging strategies are reviewed to determine the hedging approach deemed appropriate based upon the circumstances of each situation. Though management believes its risk management practices are effective, it is not possible to identify and eliminate all risk. Evergy could experience losses, which could have a mate1ial adverse effect on its results of operations or financial position, due to many factors, including unexpectedly large or rapid movements or disruptions in the energy markets, regulatory-driven market rule changes and/or bankruptcy or non-perfonnance of customers or counterparties, and/or failure of underlying transactions that have been hedged to materialize. Hedging Strategies From time to time, Evergy utilizes derivative instruments to execute risk management and hedging strategies. Derivative instruments, such as futures, forward contracts, swaps or options, derive their value from underlying assets, indices, reference rates or a combination of these factors. These derivative instruments include negotiated contracts, which are referred to as over-the-counter derivatives, and instruments listed and traded on an exchange. Commodity Price Risk The Evergy Companies engage in the wholesale and retail sale of electricity and are exposed to risks associated with the price of electricity and other energy-related products. Exposure to these risks is affected by a number of factors including the quantity and availability of fuel used for generation and the quantity of electricity customers consume. Customers' electricity usage could also vary from year to year based on the weather or other factors. Quantities of fossil fuel used for generation vary from year to year based on the availability, price and deliverability of a given fuel type as well as planned and unplanned outages at facilities that use fossil fuels. Evergy's exposure to fluctuations in these factors is limited by the cost-based regulation of its regulated operations in Kansas and Missouri as these operations are typically allowed to recover substantially all of these costs through cost-recovery mechanisms, primarily through fuel recovery mechanisms. While there may be a delay in timing between when these costs are incurred and when they are recovered through rates, changes from year to year generally do not have a material impact on operating results. 54

Interest Rate Risk Evergy manages interest rate risk and short- and long-term liquidity by limiting its exposure to variable interest rate debt to a percentage of total debt, diversifying maturity dates and, from time to time, entering into interest rate hedging transactions. At December 31, 2019, 3% ofEvergy's long-term debt was variable rate debt. Evergy also has short-term borrowings and current maturities of fixed rate debt that are exposed to interest rate risk. Evergy computes and presents information regarding the sensitivity to changes in interest rates for variable rate debt 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 had $1,113.7 million of variable rate debt, including notes payable, commercial paper and current maturities of fixed rate debt as of December 31, 2019. A 100-basis-point change in interest rates applicable to this debt would impact income before income taxes on an annualized basis by approximately $9.9 million. Credit Risk Evergy is exposed to counterparty credit risk largely in the form of accounts receivable from its retail and wholesale electric customers and through executory contracts with market risk exposure. The credit risk associated with accounts receivable from retail and wholesale customers is largely mitigated by Evergy's large number of individual customers spread across diverse customer classes and the ability to recover bad debt expense in customer rates. The Evergy Companies maintain credit policies and employ credit risk control mechanisms, such as letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Investment Risk Evergy maintains trust funds, as required by the NRC, to fund its 94% share of decommissioning the Wolf Creek nuclear power plant and also maintains trusts to fund pension benefits as well as certain non-qualified retirement benefits. As of December 31, 2019, these funds were primarily invested in a diversified mix of equity and debt securities and reflected at fair value on Evergy's balance sheet. The equity securities in the trusts are exposed to price fluctuations in equity markets and the value of debt securities are exposed to changes in interest rates and other market factors. As nuclear decommissioning costs are currently recovered in customer rates, Evergy defers both realized and unrealized gains and losses for these securities as an offset to its regulatory asset for decommissioning Wolf Creek and as such, fluctuations in the value of these securities do not impact earnings. A significant decline in the value of pension or non-qualified retirement assets could require Evergy to increase funding of its pension plans in future periods, which could adversely affect cash flows in those periods. In addition, a decline in the fair value of these plan assets, in the absence of additional cash contributions to the plans by Evergy, could increase the amount of pension cost required to be recorded in future periods by Evergy. 55

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report ofindependent Registered Public Accounting Firm Evergy, Inc. 57 Evergy Kansas Central, Inc. 60 Evergy Metro, Inc. 61 Evergy, Inc. Consolidated Statements of Comprehensive Income 62 Consolidated Balance Sheets 63 Consolidated Statements of Cash Flows 65 Consolidated Statements of Changes in Equity 66 Evergy Kansas Central, Inc. Consolidated Statements of Income 67 Consolidated Balance Sheets 68 Consolidated Statements of Cash Flows 70 Consolidated Statements of Changes in Equity 71 Evergy Metro, Inc. Consolidated Statements of Comprehensive Income 72 Consolidated Balance Sheets 73 Consolidated Statements of Cash Flows 75 Consolidated Statements of Changes in Equity 76 Combined Notes to Consolidated Financial Statements Note 1: Summary of Significant Accounting Policies 77 Note 2: Merger of Great Plains Energy and Evergy Kansas Central 85 Note 3: Revenue 90 Note 4: Receivables 93 Note 5: Rate Matters and Regulation 94 Note 6: Goodwill 101 Note 7: Asset Retirement Obligations 101 Note 8: Property, Plant & Equipment 102 Note 9: Jointly-Owned Electric Utility Plants 103 Note 10: Pension Plans and Post-Retirement Benefits 104 Note 11: Equity Compensation 116 Note 12: Short-Term Borrowings and Short-Term Bank Lines of Credit 120 Note 13: Long-Term Debt 121 Note 14: Fair Value Measurements 124 Note 15: Commitments and Contingencies 129 Note 16: Guarantees 133 Note 17: Related Party Transactions and Relationships 133 Note 18: Shareholders' Equity 135 Note 19: Variable Interest Entities 136 Note 20: Taxes 137 Note 21: Leases 143 Note 22: Quarterly Operating Results (Unaudited) 146 56

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors ofEvergy, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets ofEvergy, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedules listed in the Index at Item 15 (collectively refened to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 2, 2020, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to enor or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to eITor or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the cunent-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Rate Matters and Regulation - Impact of Rate Regulation on the Financial Statements - Refer to Notes 1 and 5 to the financial statements Critical Audit Matter Description The Company is subject to rate regulation by the Kansas Corporation Commission and by the Missouri Public Service Commission (collectively the "Commissions"), which have jurisdiction with respect to the rates of electric distribution companies in Kansas and Missouri, respectively. Management has determined it meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements applying the specialized rules to account for the effects of cost-based rate regulation. Accounting for the 57

economics of rate regulation impacts multiple financial statement line items and disclosures, such as property, plant, and equipment, including asset retirements and abandonments; regulatory assets and liabilities; operating revenues; operating and maintenance expense; and depreciation expense. The Company's rates are subject to regulatory rate-setting processes and annual earnings oversight. Rates are detennined and approved in regulato1y proceedings based on an analysis of the Company's costs to provide utility service and a return on, and recovery of, the Company's investment in the utility business. Regulatory decisions can have an impact on the recove1y of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. The Commissions' regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the Commissions in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. While the Company has indicated it expects to recover costs from customers through regulated rates, there is a risk that the Commissions will not approve (1) full recovery of the costs of providing utility service or (2) full recovery of all amounts invested in the utility business and a reasonable return on that investment. When the Company retires a regulated plant, the Company must assess the probability of recovery of the regulated plant, which is dependent upon amounts that may be recovered through regulated rates, including any return. Pending receipt of regulatory approval for the retirement and/or recovery of the affected plants, accounting for early retirements of regulated plants involves judgment related to the nature of the early retirement and the likelihood that the Company will recover its remaining investment in these retired generating plants with return. Auditing the judgments related to the nature and likelihood of the retirement and the probability ofrecovering the generating plant investment with a return involves especially subjective and complex judgment. We identified the impact of rate regulation as a critical audit matter due to the significant judgments made by management to support its assertions about impacted account balances and disclosures and the high degree of subjectivity involved in assessing the impact of future regulatory orders on the financial statements. Management judgments include assessing the likelihood of (1) recovery in future rates of incurred costs, (2) probability of potential charges related to the abandonment of regulated plants, and (3) a refund to customers. Given that management's accounting judgments are based on assumptions about the outcome of future decisions by the Commissions, auditing these judgments required specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others:

• We tested the effectiveness of management's controls over the evaluation of the likelihood of (1) the recove1y in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets and (2) a refund or a future reduction in rates that should be reported as regulatory liabilities.
• We tested the effectiveness of management's controls over the initial recognition of amounts as prope1iy, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates, including Company management's determination of the likelihood of recovery of the full investment of certain regulated plants and probability of refunding amounts previously collected from customers related to ce1iain regulated plants.
• We evaluated the Company's disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

0 We evaluated external information and compared it to management's recorded regulatory asset and liability balances for completeness. Such external information included relevant regulat01y orders issued by the Commissions for the Company and other public utilities in Kansas and Missouri, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available 58

information to assess the likelihood of recove1y in future rates or of a future reduction in rates based on precedence of the Commissions' treatment of similar costs under similar circumstances.

• For regulato1y matters in process, including those that could impact the early retirement of regulated plants, we inspected the Company's filings with the Commissions and the filings with the Commissions by intervenors that may impact the Company's future rates, for any evidence that might contradict management's assertions.
• We evaluated the reasonableness of management's judgments for potential indicators of abandonment by performing the following:

0 We inquired of management about property, plant, and equipment that may be abandoned. 0 We inspected the capital projects budget and construction-in-process listings and inquired of management to identify projects that are designed to replace assets that may be retired prior to the end of the useful life. 0 We inspected minutes of the board of directors and regulatory orders and other filings with the Commissions to identify any evidence that may contradict management's assertion regarding probability of an abandonment.

• We compared actual spend for projects that have been capitalized to property, plant, and equipment to budget. We evaluated regulatory filings for any evidence that intervenors are challenging full recovery of the cost of any capital projects. For significant projects that were over budget or if full recovery of project costs is being challenged by intervenors, we evaluated management's assessment of the probability of a disallowance. We tested selected costs included in the capitalized project costs for completeness and accuracy.
• We evaluated management's analysis, and letters from internal and external legal counsel, as appropriate, regarding probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities not yet addressed in a regulatory order to assess management's assertion that amounts are probable of recovery or a future reduction in rates.
• We evaluated management's conclusions for the probable recovery of the retired regulated plant investment with a return with the assistance of professionals in our firm having expertise in the application of accounting guidance for early retirements of regulated plants. We evaluated management's conclusions regarding the accounting for the abandonment of certain regulated plants and the impact of recent rate orders on the accounting.

Isl DELOITTE & TOUCHE LLP Kansas City, Missouri March 2, 2020 We have served as the Company's auditor since 2002. 59

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholder and the Board of Directors ofEvergy Kansas Central, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets ofEvergy Kansas Central, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial rep01ting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included perforn1ing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Isl DELOITTE & TOUCHE LLP Kansas City, Missouri March 2, 2020 We have served as the Company's auditor since 2002. 60

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholder and the Board of Directors ofEvergy Metro, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets ofEvergy Metro, Inc. and subsidiaries (the "Company") as of December 31, 2019 and 2018, the related consolidated statements of comprehensive income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively refen-ed to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to en-or or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to en-or or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Isl DELOITTE & TOUCHE LLP Kansas City, Missouri March 2, 2020 We have served as the Company's auditor since 2002. 61

EVERGY, INC. Consolidated Statements of Comprehensive Income Year Ended December 31 2019 2018 2017 (millions, except per share amounts)

• OPERATThTGREYENUES t 5,147.8 $ 4,275.<J $ 2,571.0 OPERATING EXPENSES:

1,265.Q 1,078.7 SPP network transmission costs 251.3 259.9 247.9 ()perating and ma,inte11<u1ce 1,218.5 1,115.8 563:5 Depreciation and amortization 861.7 618.8 371.7 HL~,t::smuta thall incqme 365.5 *.* 269..1 167.6 Total Operating Expenses 3,962.0 3,342.3 1,892.2 1,185;8 933.6 678.8 OTHER INCOME (EXPENSE): 11.0 4.0 Other income 26.9 15.5 8.3

                                                                                                                                          '(76:~j               (78.7)            (39.1)

Total Other Expense, Net (39.0) (54.4) (26.8) 374;0 279:6 171.0 INCOME BEFORE INCOME TAXES 772.8 599.6 481.0 Equity in earnings of equity method investees, net of income taxes 9.8 5.4 6.7 Less: Net income attributable to noncontrolling interests 15.7 10.2 12.6 BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO EVERGY (see Note 1) Brisic ea.rriings per.COl'.l1lliOilShare

   ,*','     ,,', V    \ j,  ,'" ,   C, ,         ,'    /u,,: ,,   >;
                                                                                                                                                     $           2.50    $

Diluted earnings per common share $ 2.79 $ 2.50 $ 2.27 AVERABECOMtvfONSHARESOUTS'fANDING. Basic 239.5 213.9 142.5 011~tel i:239,? 214.1 142.6

                                                                                                                                 $        685:6      $          546.0    $       .336:5 OTHER COMPREHENSIVE INCOME Loss on derivative hedging instruments                                                                                                 (64.4)                 (5.4) 16.5 Net loss on derivative hedging instruments                                                                                        (47.9)

Reclassification to* expenses; net

      '   , : , ; , >' u'f,d       ,'       'N ' ,, / , ,,'      /    // ' ,

of tax. *

,0,'

Net gain (loss) arising during period (0.8) 1.4 (0.4) 1.0 1.0 (3.0) 543.0 336.5 10.2 12.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 62

EVERGY, INC. Consolidated Balance Sheets December 31 2019 2018 ASSETS (millions, except share amounts) CURRENT ASSETS: Gasb and cast equiva.l~nts Receivables, net 228.5 193.7 Fuel inventory and supplies 481.6 511.0 Regulatory assets 231.7 303.9 Total Current Assets 1,467.7 1,681.0 Regulatmy assets 1,740.5 1,757.9 Total Other Assets 5,161.8 4,965.4 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 63

EVERGY, INC. Consolidated Balance Sheets December31 2019 2018 LIABILITIES AND EQUITY (millions, except share amounts) CURRENT LIABILITIES: Current maturities oflong-term debt of variable interest entities 32.3 30.3 Collateralized note payable 339.0 365.0 Accrued taxes 145.1 133.6 Regulatory liabilities 63.3 110.2 Other 220.8 171.9 LONG-TERM LIABILITIES: Long-term debt of variable interest entities, net 18.8 51.1 Unamortized investment tax credits 375.4 373.2 Pension and post-retirement liability 1,017.6 987.6 Other 340.7 236.7 Commitments and Contingencies (Note 15) Evergy, Inc. Shareholders' Equity: Retained earnings 1,551.5 1,346.0 Total Evergy, Inc. Shareholders' Equity 8,571.9 10,028.2 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 64

EVERGY, INC. Consolidated Statements of Cash Flows Amortization of nuclear fuel 51.4 43.6 32.2 Net deferred income taxes and credits 121.5 124.2 149.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 65

EVERGY, INC. Consolidated Statements of Changes in Equity Evergy, Inc. Shareholders Non-Common Common Retained controlling Total stock shares stock earnings AOCI interests equity (millions, except share amounts) Balance as of December 31, 2016 141,791,153 $ 2;727.3. $ 1,078.6 $ $ 27.3 $3,833.2 Net income 323.9 12.6 336.5 Issuance of stock 12,131 0.6 0.6 Issuance of stock compensation and reinvested dividends, net of tax withholding 290,991 (1.9) (1.9) Dividends declared on common ($1.60 per share) - - (229.2) Stock compensation expense 8.8 8.8 Decopsolidation of noncontrolling interests (81.9) Distributions to shareholders of noncontrolling interests Balance as of December Net income Issuance of stock to Great Plains Energy shareholders 128,947,518 6,979.9 Issuance of restricted common stock 122,505 Dividends declared on common stock ($1.735 per share) Stock compensation expense 29.9 29.9 Repurchase Derivative hedging activity, net of tax Change in unrecognized pension expense, net of tax Other B.a.lance as of December 31, 2018 Net income Issuance of stock compensation and reinvested dividends, net of tax withholding 111,849. Dividends declared on common stock ($1.93 per share) (462.5) (462.5) Dividend equivalents declared (1.9) Stock compensation expense 16.3 16.3 Repurchase of common stock repurchase plan (28,796,658) Consolidation of non controlling interests 3.8 3.8 Distributions to shareholders ofnoncontrolling interests (8.6) (8.6) Derivative hedging activity, net of tax The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 66

EVERGY KANSAS CENTRAL, INC. Consolidated Statements of Income Year Ended December 31 2019 2018 2017 SPP network transmission costs 251.3 259.9 247.9 530.5 Depreciation and amortization 390.9 371.7 J67;6 Total Operating Expenses 1,910.9 1,892.2 OTHER INCOME (EXPENSE): Other income 23.1 13.9 8.3 INCOME BEFORE INCOME TAXES 406.6 340.2 481.0 Equity in earnings of equity method investees, net of income taxes 4.6 4.6 6.7 Less: Net income attributable to noncontrolling interests 15.7 10.2 12.6 The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 67

EVERGY KANSAS CENTRAL, INC. Consolidated Balance Sheets December 31 2019 2018 (millions, except amounts) CURRENT ASSETS: and cash equivalents $ 5.2 $ Receivables, net 140.4 84.3 Related party receivables 9.9 2.6* Accounts receivable pledged as collateral 171.0 185.0 Fuel inventory and 266,4 Income taxes receivable 3o.4 42.7 Regulatory Prepaid expenses and other assets 34.3 35.0 Total 768.0 PROPERTY, PLANT AND EQUIPMENT, NET 9,864.9 9,718.3 PROPERTY, PLANT AND EQUIPMENT OF VARIABLE.INTEREST ENTITIES, NET 162.0 169.2 OTHER ASSETS: Regulatory assets 7.3.0.4. Nuclear decommissioning trust fund 272.5 227.5 Total Other Assets TOTAL ASSETS The disclosures regarding Evergy Kansas Central included in the accompanying Notes to ConsoHdated Financial Statements are an integral part of these statements. 68

EVERGY KANSAS CENTRAL, INC. Consolidated Balance Sheets December31 2019 2018 LIABILITIES AND EQUITY (millions, except share amounts) CURRENT LIABILITIES:

  ~urre:nt1nat11t1.tieS.uL*tVµ~-u01u~debt                                                                              $     250.0          $

Current maturities oflong-term debt of variable interest entities 32.3 30.3 L7 Collateralized note payable 171.0 185.0 14.9 Accrued interest 74.2 74.4 19.5 17.1 8:3.0 Total Current Liabilities 1,286.5 1,378.9 Long-tenn debt, net 3,436.1 3,389.8 18,8 5l.l Deferred income taxes 817.7 815.4 253.2' Regulatory liabilities 1,132.5 1,101.8 495.5 474.7 Asset retirement obligations 249.6 264.0

                                                                                                                            .1s1.s*                130.7 Total Long-Term Liabilities                                                                                           6,555.2               6,477.2 EQUITY:

Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued 2,737.6 2,737.6 1;494.o . 1,260,6 Total Evergy Kansas Central, Inc. Shareholder's Equity 4,231.6 3,998.2 (2(>'.6) (37:5) Total Equity 4,205.0 3,960.7 The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 69

EVERGY KANSAS CENTRAL, INC. Consolidated Statements of Cash Flows Year Ended December 31 2019 2018 2017 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions) -Net income 349.1 336.5 Adjustments to reconcile income to net cash from operating activities: Depreciation and amortization * ** 371.7 Amortization of nuclear fuel 25.6 26.0 32.2 Amortization of defen<ed refueling outage 16.1 Amortization of corporate-owned life insurance 19.8 22.6 20.6

• Non.:cash compensation 8:8 Net deferred income taxes and credits

   . ,,@owarice for egt1ity tmtds used during conMructidfi Changes in working capital items:

Accourits receivable Additions to property, plant and equipment (596.1) (713.3) (764.6) f'urchase ofsecurities ;; trusts . J21,8J ",>: (~9)l) *.. (41.0) Sale of securities - trusts 21.6 104.2 41.2 Proceeds from investment in corporate-owned life insurance 158.9 6.8 4.2 Cash Flows from (used in) Financing Activities .NEJ.CHAN.GE.IN CASH, GASHEQU[VALEi-i:rs~A.~D.lp3S~ICP3p Pf\.SII:c** CASH, CASH EQUIVALENTS AND RESTRICTED CASH: Beginning of period The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 70

EVERGY KANSAS CENTRAL, INC. Consolidated Statements of Changes in Equity Evergy Kansas Central, Inc. Shareholder Non-Common Common Retained controlling Total stock shares stock interests (millions. except share amounts) Balance as ofDeceiµber 31, 2016 141,791,153 $ 2,727.3 $ $ Net income 323.9 12.6 336.5 Issu.ance of.stock 12,131 0.6 0.6 Issuance of stock for compensation and reinvested dividends, net of tax withholding 290,991 (1.9) (1.9) Dividends declared on. c.ommon stock** (229.2) Stock compensation expense 8.8 8.8 Decons~lidation* ~fli'ontontrnllinginterest (81.9) Distributions to shareholders of noncontrolling interests (5.7) (5.7) Balance as of]Jecember. 31~ 201 't 142,094,275 2,734.8 1,173.3 (47.7) 3,860.4 Net income 338.9 10.2 349.1 1ssi1ance of stockfor compensati~Ii 811~ reirivested di~idends}net withholding

• 5.16,990 (17.2) -

Stock cancelled pursuant to Amended Merger Agreement (142,611,264) Di:~ide11ds declared o~commou stock Stock compensation expense 19.9 19.9 Other 0.1 ;0.1 Balance as of December 31, 2018 2,737.6 (37.5) 3,960.7 J\l.et income 359.1 Dividends declared on common stock (110.0) Consolidation ofnoticontrolling in.terests C ,', , "',,/'*; ,, ',<' '"'"'" H .3:8 Distributions to shareholders of noncontrolling interests (8.6) (8.6) .Balance as ofi>eceniber 31, 2919 1 $ 2,737.6 $ 1,494.0 $ (26.6) $ 4,205.0 The disclosures regarding Evergy Kansas Central included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 71

EVERGY METRO, INC. Consolidated Statements of Comprehensive Income Year Ended December 31 2019 2018 2017 (millions) OPERATING EXPENSES: Operating and maintenance 451.9 494.2 474.8 Taxes other than income tax 127.6 117.2 182.5 Investment earnings 2.4 2.8 2.0 Income tax expense 35.7 87.3 128.2 COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME Reclassification to expenses, net of tax: 0.7 3.7 4.6 The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 72

EVERGY METRO, INC. Consolidated Balance Sheets December31 2019 2018 ASSETS (millions, except share amounts) CURRENT ASSETS: Receivables, net 48.1 62.7 Accounts receivable pledged as collateral 118.0 130.0 Income taxes receivable 8.7 Prepaid expenses 22.8 20.1 OTHER ASSETS: Nuclear decommissioning trust fund The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 73

EVERGY METRO, INC. Consolidated Balance Sheets December 31 2019 2018 LIABILITIES AND EQUITY (millions, except share amounts) CURRENT LIABILITIES: Current maturities of lbng7t~rm debt' .. $ $ 400.0 Notes payable and commercial paper 199.3 176.9 coiiateralized note payable 118.0 130.0 Accounts payable 233.6 211.1 RelatedpartyP,ayableJ .,4.6 Accrued taxes 38.8 39.7 Accrued interest Regulatory liabilities 52.8 Asset:retirementh611gatibrii Accrued compensation benefits 52.5

.Other Total Current Liabilities                                                                                                 747.6              1,138.3 Long-term debt, net                                                                                                         2,525.0              2,130.1 Unamortized investment tax credits                                                                                            119.6                120.7 Pension and post-retirement liability                                                                                         499.7                491.9 217;5 Other                                                                                                                         180.0                 81.8 4,976.8             4,482:4 Commitments and Contingencies (Note 15)

EQUITY: Common stock 1,000 shares authorized, without par value, 1 share issued, stated value 1,563.1 1,563.1 Retained earnings .. *1,012.8 932,6 Accumulated other comprehensive income 4.8 4.1 TotaLEqi.dfy :2,580.7 2;499.8 TOTAL LIABILITIES AND EQUITY $ 8,305.1 $ 8,120.5 The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 74

EVERGY METRO, INC. Consolidated Statements of Cash Flows Year Ended December 31 2019 2018 2017 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions) Adjustments to reconcile income tc net cash from operating activities: Amortization of nuclear fuel 25.9 26.2 32.1 Net deferred income taxes and credits (30.6) 48.6 82.5

  >>~'

Changes in working capital items: Accountsreceiviible*** Accounts receivable pledged as* collateral Ft1t:Unyeritory ~na. supplie~ . Prepaid expenses and other current assets 28.0 7.2 8.4 1\:cbounts JJityabl~ Sale of securities - trusts 25.7 27.1 30.3 (?ther irtvestiµg activitie,s. Short term debt, net 22.4 8.0 34.6 (3()1fateralized shdrt~funh Proceeds from long-term debt 393.2 465.6 296.2 R.'~tii:em~nts 6{1ong-tc::nn aebt Cash dividends paid (175.0) (180.0) (212.0)

• C>tllerfmanciri&.acti\'ities *** \fio:f * : r*1.19' ;;

Cash Flows used in Financing Activities (170.5) (223 .4) (142.2) NET.<:;HANGE }N' CASH, CASH. EQPJ.V~'E-E~TS~J',lD[l{B§,'.IC[J3)IJ('A<SFI .**.**: ..*. (2.3} CASH, CASH EQUIVALENTS AND RESTRICTED CASH: of

.. Beginning period End of period                                                                                                     $      2.0    $     2.6     $      2.2 The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

75

EVERGY METRO, INC Consolidated Statements of Changes in Equity AOCI-Net gains Common (losses) on stock Common Retained cash flow Total shares Stock earnings hedges Equity (millions, except share amounts) Balance as ofDecember.31, 2016 982.6 (4;2)$ Net income 179.8 179.8 Cumulative effect of adoption ofASJJ2()16-{)9 (0.7) (0.7) Dividends declared on common stock (212.0) (212.0) Dividends declared on common stock (180.0) (180.0) Derivative hedging activity,11etoftax 3.7 Balance as of December 31, 2018 1,563.1 932.6 4.1 2,499.8 Net income The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 76

EVERGY, INC. EVERGY KANSAS INC. EVERGY INC. Combined Notes to Consolidated Financial Statements The notes to consolidated financial statements that follow are a combined presentation for Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., all registrants under this filing. The terms "Evergy," "Evergy Kansas Central," "Evergy Metro" and "Evergy Companies" are used throughout this report. "Evergy" refers to Evergy, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Kansas Central" refers to Evergy Kansas Central, Inc. and its consolidated subsidiaries, unless othe1wise indicated. "Evergy Metro" refers to Evergy Metro, Inc. and its consolidated subsidiaries, unless otherwise indicated. "Evergy Companies" refers to Evergy, Evergy Kansas Central and Evergy Metro, collectively, which are individual registrants within the Evergy consolidated group.

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES Organization Evergy is a public utility holding company incorporated in 2017 and headquartered in Kansas City, Missouri. Evergy operates primarily through the following wholly-owned direct subsidiaries listed below. In September 2019, these wholly-owned direct subsidiaries were rebranded and renamed under the Evergy brand name.

• Evergy Kansas Central, Inc. (Evergy Kansas Central), formerly known as Westar Energy, Inc., is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Evergy Kansas Central has one active wholly-owned subsidiary with significant operations, Evergy Kansas South, Inc. (Evergy Kansas South), fonnerly known as Kansas Gas and Electric Company.
• Evergy Metro, Inc. (Evergy Metro), formerly known as Kansas City Power & Light Company, is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas.
• Evergy Missouri West, Inc. (Evergy Missouri West), formerly known as KCP&L Greater Missouri Operations Company, is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri.
• Evergy Transmission Company, LLC (Evergy Transmission Company), formerly known as GPE Transmission Holding Company, LLC, owns 13.5% ofTransource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). Transource is focused on the development of competitive electric transmission projects. Evergy Transmission Company accounts for its investment in Transource under the equity method.

Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway Energy Company. Prairie Wind owns a 108-mile, 345 kV double-circuit transmission line that provides transmission service in the Southwest Power Pool, Inc. (SPP). Evergy Kansas Central accounts for its investment in Prairie Wind under the equity method. Since the rebranding in September 2019, Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West have been conducting business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 14,700 MWs of owned generating capacity and renewable purchased power agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri. Evergy was incorporated in 2017 as Monarch Energy Holding, Inc. (Monarch Energy), a wholly-owned subsidiary of Great Plains Energy Incorporated (Great Plains Energy). Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy and did not conduct any business activities other than those required for its 77

formation and matters contemplated by the Amended and Restated Agreement and Plan of Merger, dated as of July 9, 201 7, by and among Great Plains Energy, Evergy Kansas Central, Monarch Energy and King Energy, Inc. (King Energy), a wholly-owned subsidiary of Monarch Energy (Amended Merger Agreement). On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Centrnl surviving the merger. These merger transactions resulted in Evergy becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. See Note 2 for additional information regarding the merger. Principles of Consolidation Evergy Kansas Central was determined to be the accounting acquirer in the merger and thus, the predecessor of Evergy. Therefore, Evergy's consolidated financial statements reflect the results of operations of Evergy Kansas Central for 2017. Evergy had separate operations for the period beginning with the quarter ended June 30, 2018, and references to amounts for periods after the closing of the merger relate to Evergy. The results of Great Plains Energy's direct subsidiaries have been included in Evergy's results of operations from the date of the closing of the merger and thereafter. Evergy Metro elected not to apply "push-down accounting" related to the merger, whereby the adjustments of assets and liabilities to fair value and the resulting goodwill would be recorded on the financial statements of the acquired subsidiary. These adjustments for Evergy Metro, as well as those related to the acquired assets and liabilities of Great Plains Energy and its other direct subsidiaries, are only reflected on Evergy's consolidated financial statements. Each of Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements includes the accounts of their subsidiaries and variable interest entities (VIEs) of which they are the primary beneficiary. Undivided interests in jointly-owned generation facilities are included on a proportionate basis. Intercompany transactions have been eliminated. The Evergy Companies assess financial performance and allocate resources on a consolidated basis (i.e., operate in one segment). Use of Estimates The process of preparing financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and assumptions that affect the reported amounts of certain types of assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at acquisition. 78

Fuel Inventory and Supplies The Evergy Companies record fuel inventory and supplies at average cost. The following table separately states the balances for fuel inventory and supplies. December 31 2019 2018 Evergy (millions) Fuel inventory $ 146.4 $ 168.9 Supplies 335.2 342.1 Fuel inventory and supplies $ 481.6 $ 511.0 Evergy Kansas Central Fuel inventory $ 80.2 $ 87.8 Supplies 186.2 189.0 Fuelinventory and supplies $ 266.4 $ 276.8 Evergy Metro Fuel inventory $ 46.1 $ 57.8 Supplies 116.9 119.8

                                                                                                                         $          177.6 Property, Plant and Equipment The Evergy Companies record the value of property, plant and equipment, including that ofVIEs, at cost. For plant, cost includes contracted services, direct labor and materials, indirect charges for engineering and supervision and an allowance for funds used during construction (AFUDC). AFUDC represents the allowed cost of capital used to finance utility construction activity. AFUDC equity funds are included as a non-cash item in other income and AFUDC borrowed funds are a reduction of interest expense. AFUDC is computed by applying a composite rate to qualified construction work in progress. The rates used to compute gross AFUDC are compounded semi-annually.

The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table. 2019 2018 2017 Evergy (millions) AFUDC borrowed funds $ $ 10.4 $ 5.6 AFUDC equity funds 2.2 3.1 2.0 Total $ 16.7 $ 13.5 $ 7.6 Evergy Kansas Central AFUDC borrowed funds $ 7.5 $ 6.6 $ 5.6 AFUDC equity funds 2.9 2.0 Total $ 7.5 $ 9;5 $ 7.6 Evergy Metro<a) AFUDCborrowed funds $ 4.3 $ 4.9 $ 6.1 AFUDC equity funds 2.2 1.4 6.0 Total $ 6.5 $ 6.3 $ 12d Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. The average rates used in the calculation of AFUDC are detailed in the following table. 2019 2018 2017 Evergy Kansa.s Central 3.0% 3.3% 2.3% Evergy Metro 4.6% 3.9% 4.9% Missouri West 3.7% 2.9% 1.9% 79

When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the incremental maintenance cost incurred for such outages is deferred and am01iized to expense ratably over the period between planned outages. Depreciation and Amortization Depreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. See Note 8 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity. The depreciable lives ofEvergy's, Evergy Kansas Central's and Evergy Metro's property, plant and equipment are detailed in the following table. Evergy Evergy Kansas Central Evergy Metro (years) Transmission facilities 15 to 94 36 to 94 15 to 70 Other 5 to 84 7 to 84 5 to 50 Plant to be Retired, Net When the Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset and a probable abandonment. If the asset is still in service, the net amount is classified as plant to be retired, net on the consolidated balance sheets. If the asset is no longer in service, the net amount is classified as a regulatory asset on the consolidated balance sheets. The Evergy Companies must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset. Evergy Missouri West has determined that its November 2018 retirement of Sibley No. 3 Unit meets the criteria to be considered an abandonment. As of December 31, 2019, Evergy has classified the remaining Sibley No. 3 Unit net book value of $130.5 million as retired generation facilities within regulatory assets on its consolidated balance sheet. This regulatory asset is reduced by approximately $9 million of annual amortization expense which is an amount equal to the annual depreciation expense for the asset reflected in retail rates. In October 2019, the Missouri Public Service Commission (MPSC) granted the request of ce1iain intervenors for an Accounting Authority Order (AAO) that requires Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, tax.es including accumulated deferred income taxes and all other costs associated with Sibley Station following the station's retirement in November 2018 for consideration in Evergy Missouri West's next rate case, which is expected to be completed no later than 2022. See Note 5 for additional information regarding the AAO. Evergy Missouri West expects that the MPSC's decision in its next rate case regarding the AAO could impact the valuation of its regulatory asset for retired generation facilities but as of December 31, 2019, has concluded that no impairment is required based on the relevant facts and circumstances. 80

Nuclear Plant Decommissioning Costs Nuclear plant decommissioning cost estimates are based on either the immediate dismantlement method or the deferred dismantling method as determined by the State Corporation Commission of the State of Kansas (KCC) and MPSC and include the costs of decontamination, dismantlement and site restoration. Based on these cost estimates, Evergy Kansas Central and Evergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek. Related liabilities for decommissioning are included on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets in asset retirement obligations (AROs). As a result of the authorized regulatory treatment and related regulatory accounting, differences between the decommissioning trust fund asset and the related ARO are recorded as a regulatory asset or liability. See Note 7 for discussion of AROs including those associated with nuclear plant decommissioning costs. Regulatory Accounting Accounting standards are applied that recognize the economic effects of rate regulation. Accordingly, regulatory assets and liabilities have been recorded when required by a regulatory order or based on regulatory precedent. See Note 5 for additional infonnation concerning regulatory matters. Cash Surrender Value of Life Insurance Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-terms assets and are detailed in the following table for Evergy. Substantially all ofEvergy's COLI-related balances relate to Evergy Kansas Central's COLI activity. December 31 2019 2018 Evergy (millions) Increases in cash surrender value and death benefits are recorded in other income in the Evergy Companies' consolidated statements of income and comprehensive income. Interest expense incurred on policy loans is offset against the policy income. Income from death benefits is highly variable from period to period. Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of the following financial instruments for which it was practicable to estimate that value. Nuclear decommissioning tnist fund - The Evergy Companies' nuclear decommissioning trust fund assets are recorded at fair value based on quoted market prices of the investments held by the fund and/or valuation models. Pension plans - For financial reporting purposes, the market value of plan assets is the fair value. Revenue Recognition The Evergy Companies recognize revenue on the sale of electricity to customers over time as the service is provided in the amount they have the right to invoice. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies' unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 4 for the balance of unbilled receivables for each ofEvergy, Evergy Kansas Central and Evergy Metro as of December 31, 2019 and 2018. 81

The Evergy Companies also collect sales taxes and franchise fees from customers concun-ent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus are not reflected on the consolidated statements of income and comprehensive income for Evergy, Evergy Kansas Central and Evergy Metro. See Note 3 for additional details regarding revenue recognition from sales of electricity by the Evergy Companies. Allowance for Doubtful Accounts The Evergy Companies determine their allowance for doubtful accounts based on the age of their receivables. Receivables are charged off when they are deemed uncollectible, which is based on a number of factors including specific facts surrounding an account and management's judgment. Property Gains and Losses Net gains and losses from the sale of assets and businesses and from asset impairments are recorded in operating expenses. Asset Impairments Long-lived assets and finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the canying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset to be held and used is less than the carrying value of the asset, an asset impairment must be recognized in the financial statements. The amount of impairment recognized is the excess of the carrying value of the asset over its fair value. Goodwill and indefinite lived intangible assets are tested for impairment annually and when an event occurs indicating the possibility that an impainnent exists. The annual test must be perfonned at the same time each year. The goodwill impainnent test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the canying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. See Note 6 for additional details on goodwill. Income Taxes Income taxes are accounted for using the asset/liability approach. Defe1Ted tax assets and liabilities are determined based on the temporary differences between the financial rep011ing and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. The Evergy Companies recognize tax benefits based on a "more-likely-than-not" recognition threshold. In addition, the Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. Evergy Kansas Central's and Evergy Metro's income tax provisions include taxes allocated based on their separate company's income or loss. The Evergy Companies have established a net regulatory liability for future refunds to be made to customers for the over-collection of income taxes in rates. Tax credits are recognized in the year generated except for certain Evergy Kansas Central, Evergy Metro and Evergy Missouri West investment tax credits that have been defen-ed and amortized over the remaining service lives of the related properties. 82

Other Income (Expense), Net The table below shows the detail of other expense for each of the Evergy Companies. 2019 2017 Evergy (millions) Evergy Kansas Central (20'.0) Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. Earnings Per Share To compute basic earnings per share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), performance shares and restricted stock. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method. The following table reconciles Evergy's basic and diluted EPS. 2019 2018 2017 Income (millions, except per share amounts) Less: Net income attributable to noncontrolling interests 15.7 10.2 12.6 Add: effect of dilutive securities 0.4 0.2 0.1 Anti-dilutive shares excluded from the computation of diluted EPS for 2019 were 785 RSUs. There were no anti-dilutive securities excluded from the computation of diluted EPS for 2018 and 2017. 83

Supplemental Cash Flow Information Year Ended December 31 2019 2018 2017 Evergy (millions) Cash paid for (received from): Intereston financing activities, net of amount capitalized $ 153,9 Interest on financing activities ofVIEs 1.6 2.3 3.1 Income taxes, net of refunds (5.2) (12.7) Non-cash investing transactions: Property, plantand equipment additions (reductions) 186.0 (7.8) 158.8 Deconsolidation of property, plant and equipment of VIE (72.9) Non-cash financing transaction~:

• Issuance of stock for compensation and reinvested dividends (0.3) 0.5 5.1 Year Ended December 31 2019 2018 2017 Evergy Kansas Central (millions)

Cash paid for (received from): Interest on financing activities, ;if amount capitalized $ Interest on financing activities ofVIEs 1.6 2.3 3.1 Income taxes, net of refunds Non-cash investing transactions: Non~cash financi~gtra1tsa9ti1ms: Issuance of stock for compensation and reinvested dividends 5.1 Year Ended December 31 2019 2018 2017 Evergy Metro(a) (millions) Cash paid for (received from): Interest on financing activities, n,etof amount capitalized Income taxes, net of refunds 77.0 31.2 38.8 Non-cashinyesting.transacti():n~: Property, plant and equipment additions 80.7 19.2 36.6 (a)Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. See Note 2 for the non-cash information related to the merger transaction, including the fair value of Great Plains Energy's assets acquired and liabilities assumed and the issuance of Evergy common stock. Dividends Declared In February 2020, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.505 per share on Evergy's common stock. The common dividend is payable March 20, 2020, to shareholders of record as of March 9, 2020. In February 2020, Evergy Kansas Central's and Evergy Metro's Boards of Directors each declared cash dividends payable to Evergy of $60.0 million, payable on March 19, 2020. 84

Recently Adopted Accounting Standards Leases In February 2016, the FASB issuedASU No. 2016-02, Leases, which requires an entity that is a lessee to record a right-of-use asset and a lease liability for lease payments on the balance sheet for all leases with tenns longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. In January 2018, the FASB issued ASU No. 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, which permits entities to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. In July 2018, the FASB issuedASU No. 2018-10, Codification Improvements to Topic 842, Leases, which updates narrow aspects of the guidance issued in ASU No. 2016-02. Also in July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which provides an optional transition method that allows entities to initially apply Topic 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. In December 2018, the FASB issuedASU No. 2018-20, Leases: Narrow-Scope Improvements for Lessors, which is expected to reduce a lessor's implementation and ongoing costs associated with applying ASU No. 2016-02. In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements, which clarifies certain lessor accounting and interim reporting requirements. ASU No. 2016-02 and the subsequent amendments are effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted, and requires a modified retrospective transition approach with an option to either adjust or not adjust comparative periods. The Evergy Companies adopted the new guidance on January 1, 2019, without adjusting comparative periods for all leases existing as of January 1, 2019, by electing the optional transition method permitted by ASU No. 2018-11. As a result, Evergy, Evergy Kansas Central and Evergy Metro recorded an increase to assets and liabilities of approximately $110 million, $40 million and $80 million, respectively, as of January 1, 2019. Evergy Kansas Central and Evergy Metro have certain lease transactions between them for which the related assets and liabilities are eliminated at consolidated Evergy. The adoption of Topic 842 did not have a material impact on the Evergy Companies consolidated statements of income and comprehensive income and there was no cumulative-effect adjustment recorded to the opening balance of retained earnings. The Evergy Companies also elected a practical expedient to forgo reassessing existing or expired contracts as leases to determine whether each is in scope of Topic 842 and to forgo reassessing lease classification for existing and expired leases. Revenue Recognition In May 2014, the FASB issuedASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in GAAP when it became effective. The Evergy Companies adoptedASU No. 2014-09 and its related amendments (Accounting Standards Codification (ASC) 606) on January 1, 2018, using the modified retrospective transition method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after January 1, 2018, are presented under ASC 606 while historical periods have not been adjusted and continue to be reported in accordance with the legacy guidance in ASC 605 - Revenue Recognition. There was no cumulative effect adjustment to the opening balance of retained earnings in 2018 for the Evergy Companies as a result of the adoption of the new guidance.

2. MERGER OF GREAT PLAINS ENERGY AND EVERGY KANSAS CENTRAL Description of Merger Transaction On June 4, 2018, Evergy completed the mergers contemplated by the Amended Merger Agreement. As a result of the mergers, Great Plains Energy merged into Evergy, with Evergy surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. Following the completion of these mergers, Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West, became wholly-owned subsidiaries ofEvergy.

The merger was structured as a merger of equals in a tax-free exchange of shares that involved no premium paid or received with respect to either Great Plains Energy or Evergy Kansas Central. As a result of the closing of the 85

merger transaction, each outstanding share of Great Plains Energy common stock was converted into 0.5981 shares of Evergy common stock and each outstanding share of Evergy Kansas Central common stock was convetied into 1 share of Evergy common stock. As provided in the Amended Merger Agreement, substantially all of Evergy Kansas Central's outstanding equity compensation awards vested and were converted into a right to receive Evergy common stock and all of Great Plains Energy's outstanding equity compensation awards were converted into equivalent Evergy awards subject to the same terms and conditions at the Great Plains Energy merger exchange ratio of 0.5981. Merger Related Regulatory Matters KCC In May 2018, the KCC approved Great Plains Energy's, Evergy Metro's and Evergy Kansas Central's joint application for approval of the merger, including a settlement agreement that had been reached between Great Plains Energy, Evergy Metro, Evergy Kansas Central, KCC staff and certain other intervenors in the case. Through the joint application and settlement agreement, Great Plains Energy, Evergy Metro and Evergy Kansas Central agreed to the conditions and obligations listed below, in addition to other organizational, financing, customer service and civic responsibility commitments.

• Provide a total of $30.6 million of one-time bill credits to Kansas electric retail customers as soon as practicable following the close of the merger and the completion of Evergy Kansas Central's and Evergy Metro's cunent rate cases in Kansas. Of this total, $23 .1 million of the credits relate to Evergy Kansas Central's customers and the remaining $7.5 million of credits relate to Evergy Metro's Kansas customers.
• Provide a total of approximately $46 million in additional bill credits consisting of $11.5 million in annual bill credits to Kansas electric retail customers from 2019 through 2022. Of the annual amount, $8.7 million of the credits relate to Evergy Kansas Central's customers and the remaining $2.8 million of credits relate to Evergy Metro's Kansas customers.
• Provide for the inclusion of a total of $30.0 million of merger-related savings in Evergy Kansas Central's and Evergy Metro's cunent rate cases in Kansas. Of this total, $22.5 million of the savings are attributable to Evergy Kansas Central with the remaining $7 .5 million of savings attributable to Evergy Metro's Kansas jurisdiction.
• A five-year base rate moratorium for Evergy Kansas Central and Evergy Metro in Kansas that commenced following the conclusion ofEvergy Metro's Kansas rate case in December 2018. The moratorium is subject to certain conditions and does not include Evergy Kansas Central's or Evergy Metro's fuel recovery mechanisms and certain other cost recovery mechanisms in Kansas.
• Require both Evergy Kansas Central and Evergy Metro to file rate cases in Kansas in a fashion that would allow for updated electric utility rates to become effective upon the end of the five-year rate moratorium in December 2023.
• Participate in an Earnings Review and Sharing Plan for the years 2019 through 2022, which may result in Evergy Kansas Central and/or Evergy Metro being subject to refunding 50% of earned return on equity in excess of authorized return on equity to their Kansas customers.
• Maintain charitable contributions and community involvement in the Kansas service tenitories of Evergy Kansas Central and Evergy Metro at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.
• Commit that Evergy Kansas Central's and Evergy Metro's retail electric base rates will not increase as a result of the merger.
• Allow Evergy Kansas Central and Evergy Metro to recover a total of $30.9 million of merger transition costs consisting of $23.2 million for Evergy Kansas Central and $7.7 million for Evergy Metro's Kansas jurisdiction. Evergy Kansas Central and Evergy Metro have recorded these amounts as regulatory assets and they are being recovered over a ten-year period.

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MPSC In May 2018, the MPSC approved Great Plains Energy's, Evergy Metro's, Evergy Missouri West's and Evergy Kansas Central'sjoint application for approval of the merger, including two stipulations and agreements between these companies, MPSC staff and certain other intervenors in the case. Through the joint application and stipulations and agreements, Great Plains Energy, Evergy Metro, Evergy Missouri West and Evergy Kansas Central agreed to the conditions and obligations listed below, in addition to other organizational, financing, customer service and civic responsibility commitments.

• Provide a total of $29 .1 million of one-time bill credits to Missouri electric retail customers within 120 days following the close of the merger. Of this total, $14.9 million of the credits relate to Evergy Metro's Missouri customers and the remaining $14.2 million of credits relate to Evergy Missouri West's customers.
• Commit that Evergy Metro's and Evergy Missouri West's retail electric base rates will not increase as a result of the merger.
• Maintain charitable contributions and community involvement in the Missouri service territories of Evergy Metro and Evergy Missouri West at levels equal to or greater than their respective 2015 levels for 5 years following the closing of the merger.
• Provide a total of$3.0 million of support over 10 years to community agencies to promote low-income weatherization efforts.
• Support the recovery of a total of $16.9 million of merger transition costs in Evergy Metro's and Evergy Missouri West's 2018 rate cases, consisting of $9.7 million for Evergy Metro's Missouri jurisdiction and

         $7 .2 million for Evergy Missouri West. Evergy Metro and Evergy Missouri West recorded these amounts as regulatory assets and they are being recovered over a ten-year period.

Accounting Charges and Deferrals Related to the Merger The following pre-tax reductions of revenue, expenses and deferral were recognized following the consummation of the merger and are included in the Evergy Companies' consolidated statements of income and comprehensive income for 2018. Evergy Income Statement Line Expected Kansas Evergy Description Item Payment Period Evergy Central Metro (millions) One,-time bill credits Operating.*revenues (59~7) $ (23J) $ Annual bill credits Operating revenues 2019 - 2022 (10.5) (7.9) (2.6) Total impact to operating revenues (70,2) $ (3LO) $

                                                                                            ~' :*,, ,/,,,, '\.;,>'

(25:0) Charitable. contributions and community support Operating and maintenance $ Voluntary severance and accelerated equity compensation Operating and maintenance 2018 - 2019 47.9 44.2 2.6 Other transaction and transition costs Operating and mainte~i11ce 2.1 Reallocation and deferral of merger transition costs Operating and maintenance n/a (47.8) (13.8) (23.2) Total impact to op~rating ancl maintenance expense 51.9 $ (18.5) Total $ $ (82.9) $ (6.5) Reductions of revenue related to customer bill credits and expenses related to charitable contributions and community support were incmTed as a result of conditions in the MPSC and KCC merger orders and were recorded as liabilities in the amounts presented above following the consummation of the merger. Reductions of revenue for 87

annual bill credits for Evergy Kansas Central's and Evergy Metro's Kansas electric retail customers are recognized ratably in the twelve-month period preceding their payment. Voluntary severance and accelerated equity compensation represent costs related to payments for voluntary severance and change in control plans, as well as the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Evergy Kansas Central equity compensation awards. Other transaction and transition costs include merger success fees and fees for other outside services incurred. Reallocation and deferral of merger transition costs represents the net reallocation of incurred merger transition costs between Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West and the subsequent deferral of these transition costs to a regulatory asset for future recovery in accordance with the KCC and MPSC merger orders. Purchase Price Based on an evaluation of the provisions of ASC 805, Business Combinations, Evergy Kansas Central was determined to be the accounting acquirer in the merger. Pursuant to the Amended Merger Agreement, Great Plains Energy's common stock shares were exchanged for Evergy common stock shares at the fixed exchange rate of 0.5981. The total consideration transferred in the merger is based on the closing stock price ofEvergy Kansas Central on June 4, 2018, and is calculated as follows. (millions, except share amounts) Great Plains Energy restricted stock awards outstanding as of June 4, 2018 (204,825)

                                                                                            ,,..,,.,.,.=.,.,,..,,..,...,..,.,.,,...,...,.-,..,.,,.=

Exchange ratio 0.5981 E~frgy ¢~mll"lon 1>Lv"'"'"u",1 "" Closing price of Evergy Kansas Central common stock as of June 4, 2018 $ 54.00 Fair value of Great Plains Energy's equity compensation awards 12.5 Great Plains Energy's equity compensation awards, including performance shares and restricted stock, were replaced by equivalent Evergy equity compensation awards subject to substantially the same terms and conditions upon the closing of the merger. In accordance with the accounting guidance in ASC 805, a portion of the fair value of these awards is attributable to the purchase price as it represents consideration transferred in the merger. Purchase Price Allocation The fair value of Great Plains Energy's assets acquired and liabilities assumed as of June 4, 2018, was determined based on significant estimates and assumptions that are judgmental in nature. Third-party valuation specialists were engaged to assist in the valuation of these assets and liabilities. The significant assets and liabilities recorded at fair values as of the merger date include long-term debt, asset retirement obligations, pension and post-retirement plans, accumulated deferred income tax liabilities and certain other long-term assets and liabilities. The majority of Great Plains Energy's operations were subject to the rate-setting authority of the MPSC, the KCC and the Federal Energy Regulatory Commission (FERC) and were accounted for pursuant to GAAP, including the accounting guidance for regulated operations. The rate-setting and cost recovery provisions for Great Plains Energy's regulated operations provided revenue derived from costs including a return on investment of assets and liabilities included in rate base. Except for the significant assets and liabilities for which valuation adjustments 88

were made as discussed above, the fair values of Great Plains Energy's tangible and intangible assets and liabilities subject to these rate-setting provisions approximated their carrying values and the assets and liabilities did not reflect any adjustments to these amounts other than for amounts not included in rate base. The difference between the fair value and pre-merger carrying amounts for Great Plains Energy's long-term debt, asset retirement obligations and pension and post-retirement plans that were related to regulated operations were recorded as a regulatory asset or liability. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed were recognized as goodwill as of the merger date. The final purchase price allocation to Great Plains Energy's assets and liabilities as of June 4, 2018, is detailed in the following table. (millions) Property, plant and equipment, net 9,179.7 Other long-term assets, excluding goodwill 1,235.9 Current liabilities 1,673.9 Long-term debt, net 3,358.6 Total purchase price $ 6,975.7 The purchase price allocation in the table above reflects refinements made to the preliminaiy fair values of long-term liabilities, excluding long-term debt included in the Evergy Companies' combined 2018 annual report on Fonn 10-K. These refinements include adjustments associated with deferred income taxes that resulted in a decrease to goodwill of $2.3 million. Impact of Merger The impact of Great Plains Energy's subsidiaries on Evergy's revenues in the consolidated statement of comprehensive income for 2018 was an increase of$1,66I.1 million. The impact of Great Plains Energy's subsidiaries on Evergy's net income attributable to Evergy in the consolidated statement of comprehensive income for 2018 was an increase of $236.2 million. Evergy has incurred total merger-related costs, including reductions of revenue for customer bill credits, of $148.0 million for 2018 and $11.9 million for 2017. 89

Pro Forma Financial Information The following unaudited pro forma financial information reflects the consolidated results of operations of Evergy as if the merger transactions had taken place on January 1, 2017. The unaudited proforma infonnation was calculated after applying Evergy's accounting policies and adjusting Great Plains Energy's results to reflect purchase accounting adjustments. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of Evergy. 2018 2017 (millions, except per share amounts) Operating revenues $ 5,334.6 $ 5,279.2 Net income attributable to Evergy, Inc. 714.3 468.9 Basic earnings per common share $ 2.67 $ 1.73 Diluted common share $ 2.67 $ 1.73 Evergy, Evergy Kansas Central and Great Plains Energy inctmed non-recurring costs and a gain directly related to the merger that have been excluded in the pro forma earnings presented above. On an after-tax basis, these non-recurring merger-related costs and gain incmTed by Evergy, Evergy Kansas Central and Great Plains Energy included:

     *   $74.7 million and $14.8 million in 2018 and 2017, respectively, of certain after-tax merger-related transition and transaction costs;
     *   $44.4 million in 2018 of after-tax reductions in operating revenues related to one-time customer bill credits; 0
         $278.0 million of after-tax financing charges in 2017 related to Great Plains Energy's previously contemplated acquisition of Evergy Kansas Central; and
     *   $36.6 million and $7 .3 million in 2018 and 2017, respectively, of after-tax mark-to-market gains on interest rate swaps for which cash settlement was contingent upon the consummation of the merger.

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

2019 2018 Revenues (millions) Residential $ 1,908.1 $ 1,578.8 Commercial 1,781.6 1,356.4 Industrial 621.6 527.8 Other retail 47. l 30.6 Total electric retail Wholesale 327.5 404.4 Transmission 309.2 308.l Industrial steam and other 24.5 17.9 Total revenue from contracts with customers Other 128.2 51.9 revenues 90

Evergy Kansas Central 2019 2018 Revenues (millions) Commercial 709.1 702.8 Other retail 21.0 20.0 1,965.6 Wholesale 346.1 288.9 Other 5.8 6.0

                                                                                                                      $           2,606.6 Other                                                                                                        63.1                     8.3 Evergy Metro<a)                                                                                       2019                   2018 Revenues                                                                                                       (millions) 735.6 Commercial                                                                                                 786.1                   794.8 138 ..8 Other retail                                                                                                 16.3                   10.4 Wholesale                                                                                                   70.9                    53.5 14;5 Other                                                                                                         2.8                    4.4 Other                                                                                                        63.6                    71.1 Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

Retail Revenues The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed on a monthly basis at the tariff rates approved by the KCC and MPSC based on customer kWh usage. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Evergy Kansas Central and Evergy Metro. Prior to the adoption of ASC 606 on January 1, 2018, Evergy Metro recorded sales taxes and franchise fees collected from its Missouri customers gross on Evergy Metro's statements of comprehensive income within operating revenues and taxes other than income taxes. 91

Wholesale Revenues The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities. For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice. Wholesale sales within the SPP Integrated Marketplace are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the MWh quantity purchased. Wholesale sales from bilateral contracts are billed monthly based on the contractually determined transaction price and the kWh quantity purchased. Transmission Revenues The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP. To enable optimal use of the diverse generating resources in the SPP region, the Evergy Companies, as well as other transmission owners, allow the SPP to access and operate their transmission networks. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by FERC, which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices. The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Evergy Kansas Central's transmission revenues from SPP include amounts that Evergy Kansas Central pays to the SPP on behalf of its retail electric customers for the use of Evergy Kansas Central's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Evergy Kansas Central pays on behalf of its retail customers. Evergy Metro and Evergy Missouri West do not pay the SPP for their retail customers' use of the Evergy Metro and Evergy Missouri West legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP. The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price detennined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity purchased. Industrial Steam and Other Revenues Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to Evergy Missouri West's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage. Optional Exemption Evergy, Evergy Kansas Central and Evergy Metro do not disclose the value of unsatisfied performance obligations on certain bilateral wholesale contracts with an original expected duration of greater than one year for which they recognize revenue in the amount they have the right to invoice. 92

4. The Evergy Companies' receivables are detailed in the following table. December 31 2019 Evergy (millions) Customer accounts receivable - Customer accounts receivable - unbilled 104.0 91.2 Other receivables 127.8 95.0 Allowance for doubtful accounts (9.2) Total 193. Evergy Kansas Central Customer accounts receivable - billed $ Customer accounts receivable - unbilled 49.7 16.6 Other receivables .6 Allowance for doubtful accounts (3.8) (3.9) Total 84.3 Evergy Metro Customer accounts receivable - billed $ 3.1 Customer accounts receivable - unbilled 26.5 42.9 Other receivables 15.8 Allowance for doubtful accounts (4.6) (3.8)

                                                                                                    $         48.l         $         62.7 Evergy's, Evergy Kansas Central's and Evergy Metro's other receivables at December 31, 2019 and 2018, consisted primarily ofreceivables from partners in jointly-owned electric utility plants, wholesale sales receivables and certain receivables related to alternative revenue programs. As of December 31, 2019, other receivables for Evergy, Evergy Kansas Central and Evergy Metro included receivables from contracts with customers of $42.0 million,

$3 7. 7 million and $1.2 million, respectively. As of December 31, 2018, other receivables for Evergy, Evergy Kansas Central and Evergy Metro included receivables from contracts with customers of $65.8 million, $55.9 million and $5.5 million, respectively. The Evergy Companies recorded bad debt expense related to contracts with customers as summarized in the following table. 2019 2018 2017 (millions) Evergy $ 20.2 10.3 Evergy Kansas Central 7.3 8.5 10.3 13.l Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. Sale of Accounts Receivable Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell an undivided percentage ownership interest in their retail electric accounts receivable to independent outside investors. These sales of the undivided percentage ownership interests in accounts receivable to independent outside investors are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets. At December 31, 2019 and 2018, Evergy's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $339.0 million and $365.0 million, respectively. At December 31, 2019 and 2018, Evergy Kansas Central's accounts receivable pledged as collateral and the corresponding short-term collateralized note payable were $171.0 million and $185 .0 million, respectively. 93

At December 31, 2019 and 2018, Evergy Metro's accounts receivable pledged as collateral and the c01Tesponding short-term collateralized note payable were $118.0 million and $130.0 million, respectively. Each receivable sale facility expires in September 2020. Evergy Kansas Central's facility allows for $185 .0 million in aggregate outstanding principal amount of borrowings from mid-October through mid-June and then $200.0 million from mid-June through the expiration date of the facility. Evergy Metro's facility allows for $130.0 million in aggregate outstanding principal amount of borrowings at any time. Evergy Missomi West's facility allows for $50.0 million in aggregate outstanding principal amount of borrowings from mid-November through mid-June and then $65.0 million from mid-June through the expiration date of the facility.

5. RATE MATTERS AND REGULATION KCC Proceedings Evergy Kansas Central 2019 Transrnission Delivery Charge (TDC)

In March 2019, the KCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the FERC transmission formula rate (TFR). The new prices were effective in April 2019 and are expected to decrease Evergy Kansas Central's annual retail revenues by $7.7 million. Evergy Metro 2019 TDC In April 2019, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May 2019 and are expected to decrease Evergy Metro's annual retail revenues by $8.3 million. Evergy Kansas Central Fuel Recovery Mechanism Recovery of 8% of Jeffrey Energy Center (JEC) As part of the non-unanimous stipulation and agreement approved by the KCC in September 2018 in Evergy Kansas Central's 2018 rate case, it was agreed that in the event that Evergy Kansas Central purchased the 8% ownership interest in JEC that it had historically leased from a trust it would be entitled to file a request with the KCC to recover operating and maintenance and capital costs associated with the 8% ownership through its fuel recovery mechanism as these amounts were not reflected in Evergy Kansas Central's rates established as part of the 2018 rate case. In the first quarter of 2019, Evergy Kansas Central entered into an agreement with the trust to extend its lease of the 8% interest in JEC from the previous expiration date of January 2019 to August 2019 and to then purchase the 8% ownership interest from the trust at the time the lease expired. Pursuant to the agreement, Evergy Kansas Central's purchase of the 8% ownership interest of JEC closed in August 2019. In March 2019, Evergy Kansas Central filed an application with the KCC to request recovery through its fuel recovery mechanism of deferred lease expense and operating and maintenance expense incurred during the lease extension and future operating and maintenance expense subsequent to the purchase of the 8% ownership interest in JEC. In September 2019, the KCC issued an order finding that the lease extension and subsequent purchase of the 8% ownership interest by Evergy Kansas Central were not prudent and disallowed the recovery from retail customers of all associated capital and operating costs that were incurred during the lease extension and will be incurred in the future. The KCC order also provided that Evergy Kansas Central be allowed to retain any wholesale electricity sales associated with the 8% ownership interest of JEC. As a result of the KCC order in September 2019, Evergy and Evergy Kansas Central recorded an $8.4 million pre-tax loss to operating and maintenance expense in their consolidated statements of income and comprehensive income in 2019 associated with the write-off of a regulatory asset for the deferred lease expense and other operating expenses. Evergy Kansas Central and Evergy Metro Earnings Review and Sharing Plan (ERSP) As part of their merger settlement agreement with the KCC, Evergy Kansas Central and Evergy Metro agreed to participate in an ERSP for the years 2019 through 2022. Under the ERSP, Evergy Kansas Central's and Evergy Metro's Kansas jurisdiction are required to refund to customers 50% of annual earnings in excess of their authorized 94

return on equity of 9.3% to the extent the excess earnings exceed the amount ofEvergy Kansas Central's and Evergy Metro's annual merger bill credits for the year being measured. As of December 31, 2019, Evergy Kansas Central and Evergy Metro estimate their 2019 annual earnings will not result in a significant refund obligation. Evergy Kansas Central and Evergy Metro expect to file their 2019 earnings calculations with the KCC in March 2020. The final refund obligation, if any, will be decided by the KCC and could vaiy from the current estimate. MPSC Proceedings Evergy Missouri West Other Proceedings In December 2018, the Office of the Public Counsel (OPC) and the Midwest Energy Consumers Group (MECG) filed a petition with the MPSC requesting an AAO that would require Evergy Missouri West to record a regulatory liability for all revenues collected from customers for return on investment, non-fuel operations and maintenance costs, taxes including accumulated deferred income taxes, and all other costs associated with Sibley Station following the station's retirement in November 2018. In October 2019, the MPSC granted OPC's and MECG's request for anAAO and required Evergy Missouri West to record to a regulatory liability the revenues discussed above for consideration in Evergy Missouri West's next rate case, which is expected to be completed no later than 2022. Depending on the MPSC's decision in this next rate case, Evergy Missouri West could be required to refund to customers all or a portion of amounts collected in revenue for Sibley Station since December 2018 or, alternatively, could be required to make no refunds. As a result of the MPSC order, Evergy has recorded a regulatory liability of $10.2 million as of December 31, 2019 for the estimated amount ofrevenues that Evergy Missouri West has collected from customers for Sibley Station since December 2018 that Evergy has detennined is probable of refund. Evergy expects that it will continue to defer such amounts as collected from customers until new rates become effective in Evergy Missouri West's next rate case. The accrual for this estimated amount does not include certain revenues collected related to Sibley Station that Evergy has determined to not be probable of refund in the next rate case based on the relevant facts and circumstances. While Evergy has determined these additional revenues to not be probable of refund, the ultimate resolution of this matter in Evergy Missouri West's next rate case is uncertain and could result in an estimated loss ofup to approximately $12 million in excess of the amount accrued per year until Evergy Missouri West's new rates become effective. Evergy's regulatory liability for probable refunds as of December 31, 2019 and estimated loss in excess of the amount accrued represent estimates that could change significantly based on ongoing developments including as a result of an appeal of the MPSC order, decisions in other regulat01y proceedings that establish precedent applicable to this matter and positions of parties on this issue in a future Evergy Missouri West rate case. FERC Proceedings In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate is the most material and significant component in the retail rate calculation for Evergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs through the TDC. Evergy Kansas Central TFR In the most recent three years, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by approximately:

    *    $6.8 million increase effective in January 2020; 0
         $11.2 million decrease effective in Januaiy 2019; and
    *    $2.3 million increase effective in January 2018.

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

    *   $1. 7 million decrease effective in January 2020;
    *   $2.8 million decrease effective in January 2019; and
    *   $3.7 million increase effective in January 2018.

Regulatory Assets and Liabilities The Evergy Companies have recorded assets and liabilities on their consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded if they were not regulated. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers. Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to the Evergy Companies; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. The Evergy Companies continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to any or all of the Evergy Companies' operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets. 96

The Evergy Companies' regulatory assets and liabilities are detailed in the following tables. 2019 2018 Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Regulatory Assets (millions) Debt reacquisition costs 105.8 97.3 7.5 113.5 104.1 8.2 Asset retirement obligations fair value adjustment Cost of removal 129.3 94.4 34.9 102.4 65.7 36.7 Analog meter unrecovered investment 29.9 29.9 35.6 35.6 Iatan No. 1 and common facilities 7.1 2.8 7.4 2.9 Kansas property tax surcharge 21.7 18.7 3.0 33.1 23.7 9.4 La Cygne environmental costs 13.7 11.2 2.5 14.8 12.2 2.6 Fuel recovery mechanisms 34.7 16.6 91.2 7.1 41.7 Transmission delivery charge 0.8 0.8 Pension and other post-retirement benefit non-service costs 31.8 7.4 15.6 13.6 5.2 4.8 Merger transition costs 42.3 20.3 15.6 47.0 22.6 17.3 Total 1,972.2 823.7 559.8 2,061.8 797.5 626.1 Total noncurrent regulatory assets $ 1,740.5 $ 730.4 $ 464.4 $ 1,757.9 $ 700.4 $ 495.2 97

2019 2018 Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Regulatory LiabiJities (millions) Taxes.refundable through future rates $ 1,656.5 $ 856.4 568.9 $ 1,703.6 $ 853.2 $ 609.2 Deferred regulatory gain from sale leaseback 53.6 53.6 59.1 59.1 Emission allowances 50.1 50.l 54.1 54.1 Nuclear decommissioning 267.3 116.5 150.8 188.2 84.5 103.7 Pension and post-retirement costs 59.3 31.5 20.3 28.3 25J Jurisdictional allowance for funds used during constrnction 28.7 28.7 30.3 30.3 Ba Cygne leasehold dismantling costs 29.6 Cost of removal 49.1 Kansas .tax credits 17.0 17.0 16.6 Purchase power agreement 7.4 7.4 8.8 8.8 Merger customer credits 7.5 Fuel recovery mechanisms Total 2,311.6 1,174.8 803.6 2,329.0 1,121.3 847.1 Total noncurrent regulatory liabilities $ 2,248.3 $ 1,132.5 $ 792.2 $ 2,218.8 $ 1,101.8 $ 794.3 The following summarizes the nature and period of recovery for each of the regulatory assets listed in the table above. Pension and post-retirement costs: Represents unrecognized gains and losses and prior service costs that will be recognized in future net periodic pension and post-retirement costs, pension settlements amortized over various periods and financial and regulatory accounting method differences that will be eliminated over the life of the pension plans. Of these amounts, $735.4 million, $359.9 million and $312.9 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, are not included in rate base and are amortized over various periods. Additionally, $288.4 million, ($23 .6) million and $131.1 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, represent differences between pension and post-retirement costs under GAAP and pension and post-retirement costs for ratemaking that will be recovered or refunded in future rates and differences in accumulated unrecognized gains and losses and prior service costs between Evergy and Evergy Metro due to Evergy Metro electing not to apply "push-down accounting" related to the merger. Debt reacquisition costs: Includes costs incurred to reacquire and refinance debt. These costs are amortized over the term of the new debt or the remaining lives of the old debt issuances if no new debt was issued and are not included in rate base. Debt fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West long-term debt at fair value in connection with the merger. Amount is amortized over the life of the related debt and is not included in rate base. Asset retirement obligations fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West AROs at fair value in connection with the merger. Amount is amortized over the life of the related plant and is not included in rate base. 98

Depreciation: Represents the difference between regulatory depreciation expense and depreciation expense recorded for financial reporting purposes. These assets are included in rate base and the difference is amortized over the life of the related plant. Cost of removal: Represents amounts spent, but not yet collected, to dispose of plant assets. This asset will decrease as removal costs are collected in rates and is included in rate base. Asset retirement obligations: Represents amounts associated withAROs as discussed further in Note 7. These amounts are recovered over the life of the related plant and are not included in rate base. Analog meter unrecovered investment: Represents the deferral ofunrecovered investment ofretired analog meters. Of this amount, $21.6 million is not included in rate base for Evergy and Evergy Kansas Central and is being amortized over a five-year period. Treasury yield hedges: Represents the effective portion of treasury yield hedge transactions. Amortization of this amount will be included in interest expense over the te1m of the related debt and is not included in rate base. Iatan No. 1 and common facilities: Represents depreciation and carrying costs related to Iatan No. 1 and common facilities. These costs are included in rate base and amortized over various periods. Iatan No. 2 construction accounting costs: Represents the construction accounting costs related to Iatan No. 2. These costs are included in rate base and amortized through 2059. Kansas property tax surcharge: Represents actual costs incurred for property taxes in excess of amounts collected in revenues. These costs are expected to be recovered over a one-year period and are not included in rate base. Disallowed plant costs: The KCC originally disallowed certain costs related to the Wolf Creek plant. In 1987, the KCC revised its original conclusion and provided for recovery of an indirect disallowance with no return on investment. This regulatory asset represents the present value of the future expected revenues to be provided to recover these costs, net of the amounts amortized. La Cygne environmental costs: Represents the deferral of depreciation and amortization expense and associated carrying charges related to the La Cygne Station environmental project. This amount will be amortized over the life of the related asset and is included in rate base. Deferred customer programs: Represents costs related to various energy efficiency programs that have been accumulated and deferred for future recovery. Of these amounts, $10.2 million for Evergy and $8.3 million for Evergy Metro are not included in rate base and are amortized over various periods. Fuel recovery mechanisms: Represents the actual cost of fuel consumed in producing electricity and the cost of purchased power in excess of the amounts collected from customers. This difference is expected to be recovered over a one-year period and is not included in rate base. Solar rebates: Represents costs associated with solar rebates provided to retail electric customers. These amounts are not included in rate base and are amortized over various periods. Transmission delivery charge: Represents costs associated with the transmission delivery charge. The amounts are not included in rate base and are amo1iized over a one-year period. Wolf Creek outage: Represents deferred expenses associated with Wolf Creek's scheduled refueling and maintenance outages. These expenses are amortized during the period between planned outages and are not included in rate base. Pension and other post-retirement benefit non-service costs: Represents the non-service component of pension and post-retirement net benefit costs that are capitalized as authorized by regulators. The amounts are included in rate base and are recovered over the life of the related asset. Retired generation facilities: Represents amounts to be recovered for facilities that have been retired and are probable of recovery. Merger transition costs: Represents recoverable transition costs related to the merger. The amounts are not included in rate base and are recovered from retail customers through 2028. 99

Other assets: Includes various regulatory assets that individually are small in relation to the total regulatory asset balance. These amounts have various recovery periods and are not included in rate base. The following summarizes the nature and period of amortization for each of the regulatory liabilities listed in the table above. Taxes refundable through future rates: Represents the obligation to return to customers income taxes recovered in earlier periods when corporate income tax rates were higher than current income tax rates. A large portion of this amount is related to depreciation and will be returned to customers over the life of the applicable property. Deferred regulatory gain from sale leaseback: Represents the gain Evergy Kansas South recorded on the 1987 sale and leaseback of its 50% interest in La Cygne Unit 2. The gain is amortized over the term of the lease. Emission allowances: Represents deferred gains related to the sale of emission allowances to be returned to customers. Nuclear decommissioning: Represents the difference between the fair value of the assets held in the nuclear decommissioning trust and the amount recorded for the accumulated accretion and depreciation expense associated with the asset retirement obligation related to Wolf Creek. Pension and post-retirement costs: Includes pension and post-retirement benefit obligations and expense recognized in setting prices in excess of actual pension and post-retirement expense. Jurisdictional allowance for funds used during construction: Represents AFUDC that is accrued subsequent to the time the associated constmction charges are included in prices and prior to the time the related assets are placed in service. The AFUDC is amortized to depreciation expense over the useful life of the asset that is placed in service. La Cygne leasehold dismantling costs: Represents amounts collected but not yet spent on the contractual obligation to dismantle a portion of La Cygne Unit 2. The obligation will be discharged as the unit is dismantled. Cost of removal: Represents amount collected, but not yet spent, to dispose of plant assets. This liability will be discharged as removal costs are incurred. Kansas tax credits: Represents Kansas tax credits on investment in utility plant. Amounts will be credited to customers subsequent to the realization of the credits over the remaining lives of the utility plant giving rise to the tax credits. Purchase power agreement: Represents the amount included in retail electric rates from customers in excess of costs incurred under purchase power agreements. Amounts are amortized over a five-year period. Merger customer credits: Represents one-time merger bill credits to Evergy Metro's Kansas electric retail customers that were provided in the first quaiier of 2019. Fuel recovery mechanisms: Represents the amount collected from customers in excess of the actual cost of fuel consumed in producing electricity and the cost of purchased power. This difference is expected to be refunded over a one-year period and is not included in rate base. Sibley AAO: Represents the estimated amount of revenues that Evergy Missouri West has collected from customers for Sibley Station that Evergy has determined is probable of refund. These amounts were recorded in connection with an AAO granted by the MPSC in October 2019 and deferred amounts will be considered by the MPSC in Evergy Missouri West's next rate case. Refund of tax reform benefits: Represents amounts collected from customers in 2018 related to federal income tax in excess of the income tax owed by the Evergy Companies as a result of the lower federal income tax rate enacted by the Tax Cuts and Jobs Act (TCJA) and were refunded to customers in 2019. Other regulatory liabilities: Includes various regulatory liabilities that individually are relatively small in relation to the total regulatory liability balance. These amounts will be credited over various periods. 100

6. Accounting rules require goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impainnent exists. Evergy's impairment test for the $2,336.6 million of goodwill that was recorded as a result of the Great Plains Energy and Evergy Kansas Central merger was conducted as of May 1, 2019. The goodwill impainnent test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of repo1iing unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill.

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

Evergy Kansas Central, Evergy Metro and Evergy Missouri West have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). In addition, Evergy Kansas Central and Evergy Metro have AROs related to decommissioning Wolf Creek and the retirement of wind generation facilities. The following table summarizes the change in the Evergy Companies' AROs. Evergy Kansas Evergy Central Evergy Metro(*) 2019 2018 2019 2018 2019 2018 (millions) Beginning.balance $ 687.1 $ 405.l $ $ 405.1 $ 261:0 $ 266.3 Liabilities assumed upon merger with Great Plains Energy 412.2 Liabilities incurred during the year 7.4 7:4 Revision in timing and/or estimates (22.3) (150.1) (12.4) (138.7) (9.9) (11.4) Settlements.* (17.8). (2.5) (EU) Accretion 27.1 34.9 19.0 19.3 5.0 19.2 Ending balance $ 674.1 $ 687.1 $ 272.9 $ 281.1 $ 253:6 $ 261.0 Less: current portion (71.3) (49.8) (23.3) (17.1) (36.1) (29.2) Total noncurrent.asset retirement obligation * * $ 602.8 $ 637.3 $ .249.6 264.0 $ 217.5 $ 231.8 (a) Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. See Note 2 for more inf01mation regarding Evergy Metro's and Evergy Missouri West's ARO liabilities that Evergy assumed as a result of the merger. 101

In 2018, Evergy and Evergy Kansas Central recorded a $127.0 million revision in estimate primarily related to Evergy Kansas Central's ARO to decommission its 47% indirect ownership share of Wolf Creek.

8. PROPERTY, PLANT AND EQUIPMENT The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.

December 31, 2019 Evergy Evergy Kansas Central Evergy Metro (millions) Electric plant ,in service $ 27;768.8 $ 13,538.1 $ 10,776.5 Electric plant acquisition adjustment 740.6 740.6 Plant in service 18,215.7 9,327.2 6,504.5 269.9 Nuclear fuel, net 128.5 63.9 64.6 Plarit tCJ be retired, net (a) 1:0~ 1.0 Net property, plant and equipment $ 19,184.4 $ 9,864.9 $ 6,839.0 December 31, 2018 Evergy Evergy Kansas Central Evergy Metro (millions) Electric plant acquisition adjustment 740.6 740.6 Plant in service 17,963.2 9,274.5 6,416.7 Nuclear fuel, net 133.1 66.1 67.0 retired, net Net property, plant and equipment $ 18,782.5 $ 9,718.3 $ 6,688.1 <*J As of December 31, 2019 and 2018, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives. The following table summarizes the property, plant and equipment ofVIEs for Evergy and Evergy Kansas Central. 2019 2018 (millions) 102

Depreciation Expense The Evergy Companies' depreciation expense is detailed in the following table. 2019 2018 (millions)

                                                                                          $        786.3      $         567.9    $       350.0 Evergy Kansas Central (a)                                                                          425.8                371.3            350.0 EVergy Metro                                                                                       262.7                235:3 ..         i:if~.

(a) Approximately $7.1 million, $7.1 million and $8.3 million of depreciation expense in 2019, 2018 and 2017, respectively, was attributable to property, plant and equipment ofVIEs. (bl Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

9. JOINTLY-OWNED ELECTRIC UTILITY PLANTS Evergy's, Evergy Kansas Central's and Evergy Metro's share of jointly-owned electric utility plants at December 31, 2019, are detailed in the following tables.

Evergy Jeffrey Wolf Creek La Cy~ne Iatan No.1 Iatan No. 2 Iatan Energy State Unit Units al Unit Unit Common Center Line (millions, except MW amounts) Evergy's share 94% fQOo/o 88o/o 73% **100% 40% Utility plant $Jj827:8 $2,202.4: .718.9 $1,379.7 $484.3 $2A28.6 Accumulated depreciation 1,835.3 751.6 269.2 447.2 116.4 918.1 75.9 Nuclear fuel, net Construction work in progress 141.4 21.0 54.4 23.5 9.4 38.9 2.8 2020 actt-edited capaeity-MWs .*** *~50 NA 2,186 (a) The VIE consolidated by Evergy and Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 19 for additional infonnation. Evergy Kansas Central Jeffrey Wolf Creek La Cyl.!ne Energy State Unit Units'1aJ Center Line (millions, except MW amounts) Evergy Kansas Ce11tral's share 47% so%** Accumulated depreciation 862.2 426.5 832.5 75.9 Nu.cleal"ftie1,. net Construction work in progress 67.3 14.6 34.9 2.8 2020accredited PWacity-MW~ 552. 699 2,011 196 (a) The VIE consolidated by Evergy and Evergy Kansas Central holds its 50% leasehold interest in La Cygne Unit 2. This 50% leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 19 for additional information. 103

Metro Wolf Creek La Cygne Iatan No. 1 Iatan No. 2 Iatan Unit Units Unit Unit Common (millions, except MW amounts) Accumulated depreciation 973.1 325.1 214.9 393.0 99.8 Construction work in progress 74.1 6.4 25.9 3.5 1.3 Each owner must fund its own portion of the plant's operating expenses and capital expenditures. The Evergy Companies' share of direct expenses are included in the appropriate operating expense classifications in Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements.

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

For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014. Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees ofEvergy Kansas Central and Evergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans. The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for ratemaking to be recognized as a regulatory asset or liability. This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans. For 2019, Evergy and Evergy Metro recorded pension settlement charges of $15.6 million and $23.0 million, respectively, as a result of accelerated pension distributions related to voluntary severance programs. Evergy and Evergy Metro deferred substantially all of the charges to a regulatory asset and expect to recover these amounts over future periods pursuant to regulatory agreements. 104

The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Change in projected benefit obligation (PBO) (millions) Service cost 79.1 29.0 50.1 2.5 1.1 1.4 Contribution by participants 8.8 1.9 6.9 Benefits paid (180.5) (136.9) (42.3) (27.7) (13.0) (14.7) Other (1.6) (6.0) Change in plan assets Actual return on plan assets 284.0 130.5 153.5 30.0 20.0 10.0 Benefits paid (175.6) (134.4) (41.2) (26.6) (12.7) (13.9) Other (1.6) (6.0) Funded status at December 31, 2019 $ (985.4) $ (481.3) $ (480.7) $ (24.4) $ (18.2) $ (6.2) Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Amounts recognized in the consolidated balance sheets (millions) Current pension and other post-retirement liability (5.6) (3.0) (1.3) (1.9) (1.0) (0.9) Net amount recognized before regulatory treatment (985.4) (481.3) (480.7) (24.4) (18.2) (6.2) Net amount recognized at December 31, 2019 $ (531.3) $ (126.4) $ (288.4) $ (28.8) $ (21.1) $ (19.2) Actuarial (gain) loss $ 439.7 $ 342.3 $ 189.4 $ (5.7) $ (4.2) $ (4.9) Net amount recognized at December 31, 2019 $ 454.1 $ 354.9 $ 192.3 $ (4.4) $ (2.9) $ (13.0) 105

Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Change in projected benefit obligation (PBO) (millions) PBO at January 1,.2018 $1,367.0 $1,367.0 $1,331.7 $ 138.6 $ 138.6 $ 133.2 Service cost 60.7 32.2 48.6 2.3 1.3 2.0 Interest cost 82.5 50.7 49.9 8.0 5.0 4.8 Contribution by participants 5.6 1.8 6.6 Pli~ amendt11ents 13.4 11.4 2.0 Actuarial gain (98.8) (100.1) (89.6) (11.3) (2.6) (18.0) Be11efits.paid * (137.9) (97.9) (70.2) (17.3) (10.5) (12.9) Obligations assumed upon merger with Great Plains Energy 1,275.9 123.4 Other (9.4) (4.4) PBO at December 31, 2018 $2,553.4 $1,258.9 $1,272.4 $ 249.3 $ 133.6 $ 115.7 Change in plan assets Fair value of plan assets at January 1, 2018 $ 887.0 $ 887.0 $ 848.4 $ 124.1 $ 124.1 $ 115.8 Actual return on plan

        " ' 'u,,, "     ,/," ," ' {,

(79.7) (30.9) (60.1) (75) (7.4) Contributions by employer and participants 114.5 47.9 80.3 11.6 3.2 11.4 (134.0) (95.0) {69.8) (16.7) (10::2) (12.4) Assets acquired upon merger with Great Plains Energy 825.0 111.8 Fair value of plan assets at December 31, 2018 $1,603.4 $ 804.6 $ 798.8 $ 223.3 $ 109.7 $ 113.6 F:undei:lstatuSat De¢ember 31; 2018 ./1 $ (950.0) $ (454.3) $ (473.6) $ (26:0) $ (23;9) $ (2.1) Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Amounts recognized in the consolidated balance sheets (millions)

                                                           $            $                        $     17.5  $          $   17.5 Current pension and other post-retirement liability          (4.4)       (2.6)      (0.5)         (1.7)     (0.9)       (0.8)
   <Noncun*ent pension 1iability anclotli~.r post-

... **

• i;~tifementJi~bility * * ** * * (945.6) (45L7) (473.1) (41.8) (23.0) (18'.8)

Net amount recognized before regulatory treatment (950.0) (454.3) (473.6) (26.0) (23.9) (2.1)

 *.. Abqunml~ted OGI (lf r~gulatory asset/Hability              419.9       337.5       230.1          (6,0)      0.8      (19,1)

Net amount recognized at December 31, 2018 $ (530.1) $ (116.8) $ (243.5) $ (32.0) $ (23.1) $ (21.2)

Am,ounts in accumulated OCI of regulatory asset/

Hability notyetrecog11ized as a,compoJJ.ent of net

   ?penodiclienefit.cost:

Actuarial (gain) loss $ 403.6 $ 323.2 $ 226.3 $ (7.8) $ (1.0) $ (11.0) 16.3 14.3 3.8 1.8 1.8 (8.1) Net amount $ 419.9 $ 337.5 $ 230.1 $ $ 0.8 $ 106

As of December 31, 2019 and 2018, Evergy's pension benefits include non-qualified benefit obligations of $49.4 million and $46.9 million, respectively, which are funded by trusts containing assets of $45.5 million and $43.8 million, respectively. As of December 31, 2019 and 2018, Evergy Kansas Central's pension benefits include non-qualified benefit obligations of $26.0 million and $24.8 million, respectively, which are funded by trusts containing assets of $31. 7 million and $30.6 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 14 for more information on these amounts. Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Year Ended December 31, 2019 Evergy Central Metro Evergy Central Metro Components of net periodic benefit costs (millions) Prior service cost 1.9 1.7 0.9 0.5 0.5 Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $ 202.9 $ 75.5 $ 36.8 $ 0.5 $ (6.8) $ 7.7 Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Year Ended December 31, 2018 Evergy Central Metro Evergy Central Metro Components of net periodic benefit costs (millions) 'i s~iyice c:bst *... Interest cost 82.5 50.7 49.9 8.0 5.0 4.8 Prior service cost 0.7 0.7 0.7 0.5 0.5 0.1 Intercompany allocations

>~i~~hferti4t<:)~~n~fi(costs ....

Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities

*. cw:fent   yciar*rtef(ia1n) loss .                                                                                                25 .9 Amortization of gain (loss)                                          (32.6)                   (32.6)                           (45.1)                       0.6           0.6          0.2 f,Prfotservice cost ..                                                    i3)it < , 11i                                              . 2.(f Amortization of prior service cost                                      (0.7)                      (0.7)                           (0.7)                   (0.5)         (0.5)        (0.1)
   . )'otatrt:6()gnizidiii;OCI()rre,gulatbr/aisef1liabilitf ..'-'-'-'***__4"""7_:3...;...._._::"'""(3.....5_-""1)_*...;;........(__1..;..7......9.....       5:0         ll.8*.
                                                                                                                                                    )-'------'-_...;.-------'---.... > '{1~:9)

Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $ 145.7 $ 34.0 $ 50.0 $ 4.7 $ 9.0 $ (11.2) 107

Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Kansas 2017 Central Central (millions) Service cost $ 28:7 $ 44.2 $ l .~

                                                                                                                     ')

Interest cost 52.4 52.4 52.6 5.5 5.5 5.4 on (53.6) Prior service cost 0.7 0.7 0.7 0.5 0.5 Recognized net actuarial loss 26.9 26.9 49.0 (0.8) (0.8) (0.5) Settlement and special termination benefits 0.4 0.4 16.3 Net periodic benefit costs before regulatory adjustment and intercompany allocations 55.5 111.6 (0.5) Regulatory adjustment 14.5 14.5 (9.2) (1.9) (1.9) 1.3 Intercompany allocations (37.l) n/a (i.5) Net periodic benefit costs 70.0 70.0 65.3 (2.4) (2.4) 4.3 Other assets and benefit obligations or assets/liabilities Current year net (gain) loss 47.1 71.3 (5.8) (5.8) 3.0 Amortization of gain Amortization of prior service cost in or regulatory* asset/fial:!ility Total recognized in net periodic benefit costs and OCI or regulatory asset/liability $ 89.5 $ 89.5 $ 71.0 $ (7.9) $ (7.9) $ 7.8 For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset into net periodic benefit cost. The Evergy Companies ammiize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. Evergy and Evergy Kansas Central amortize the net actuarial (gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor. Evergy Metro amortizes the net actuarial (gain) loss on a rolling five-year average basis. The estimated amounts to be amortized in 2020 are detailed in the following table. Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro (millions) Actuarial (gain) loss amortization $ 45.4 $ 33.9 $ l $ 0.2 $ $ (0.6) Prior service cost amortization 1.8 1.6 0.8 0.5 0.5 108

Pension and other post-retirement benefit plans with the PBO, ABO or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following tables. Kansas Evergy December 31, 2019 Evergy Central Metro (millions) Pension plans with the PBO in excess of plan assets

                                                                                                                     .4 890.7 Accumulated benefit obligation                                                         $ 2,390.5  $ 1,196.8    $ 1,170.2 890.7 Other post-retirement benefit plans with the APBO in excess of plan Fair value of plan assets                                                                  239.9       120.5       119.4 Kansas      Evergy December 31, 2018                                                                       Evergy      Central      Metro (millions)
                                                                                      $ 2,257:9               $ 1,096:7 Pension plans with the PBO in excess of plan assets 1

Fair value of plan assets 1,603.4 804.6 798.8 Accumulated benefit obligation $ 2,257.9 $ 1,139.1 $ 1,096.7 798 ..8 Other post-retirement benefit plans with the APBO in excess of plan assets

                                                                                                 $    133,6   $    57.7 Fair value of plan assets                                                                 223.3       109.7        38.2 The expected long-term rate of return on plan assets represents the Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for cun-ent and planned asset classes in the plans' investment portfolios. Assumed projected rates ofreturn for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.

109

The following tables provide the weighted-average assumptions used to detennine benefit obligations and net costs. Evergy Weighted-average assumptions used to determine Kansas Evergy Kansas Evergy the benefit obligation at December 31, 2019 Evergy Central Metro Evergy Central Metro Discount rate 3.62% 3.61% 3.64% 3.56% 3;54% 3:58% Rate increase 3.74% 3.78% 3.71% 3.75% n/a 3.75% Pension Benefits Post-Retirement Benefits Evergy Evergy Weighted-average assumptions used to determine Kansas Evergy Kansas Evergy the benefit obligation at December 31, 2018 Evergy Central Metro Evergy Central Metro Discount rate 4.35.% 4.35% 4.36% 4-.33% .. Rate of compensation increase 3.76% 4.03% 3.64% 3.50% n/a 3.50% Pension Benefits Post-Retirement Benefits Evergy Evergy Weighted-average assumptions used to determine Kansas Kansas net costs for the ended December 31, 2019 Central Central Expected long-term return on plan assets 6.61% 6.75% 6.47% 4.44% 6.00% 2.94% Rate Pension Benefits Post-Retirement Benefits Evergy Evergy Weighted-average assumptions used to determine Kansas Evergy Kansas Evergy net costs for the year ended December 31, 2018 Evergy Central Metro Evergy Central Metro Discount rate 3.73% *3.73% 3.72% 3.6'7%. .* ~"'"3:64%

,*<,,:;f Expected long-term return on plan assets 6.52% 6.67% 6.46% 6.00% 6.00% 2.80%

Evergy expects to contribute $128.1 million to the pension plans in 2020 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $45.5 million is expected to be paid by Evergy Kansas Central and $82.6 million is expected to be paid by Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Also in 2020, Evergy expects to contribute $3.8 million to the post-retirement benefit plans, of which $0.8 million is expected to be paid by Evergy Kansas Central and $3.0 million is expected to be paid by Evergy Metro. 110

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2029. Evergy Evergy Kansas Evergy Kansas Evergy Central Metro Evergy Central (millions) 2020 $ 180.6 $ 95.l $ 84.3 $ 16.7 $ 9.6 7.1 2021 182.4 95.6 85.5 16.7 9.5 7.2 2022 181:l 93.3 86;5 16.4 9.3 7.1 2023 181.8 91.5 89.0 16.3 9.2 7.1 2024 185.0 91.9 91.7 15.9 7.1 2025-2029 918.2 428.3 482.3 75.2 40.3 34.9 Evergy Kansas Central and Evergy Metro each maintain separate trusts for both their qualified pension and post-retirement benefits. These plans are managed in accordance with prndent investor guidelines contained in the ERISA requirements. The primary objective of the Evergy Kansas Central pension plan is to provide a source ofretirement income for its paiticipants and beneficiaries, and the primary financial objective of the plan is to improve its funded status. The primary objective of the Evergy Kansas Central post-retirement benefit plan is growth in assets and the preservation of principal, while minimizing interim volatility, to meet anticipated claims of plan participants. The primary objective of the Evergy Metro pension plans is to meet or exceed the target rate ofreturn for the plan within a reasonable and prudent level of risk. The primary objective of the Evergy Metro post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return. The investment strategies of both the Evergy Kansas Central and Evergy Metro pension and post-retirement plans support the above objectives of the plans. The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Evergy Kansas Central and Evergy Metro pension and other post-retirement plan assets. Pension Benefits Post-Retirement Benefits Evergy Evergy Kansas Evergy Kansas Evergy Central Metro Central Metro Domestic equities 29% 31% 33% 3°/o International equities 20% 21% 22% -% Bonds 36% 35% 45% 85% Mortgage & asset backed securities -% -% -% 4% Real estate investments 4% 6% -% -% Other investments 11% 7% -% 8% Fair Value Measurements Evergy classifies recuning and non-recuning fair value measurements based on the fair value hierarchy as discussed in Note 14. The following are descriptions of the valuation methods of the p1imary fair value measurements disclosed below. Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the net asset value (NAY) per fund 111

share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy. International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy. Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the NAV per fund share, derived from the quoted prices in active markets of the underlying securities, are not classified within the fair value hierarchy. Corporate bonds - consists of individually held, primarily domestic, corporate bonds that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2. US. Treasury and agency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasmy securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2. Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2. Real estate investments - consists of traded real estate investment trusts valued at the closing price reported on the major market on which the trusts are traded and are categorized as Level 1 and institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy. Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as Level 1. Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy. Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy. Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as Level 1. 112

The fair values of the Evergy Companies' pension plan assets at December 31, 2019 and 2018, by asset category are in the following tables. Fair Value Measurements Assets December 31 measured Description 2019 Level 1 Level 2 Level 3 atNAV (millions) Evergy Kansas Central Pension Plans International equities 162.4 101.5 60.9 Alternative investment funds 78.5 78.5 Evergy Metro Pension Plans International equities 178.7 117.7 61.0 Corporate bonds 123.9 123.9 113

Fair Value Measurements Using Assets December 31 measured at Description 2018 Level 1 Level 2 Level 3 NAV (millions) Evergy Kansas Central Pension Plans Domestic equities: $ 215.0 $ 144.7 $ $ $ 70.3 International equities 138.7 91.8 46.9 Bond funds 296.4 255.4 41.0 Real estate investments 44.8 44.8 Combination debt/equity/otherfu~d

• 30.1 :30.1 Alternative investment funds 73.6 Short-term investments Total $ 804.6 $ 522.0 $ $ $ 282.6 Evergy Metro Pension Plans Domestic equities $ 198.6 $ $ $ 39.5 International equities 150.9 104.0 46.9 Bond funds Corporate bonds 123.6 123.6 US. Treasury 17.:S Mortgage and asset backed securities 5.5 Real estate Combination debt/equity/other fund 13.5 13.5 Alternative investmenffunds 31.6 Cash and cash equivalents 49.8 49.8 Other 0.3 0.3 Total $ 798.8 $ 450.2 $ 146.9 $ $ 201.7 114

The fair values of the Evergy Companies' post-retirement plan assets at December 31, 2019 and 2018, by asset category are in the following tables. Assets December 31 measured Description 2019 Level 1 Level 2 Level 3 atNAV (millions) Evergy Kansas Central Post-Retirement Benefit Plans Domestic equities International equities Bond funds Cash and cash equivalents Total Evergy Metro Post~RetiremenfBenefitPlans Domestic equities $ 3.2 $ 3.2 $ $ $ International equities Bond funds 77.5 0.1 77.4 Corporate bon.ds U.S. Treasury and agency bonds 11.5 4.1 7.4 Mortgage and.s,ssethatked secutities Cash and cash equivalents Other Total Fair Value Measurements Using Assets December 31 measured Description 2018 Level 1 Level 2 Level 3 at NAV (millions) Evergy Kansas Central Post-Retirement Benefit Plans

  .D.omestic equities                                                                                       56.4 International equities                                14.0                                                14.0 Bond funds                                                                                               38.4 Short-term investments                                 0.7                                                 0.7 Cash and cash equivalents Total                                        $ 109.7      $    0.2       $          $            $ 109.5 Evergy Metro Post-Retirement Benefit Plans
  .Domestic eq1:u:t1es.

International equities 0.9 0.9 Bond funds .74.8 Corporate bonds U.S. Treasury andag~ncy bonds Mortgage and asset backed securities 2.5 2.5 Cash* and cash equivalents Other 0.3 0.3 115

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following tables. Evergy Kansas Evergy Assumed annual health care cost growth rates as of December 31, 2019 Evergy Central Metro Health care cost trend rate u0c,uutvU 6.3% 6.3% 6.3% Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5% Year that rate reaches ultimate trend 2027 2027 Evergy Kansas Evergy Assumed annual health care cost growth rates as of December 31, 2018 Evergy Central Metro Health care cost trend rate assumed for next 6.5% Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5% 4.5% 4.5% Year that 2027 2027 The effects of a one-percentage point change in the assumed health care cost trend rates, holding all other assumptions constant, at December 31, 2019, are detailed in the following table. Kansas Evergy Evergy Central<al Metro Effect of 1% increase (millions) total.service and interest component $ Effect on post-retirement benefit obligation 0.5 (0.1) 0.6 of Effect on total service and interest component $ $ $ Effect on post-retirement benefit obligation (0.4) 0.1 (0.5) (aJ Evergy Kansas Central includes only the effect of health care cost trend rates for Wolf Creek because the Evergy Kansas Central post-retirement benefit plan includes a fixed monthly stipend for health care and therefore is not affected by changes in health care costs. Employee Savings Plans Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table. Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. 2019 2018 2017 (millions) Evergy $ 17.6 $ 16.3 9.7 Evergy Kansas Central 9.6 9.9 9.7 Evergy Metro 8.0 8.3

11. EQUITY COMPENSATION Upon the consummation of the merger, Evergy assumed both Evergy Kansas Central's Long-Term Incentive and Share Award plan (LTISA) and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Term Incentive Plan. All outstanding share-based payment awards under Evergy Kansas Central's LTISA vested at the closing of the merger transaction and were converted into a right to receive Evergy common stock with the exception of certain RSUs and deferred director share units issued prior to the closing of the merger to certain directors, officers and employees of Evergy Kansas Central. The vesting of these shares resulted 116

in the recognition of $14.6 million of compensation expense in Evergy's and Evergy Kansas Central's consolidated statements of income and comprehensive income for 2018. All of Great Plains Energy's outstanding performance shares, restricted stock, RSUs and director defen-ed share units under Great Plains Energy's Amended Long-Term Incentive Plan were converted into equivalent Evergy performance shares, restricted stock, RSUs and director deferred share units at Great Plains Energy's merger exchange ratio of 0.5981. The estimated fair value of these converted awards that was allocated to the purchase price was $12.5 million, after-tax. See Note 2 for more information regarding the merger. The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit. Evergy (millions) Equity compensation expense 15.5 $ 30;7 $ 8.9 Income tax benefit 3.0 1.4 3.5 Evergy Kansas Central Equity compensation expense 6.7 24.8 8.9 Income tax benefit 3.5 Evergy Metro<a) Equity compensation expense 5.7 6.5 4.2 Income tax benefit 0.3 0.1 1.6 Evergy Metro amounts are only included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. Restricted Share Units Evergy has utilized RSUs for new grants of stock-based compensation awards subsequent to the merger. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon expiration of the award term or RSUs with only service requirements that vest solely upon the passage of time. RSUs with Performance Measures The payment of RS Us with performance measures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Board. The numbers ofRSUs with performances measures ultimately paid can vary from the numbers ofRSUs with performance measures initially granted depending on Evergy's performance over stated performance periods. Compensation expense for RSUs with performance measures is calculated by recognizing the p01iion of the fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number ofRSUs with performance measures ultimately paid. The fair value of RSUs with performance measures is estimated using the market value of Evergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the perfonnance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2019, inputs for expected volatility, dividend yield and risk-free rates were 18%, 3.45% and 2.6%, respectively. 117

RSU activity for awards with performance measures for 2019 is summarized in the following table. Restricted Grant Date Share Units Fair Value* Beginning balance January 1, 2019 $ Granted 202,107 37.87 Forfeited (4,857) 37.87 Ending balance December 31, 2019 197,250 37.87

• weighted-average At December 31, 2019, the remaining weighted-average contractual term related to RSU awards with performance measures was 2.2 years. The weighted-average grant-date fair value ofRSUs granted with performance measures was $3 7 .87 in 2019. At December 31, 2019, there was $5 .4 million of unrecognized compensation expense related to unvested RSUs with performance measures. No RSUs with performance measures vested in 2019.

RSUs with Only Service Requirements Evergy measures the fair value of RSU s with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award, including for those RSUs that have a graded vesting schedule. Nonforfeitable dividend equivalents, or the rights to receive cash equal to the value of dividends paid on Evergy's common stock, are paid on certain of these RSUs during the vesting period. Nonforfeitable dividend equivalents are recorded directly to retained earnings. RSU activity for awards with only service requirements for 2019 is summarized in the following table. Nonvested Restricted Grant Date Share Units Fair Value* Beginning balance January 1,2019 217,256 $ 54.07 Granted 70,395 54.47 Vested (48,767) 54.20 54.23 54;16

• weighted-average At December 31, 2019, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.1 years. The weighted-average grant-date fair value ofRSUs granted with only service requirements was $54.47, $52.16 and $53.25 in 2019, 2018 and 2017, respectively. At December 31, 2019, there was $5.2 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RS Us with only service requirements that vested was $2.6 million, $16.0 million and $6.1 million in 2019, 2018 and 2017, respectively.

Performance Shares Evergy's performance shares represent legacy Great Plains Energy perfo1mance shares that converted into equivalent Evergy performance shares at the closing of the merger transaction. The vesting of perfonnance shares is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of the Evergy Board. The number of performance shares ultimately vested can vary from the number of shares initially granted depending on Evergy's performance over stated performance periods. Compensation expense for performance shares is calculated by recognizing the portion of the grant date fair value for each repo1ting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of performance shares ultimately paid. 118

The fair value of performance share awards was estimated using the market value ofEvergy Kansas Central's and Great Plains Energy's common stock at the valuation date upon conversion at the merger and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected volatilities, dividend yield and risk-free rates. Expected volatility was based on daily stock price change based on historical common stock information during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate was based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield was based on the most recent dividends paid by Evergy Kansas Central, as Evergy's stock price assumed Evergy Kansas Central's stock price on a forward basis, and the grant date stock price on the valuation date. Performance share activity for 2019 is summarized in the following table. Performance adjustment represents the difference between the number of shares of common stock related to performance shares ultimately issued from the number of performance shares initially granted which can vary depending on Evergy's performance over a stated period of time. Performance Grant Date Shares Fair Value* Beginning balance January 1, 2019 34~,1Qq $ 63.80 Vested (69,317) 46.11

.Forfeited                                                                                                    69.65 Performance adjustment                                                                    (44,442)            42.97 Ending balance December 31; 2019                                                                            73.06

• weighted-average At December 31, 2019, the remaining weighted-average contractual term was 0.5 years. There were no shares granted in 2019. The weighted-average grant-date fair value of shares granted was $63. 79 in 2018. At December 31, 2019, there was $2.2 million of total unrecognized compensation expense, net of forfeiture rates, related to performance shares granted under the Evergy, Inc. Long-Term Incentive Plan, which will be recognized over the remaining weighted-average contractual term. The total fair value of performance shares vested was $3 .2 million in 2019. There were no vested performance shares in 2018.

Restricted Stock Evergy's restricted stock represents legacy Great Plains Energy restricted stock that converted into equivalent Evergy restricted stock at the closing of the merger transaction. Restricted stock cannot be sold or otherwise transferred by the recipient prior to vesting and has a value equal to the fair market value of the shares on the issue date. Restricted stock shares vest over a stated period of time with accruing reinvested dividends subject to the same restrictions. Compensation expense, calculated by multiplying shares by the grant-date fair value related to restricted stock, is recognized on a sh*aight-line basis over the requisite service period of the award. Restricted stock activity for 2019 is summarized in the following table. Nonvested Grant Date Restricted Stock Fair Value* Beginning lJal1,mce January 1, 2019, {lJ6,{i75. $ 54.03 Vested (38,404) 54.35 Forfeited * (2)61J 53.88 Ending balance December 31, 2019 76,110 53.87

• weighted-average At December 31, 2019, the remaining weighted-average contractual term was 0.7 years. There were no shares granted in 2019. The weighted-average grant-date fair value of shares granted was $54.05 in 2018. At December 31, 2019, there was $0.8 million of total unrecognized compensation expense, net of forfeiture rates, related to nonvested restricted stock granted under the Evergy, Inc. Long-Term Incentive Plan, which will be 119

recognized over the remaining weighted-average contractual term. The total fair value of shares vested was $2.1 million and $0.3 million for 2019 and 2018, respectively. LINES Evergy's $2.5 billion master credit facility expires in 2023. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each bon-ower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. A default by any borrower under the facility or one of their significant subsidiaries on other indebtedness totaling more than $100.0 million constitutes a default by that borrower under the facility. Under the terms of this facility, each ofEvergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00 at all times. As of December 31, 2019, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant. The following table summarizes the committed credit facilities ( excluding receivable sale facilities discussed in Note 4) available to the Evergy Companies as ofDecember 31, 2019 and 2018. Weighted Average Interest Rate on Credit Commercial Letters of Cash Available Short-Term Facility Paper Credit Borrowings Borrowings Borrowings December 31, 2019 (millions) Evergy Kansas Central 1,000.0 249.2 14.2 736.6 2.07% Evergy Missouri West 450.0 93.4 2.1 354.5 2.02%

Eyer&y Evergy, Inc. $ 450.0 n/a $ 1.0 $ -$ 449.0 -%

In March 2019, Evergy entered into a $1.0 billion, 6-month term loan credit agreement with a group of banks to provide sho1t-term financing for its common stock repurchase program. The agreement allowed for two term loans during the 6-month term of the agreement, in an aggregate principal amount not to exceed the credit limit of the agreement. At closing, Evergy borrowed $500.0 million under the agreement, allowing for one additional term loan borrowing in a principal amount up to $500.0 million, which was subsequently utilized in June 2019. In September 2019, Evergy repaid its $1.0 billion of borrowings under the term loan credit agreement with proceeds from its issuance of $1.6 billion of senior notes in September 2019. 120

13. LONG-TERM DEBT The Evergy Companies' long-term debt is detailed in the following tables.

Evergy Year Due Metro Senior Notes Medium Term Notes 121

Kansas Evergy December 2018 Issuing Entity Year Due Evergy Central Metro Mortgage Bonds (millions) 5.10% Series Kansas Central, Inc. 2020 $ 250.0 $ 250.0 3.25% Series Evergy Kansas Central, Inc. 2025 250.0 250.0 Series Evergy Kansas Central, Inc. 2026 350.0 350.0 3.10% Series Evergy Kansas Central, Inc. 2027 300.0 300.0 4.125% Series Evergy Kansas Central, Inc. 550.0 550.0 4.10% Series Evergy Kansas Central, Inc. 2043 430.0 430.0 4.625% Series Evergy Kansas Central, Inc. 2043 250.0 250.0 4.25% Series Evergy Kansas Central, Inc. 2045 300.0 300.0 6.70% Series Evergy Kansas South, Inc. 2019 300.0 300;0 6.15% Series Evergy Kansas South, Inc. 2023 50.0 50.0 6.53% Series Kansas South, Inc. 2037 175.0 175.0 6.64% Series Evergy Kansas South, Inc. 2038 100.0 100.0 4.30% South, '250.0 2.95% EIRR bonds Evergy Metro, Inc. 2023 79.5 79.5 7.15% Series Evergy Metro, .Inc. 2019 400.0 400.0 9.44% Series Evergy Missouri West, Inc. 2019-2021 3.4 Pollution Control Bonds 2.46% Series(b) Evergy Kansas Central, Inc. 2032 45.0 45.0 2.46% Kansas Central, Inc: 2032 30.5 30.5 2.46% Series(bJ Evergy Kansas South, Inc. 2027 21.9 21.9 2.50%  ! 50,0 2.46% Series<b) Evergy Kansas South, Inc. 2032 14.5 2.46% South, 10.0 1.865% Series 2007 A and 2007B(bl Evergy Metro, Inc. 2035 146.5 146.5 Inc. Senior Notes 3.15% 300.0 300.0 3.65% Series Evergy Metro, Inc. 2025 350.0 350.0 6.05% Series (5.78% rateyl"l Evergy Metro, Inc. 2035 250.0 250.0 5.30% Series Evergy Metro, Inc. 2041 400.0 400.0 4.20% Series Evergy Metro, Inc. 2047 30().Q 300.0 4.20% Series Evergy Metro, Inc. 2048 300.0 300.0 8.27% Series Evergy Missouri West, Inc. 80.9 3.49% Series A Evergy Missouri West, Inc. 2025 36.0 4.06% Series B Missot!fi West, Inc. 2033 60.d. 4.74% Series C Evergy Missouri West, Inc. 2043 150.0 4.85% Series Inc.co 2021 350.0 5.292% Series Evergy, Inc.<n 2022 287.5 Medium Tenn Notes 7.33% Series Evergy Missouri West, Inc. 2023 3.0 7.17% Series Missouri West, Inc. 7.0 Fair value adjustment<"l Current maturities Unamortized debt discount and debt issuance costs Rate after amortizing gains/losses recognized in OCI on settlements of interest rate hedging instruments. (bl Variable rate. (cJ Evergy's current maturities total as of December 31, 2018, includes $4.3 million of fair value adjustments recorded in connection with purchase accounting for the merger transaction. (dJ At December 31, 2019 and 2018, does not include $50.0 million and $21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by Evergy Metro. (c) Represents the fair value adjustments recorded at Evergy consolidated related to the long-term debt of Great Plains Energy, Evergy Metro and Evergy Missouri West in connection with purchase accounting for the merger transaction. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments. (f) Originally issued by Great Plains Energy but assumed by Evergy, Inc. as part of the merger transaction. (gJ Effectively secured pursuant to the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as supplemented (Evergy Metro Mmtgage Indenture) through the issuance of collateral mortgage bonds issued to the trustee for the unsecured senior notes in March 2019. 122

The following table summarizes Evergy's and Evergy Kansas Central's long-term debt ofVIEs. 2019 2018 Mortgage Bonds The Evergy Kansas Central and Evergy Kansas South mortgages each contain provisions restricting the amount of first mortgage bonds (FMBs) that could be issued by each entity. Evergy Kansas Central and Evergy Kansas South must be in compliance with such restrictions prior to the issuance of additional first mortgage bonds or other secured indebtedness. The amount ofEvergy Kansas Central FMBs authorized by its Mortgage and Deed of Trust, dated July 1, 1939, as supplemented, is subject to certain limitations as described below. The amount ofEvergy Kansas South FMBs authorized by the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as supplemented and amended, is limited to a maximum of $3.5 billion, unless amended further. FMBs are secured by utility assets. Amounts of additional FMBs that may be issued are subject to property, earnings and certain restrictive provisions, except in connection with certain refundings, of each mortgage. As of December 31, 2019, approximately $305.4 million and $2,828.6 million principal amounts of additional Evergy Kansas Central FMBs or Evergy Kansas South FMBs, respectively, could be issued under the most restrictive provisions of their mortgages. Evergy Metro has issued mortgage bonds under the Evergy Metro Mortgage Indenture, which creates a mortgage lien on substantially all ofEvergy Metro's utility plant. Additional Evergy Metro bonds may be issued on the basis of 7 5% of property additions or retired bonds. As of December 31, 2019, approximately $4,923.3 million principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage. Evergy Missouri West has issued mortgage bonds under the General Mortgage Indenture and Deed of Trust dated April 1, 1946, as supplemented, which creates a mortgage lien on a portion ofEvergy Missouri West's utility plant. In March 2019, Evergy Metro issued collateral mortgage bonds secured by the Evergy Metro Mortgage Indenture to serve as collateral for Evergy Metro's obligations under the following outstanding unsecured senior notes:

    *    $300.0 million of3.15%   Series, maturing in 2023;
    *    $350.0 million of3.65%   Series, maturing in 2025;
    *    $250.0 million of 6.05%  Series, maturing in 2035;
    *    $400.0 million of 5.30%  Series, maturing in 2041;
    *    $300.0 million of 4.20%  Series, maturing in 2047; and
    *    $300.0 million of 4.20%  Series, maturing in 2048.

The collateral mortgage bonds were issued to the applicable trustee for the unsecured senior notes, are only payable if Evergy Metro defaults on the underlying unsecured senior notes and do not increase the amount of outstanding debt for Evergy Metro. As a result of the above transactions, Evergy Metro's outstanding senior notes have effectively become secured by the mortgage lien of the Evergy Metro Mortgage Indenture and rank equally and ratably with all ofEvergy Metro's mortgage bonds, regardless of series, from time to time issued and outstanding under the Evergy Metro Mortgage Indenture. Also in March 2019, Evergy Metro issued, at a discount, $400.0 million of 4.125% Mortgage Bonds, maturing in 2049. Evergy Metro also repaid its $400.0 million of7.15% Mortgage Bonds at maturity in April 2019. 123

In June 2019, Evergy Kansas South repaid its $300.0 million of 6.70% FMBs at maturity. In August 2019, Evergy Kansas Central issued, at a diseount, $300.0 million of3.25% FMBs, maturing in 2049. Senior Notes Under the terms of the note purchase agreement for Evergy Missouri West's Series A, B and C Senior Notes, Evergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreement, not greater than 0.65 to 1.00. In addition, Evergy Missouri West's priority debt, as defined in the agreement, cannot exceed 15% of consolidated tangible net worth, as defined in the agreement. At December 31, 2019, Evergy Missouri West was in compliance with these covenants. In March 2019, Evergy Missouri West issued $100.0 million of 3.74% Senior Notes, maturing in 2022, under a note purchase agreement. In September 2019, Evergy issued, at a discount, $800.0 million of2.45% Senior Notes, maturing in 2024 and $800.0 million of 2.90% Senior Notes, maturing in 2029. Scheduled Maturities Evergy's, Evergy Kansas Central's and Evergy Metro's long-term debt maturities and the long-term debt maturities ofVIEs for the next five years are detailed in the following table. 2020 2021 2022 2023 2024 (millions) Evergy Kansas Central(al VIEs 32.3 18.8 Excludes long-term debt maturities ofVIEs.

14. FAIR VALUE MEASUREMENTS Values of Financial Instruments GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily detenninable fair value at NAV, which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.

Level 1 Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges. Level 2 Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets or other financial instruments priced with models using highly observable inputs. Level 3 - Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. NAV - Investments that do not have a readily detenninable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment 124

funds that not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments. The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the sho1i-term nature of these instruments. Interest Rate Derivatives The Evergy Companies are exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. From time to time, risk management activities may include entering into interest rate swap agreements to protect against unfavorable interest rate changes relating to forecasted debt transactions. These interest rate swap agreements can be designated as cash flow hedges, in which case gains and losses on the interest rate swaps are deferred in other comprehensive income to be recognized as an adjustment to interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify all cash inflows and outflows for interest rate swap agreements accounted for as cash flow hedges of forecasted debt transactions as financing activities on their consolidated statements of cash flows. In September 2019, Evergy issued $800.0 million of2.90% Senior Notes maturing in 2029 and paid $69.8 million to settle an interest rate swap agreement with a notional amount of $500.0 million that was designated as a cash flow hedge of interest payments on the debt issuance. Evergy entered into the interest rate swap agreement in December 2018. The $69.8 million pre-tax loss was recorded in other comprehensive loss on Evergy's consolidated statements of comprehensive income and is being reclassified from accumulated other comprehensive loss to interest expense over the ten-year term of the debt. For 2019, $2.0 million and ($0.5) million were reclassified from accumulated other comprehensive loss to interest expense and income tax expense, respectively, on Evergy's consolidated statements of comprehensive income. As of December 31, 2019, Evergy expects to amortize $5.2 million to earnings from accumulated other comprehensive loss over the next twelve months. Fair Value of Long-Term Debt The Evergy Companies measure the fair value oflong-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-te1m debt and long-term debt of variable interest entities is summarized in the following table. December 31 2019 2018 Book Value Fair Value Book Value Fair Value Long-term debt<*) (millions) EvergyCb) Evergy Kansas Central 3,686.1 4,078.8 3,689.8 3,771.3 .Evergy Metro *.. . 2,530:1 Long-term debt of variable interest entities<*) Evergy 81.4 81.3 Evergy Kansas Central 51.1 51.5 81.4 81.3 (a) Includes current maturities. (bl Book value as of December 31, 2019 and 2018, includes $125.5 million and $144.8 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the Great Plains Energy and Evergy Kansas Central merger, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument. 125

Fair Value Measurements The following tables include the Evergy Companies' balances of :financial assets and liabilities measured at fair value on a recurring basis. Description December 31, 2019 Level 1 Level 2 Level3 NAY Evergy Kansas Central (millions) Assets Nuclear decommissioning trust<a) funds $ 86.1 $ $ 7.5 International equity funds 52.0 52.0 Core bond fund 39.3 39.3 High-yield bond fund 22.3 22.3 markets bond fund 19.4 19.4 Combination debtJequity/other fund 16.4 16.4 Alternative investments fund Real estate securities fund Cash Total nuclear decommissioning trust trust Core bond fund 25.3 25.3 Combination debt/equity/other fund <5.3 Cash equivalents Total rabbi trust Assets Equity securities $ Debt U.S. Treasury 50.3 50.3 State and local obligations 2.2 2.2 Corporate bonds Foreign governments 0.1 0.1 Cash equivalents Other 0.3 0.3 Total nuclear decommissioning trust 300.7 264.5 36.2 Self-insured health plan trust<bl Equity securities 0.5 0.5 Debt securities 6.7 1.4 5.3 Cash and cash equivalents 2.T 2.7 Total self-insured health plan tlust 9.9 4.6 5.3 Total L 310.6 $ 269.1 $ 41.5 $ $ Other Evergy Rabbi trusts income fund Cash and cash equivalents Nuclear decommissioning trust<al $ 573.2 $ 493.0 $ 36.2 $ $ 44.0 Rabbi trusts 0;.6 Self-insured health plan trust(bl 9.9 4.6 5.3 126

Descrietion December 31, 2018 Level 1 Level 2 Level3 NAV Evergy Kansas Central (millions) Assets Nuclear decommissioning trust<"> Domestic funds $ 70.6 $ 63.9 $ $ s International equity funds 36.2 36.2 Core bond fund 37.5 High-yield bond fund 18.9 18.9 bond fund i5c.4 Combination debt/equity/other fund 12.9 12.9 Alternative investments fund 24.1 Real estate securities fund 11.8 11.8 Cash equivalents 0.1 0 ..1 Total nuclear decommissioning trnst 227.5 184.9 Rabbi trust Core bond fund 24.8 24.8 Combination debt/equity/other fund 5.6 Cash equivalents 0.2 0.2 Total rabbi trust 30,6 0.2 . 30:4 Total $ 258.1 $ 185.1 $ $ 73.0 Evergy Metro Assets Nuclear decommissioning trusf*l Equity securities $ 166.6 $ 166.6 $ $ $ Debt securities U.S. Treasury 42.1 42.1 U.S.Agency 0.4 oA State and local obligations 2.1 2.1 Corporate bonds 30.9 Foreign governments 0.1 0.1 Cash equivalents 1.7 L7 Other 0.7 0.7 Total nuclear decommissioning trnst 244.6 211.1 33.5 Self-insured health plan trustlbl Equity securities 0.5 0;5 Debt securities 3.9 0.3 3.6 Cash and cash equivalents 8.0 8.0 Total self-insured health plan trust 12.4 8.8 Total $ 257.0 s 219.9 $ $ $ Other Evergy Assets Rabbi trusts Fixed income fund $ 13.2 $ $ $ 13.2 Total rabbi trusts $ 13.2 $ $ $ 13.2 Liabilities Interest rate swaps(c) $ 5.4 $ $ 5.4 $ $ Total $ 5.4 $ $ 5.4 $ $ - Evergy Assets Nuclear decommissioning trust<"1 $ 472.1 $ 396.0 $ 33.5 $ $ 42.6 Rabbi trust 43.8 0.2 .43.6 Self-insured health plan truslbl 12.4 8.8 3.6 Total $ 528.3 $ 405.0. $ 37.1 $ $ 86,2 Liabilities Interest rate swaps(c) $ 5.4 $ $ 5.4 $ $ - Total $ 5.4 $ $ 5.4 $ $ (a) Fair value is based on quoted market prices of the investments held by the trust and/or valuation models. (bl Fair value is based on quoted market prices of the investments held by the trust. Debt securities classified as Level 1 are comprised of U.S. Treasury securities. Debt securities classified as Level 2 are comprised of corporate bonds, U.S. Agency, state and local obligations, and other asset-backed securities. (cJ The fair value of interest rate swaps are determined by calculating the net present value of expected payments and receipts under the interest rate swaps using observable market inputs including interest rates and London Interbank Offered Rate (LIBOR) swap rates. 127

Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions. The following table provides additional infonnation on these Evergy and Evergy Kansas Central investments. December 31, 2019 December 31, 2018 December 31, 2019 Fair Unfunded Fair Unfunded Redemption Length of Value Commitments Value Commitments Frequency Settlement Evergy Kansas Central (millions) Nuclear decommissioning trust: equity funds $ 7.5 3.3 $ 6.7 $ 4"*.:l (a) Alternative investments fund<bl 23.9 24.1 Qua1terly 65 days 11.8 Total $ 44.0 $ 3.3 $ 42.6 $ 4.3 Core bond fund $ 25.3 $ $ 24.8 $ (c) (c) C<imbination debt/~quity!other 6.3 5.6 Total $ 31.6 $ $ 30.4 $ Rabbi trusts: 4.3 This investment is in five long-term private equity funds that do not permit early withdrawal. Investments in these funds cannot be distributed until the underlying investments have been liquidated, which may take years from the date of initial liquidation. Three funds have begun to make distributions. The initial investment in the fourth and fifth fund occurred in 2016 and 2018, respectively. The fourth fund's term is 15 years, subject to the general partner's right to extend the term for up to three additional one-year periods. The fifth fund's tenn will be 15 years after the initial closing date, subject to additional extensions approved by a fund advisory committee to provide for an orderly liquidation of fund investments and dissolution of the fund. (b) There is a holdback on final redemptions. (c) This investment can be redeemed immediately and is not subject to any restrictions on redemptions. 128

The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning ttusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the consolidated statements of income and comprehensive income. The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning ttusts and rabbi ttusts. Eve:rgy Kansas Central (millions) Eve:rgy Metro<a) Eve:rgy Nuclear decommissioning trust - debt securities 5.1 (0.5) Evergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter.

15. COMMITMENTS AND CONTINGENCIES Environmental Matters Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws and regulations can also change, restrict or otherwise impact the Evergy Companies' operations or financial results in many ways, including the handling or disposal of waste material and the planning for future consttuction activities. The failure to comply with these laws and regulations could result in the assessment of administrative, civil and criminal penalties and/or the imposition of remedial requirements. The Evergy Companies believe that all of their operations are in substantial compliance with current federal, state and local environmental standards.

There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' operations and consolidated financial results. Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below. Cross-State Air Pollution Update Rule In September 2016, the Environmental Protection Agency (EPA) finalized the Cross-State Air Pollution (CSAPR) Update Rule. The final rule addresses interstate transport of nitrogen oxides emissions in 22 states including Kansas, Missouri and Oklahoma during the ozone season and the impact from the formation of ozone on downwind states with respect to the 2008 ozone National Ambient Air Quality Standards (NAAQS). In December 2018, the EPA finalized a determination, known as the CSAPR Close-Out Rule, demonstrating the CSAPR Update Rule fully addressed certain upwind states' 2008 ozone NAAQS interstate transport obligations. Various states and others have challenged both the CSAPR Update Rule and the CSAPR Close-Out Rule in the U.S. Court of Appeals for the 129

D.C. Circuit (D.C. Circuit). In the fourth quarter of 2019, the D.C. Circuit granted these petitions and remanded a portion of the CSAPR Update Rule back to the EPA and vacated the CSAPR Close-Out Rule in its entirety. Due to the uncertainty in what the future CSAPR Update Rule will include, the Evergy Companies cannot determine the impact on their operations or consolidated financial results, but it could be material. Greenhouse Gases Burning coal and other fossil fuels releases carbon dioxide (CO2) and other gases referred to as greenhouse gases (GHG). Various regulations under the federal Clean Air Act Amendments of 1990 (CAA) limit CO2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal ofreducing GHG emissions. In August 2018, the EPA published in the Federal Register proposed regulations, which contained ( 1) emission guidelines for GHG emissions from existing electric utility generating units (EGUs), (2) revisions to emission guideline implementing regulations and (3) revisions to the new source review (NSR) program. These emission guidelines are better known as the Affordable Clean Energy (ACE) Rule. In July 2019, the EPA published in the Federal Register the final ACE Rule with one significant change from the proposal. The NSR program revisions were not included in the final version and are expected to be addressed in a future rulemaking. The ACE Rule establishes emission guidelines for states to use in the development of plans to reduce GHG emissions from existing coal-fired EGUs. This rule defines the "best system of emission reduction" (BSER) for GHG emissions from existing coal-fired EGUs as on-site, heat-rate efficiency improvements. The final rule also provides states with a list of candidate technologies that can be used to establish standards of performance and incorporate these performance standards into state plans. In order for the states to be able to effectively implement the emission guidelines contained in the ACE Rule, the EPA is finalizing new regulations under Section 111(d) of the CAA to help clarify this process. The ACE Rule became effective in September 2019. In conjunction with the finalization of the ACE Rule, the EPA repealed its previously adopted Clean Power Plan (CPP). Also in September 2019, the D.C. Circuit granted motions to dismiss challenges to the CPP and challenges to EPA's denial of reconsideration of the CPP. . Due to uncertainty regarding what future state implementation plans will require for compliance with the ACE Rule as well as legal challenges that have been filed, the Evergy Companies cannot determine the impact on their operations or consolidated financial results, but the cost to comply with the ACE Rule, should it be upheld and implemented in its current or a substantially similar form, could be material. Water The Evergy Companies discharge some of the water used in generation and other operations containing substances deemed to be pollutants. A November 2015 EPA rule establishes effluent limitations guidelines (ELG) and standards for wastewater discharges, including limits on the amount of toxic metals and other pollutants that can be discharged. Implementation timelines for this 2015 rule vary from 2018 to 2023. On November 22, 2019, the EPA published a proposed modification to the ELG rule. The proposed rule modifies numeric limits for flue gas desulfurization (FGD) wastewater and adds a 10% volumetric purge limit for bottom ash transport water. The time line for final FGD wastewater compliance is also delayed by two years to December 31, 2025. The Evergy Companies are in the process of reviewing the proposed rule and the costs to comply with these changes could be material. In April 2019, the U.S. Court of Appeals for the 5th Circuit (5th Circuit) issued a ruling that vacates and remands portions of the original ELG rule. Due to this ruling, future ELG modifications for the best available technology economically achievable for legacy waste water and leachate are likely. In October 2014, the EPA's final standards for cooling water intake structures at power plants to protect aquatic life took effect. The standards, based on Section 316(b) of the federal Clean Water Act (CWA), require subject facilities to choose among seven best available technology options to reduce fish impingement. In addition, some facilities must conduct studies to assist pennitting authorities to determine whether and what site-specific controls, if any, would be required to reduce entrainment of aquatic organisms. The Evergy Companies' current analysis indicates this rule will not have a significant impact on their coal plants that employ cooling towers or cooling lakes that can 130

be classified as closed cycle cooling and do not expect the impact from this rule to be material. Plants without closed cycle cooling are under evaluation for compliance with these standards and may require additional controls that could be material. Evergy Metro holds a permit from the Missouri Department of Natural Resources (MDNR) covering water discharge from its Hawthorn Station. The pe1mit authorizes Evergy Metro to, among other things, withdraw water from the Missouri River for cooling purposes and return the heated water to the Missouri River. Evergy Metro has applied for a renewal of this permit and the EPA has submitted an interim objection letter regarding the allowable amount of heat that can be contained in the returned water. Until this matter is resolved, Evergy Metro continues to operate under its current permit. Evergy and Evergy Metro cannot predict the outcome of this matter; however, while less significant outcomes are possible, this matter may require a reduction in generation, installation of cooling towers or other technology to cool the water, or both, any of which could have a material impact on Evergy's and Evergy Metro's operations and consolidated financial results. Regulation of Coal Combustion Residuals In the course of operating their coal generation plants, the Evergy Companies produce CCRs, including fly ash, gypsum and bottom ash. The EPA published a rule to regulate CCRs in April 2015, that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. In March 2019, the D.C. Circuit issued a ruling to grant the EPA's request to remand the Phase I, Part I CCR rule. This was in response to a prior court ruling requiring the EPA to address un-lined surface impoundment closure requirements. On December 2, 2019, the EPA published a proposed rule called the Part A CCR Rule. This proposal reclassifies clay-lined surface impoundments from "lined" to "unlined" and establishes a deadline of August 31, 2020 to initiate closure. The prior rule included a deadline of October 31, 2020 for unlined impoundments to initiate closure. In February 2020, the EPA released a pre-publication version of a proposed rule called the Part B CCR Rule. This proposal includes a process to allow unlined impoundments to continue to operate if a demonstration is made to prove that they are not adversely impacting groundwater, human health or the environment. The proposal also includes clarification regarding ash used in the closure of landfills and surface impoundments. The Evergy Companies are in the process of reviewing these proposed rules and the costs to comply with these changes could be material. The Evergy Companies have recorded AROs for their cmTent estimates for the closure of ash disposal ponds, but the revision of these AROs may be required in the future due to changes in existing CCR regulations, the results of groundwater monitoring of CCR units or changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ponds. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material. Storage of Spent Nuclear Fuel Under the Nuclear Waste Policy Act of 1982, the Department of Energy (DOE) is responsible for the permanent disposal of spent nuclear fuel. In 2010, the DOE filed a motion with the Nuclear Regulatory Commission (NRC) to withdraw its then pending application to construct a national repository for the disposal of spent nuclear fuel and high-level radioactive waste at Yucca Mountain, Nevada. The NRC has not yet issued a final decision on the matter. Wolf Creek has elected to build a d1y cask storage facility to expand its existing on-site spent nuclear fuel storage, which is expected to provide additional capacity prior to 2022. The Evergy Companies expect that the majority of the costs to construct the dry cask storage facility that would not have otherwise been incuned had the DOE begun accepting spent nuclear fuel will be reimbursed by the DOE. The Evergy Companies cannot predict when, or if, an off-site storage site or alternative disposal site will be available to receive Wolf Creek's spent nuclear fuel and will continue to monitor this activity. Nuclear Insurance Nuclear liability, property and accidental outage insurance is maintained for Wolf Creek. These policies contain certain industry standard terms, conditions and exclusions, including, but not limited to, ordinary wear and tear and war. An industry aggregate limit of $3.2 billion for nuclear events ($1.8 billion of non-nuclear events) plus any 131

reinsurance, indemnity or any other source recoverable by Nuclear Electric Insurance Limited (NEIL), provider of property and accidental outage insurance, exists for acts of ten-orism affecting Wolf Creek or any other NEIL insured plant within 12 months from the date of the first act. In addition, participation is required in industry-wide retrospect assessment programs as discussed below. Nuclear Liability Insurance Pursuant to the Price-Anderson Act, liability insurance includes coverage against public nuclear liability claims resulting from nuclear incidents to the required limit of public liability, which is approximately $13. 9 billion. This limit ofliability consists of the maximum available commercial insurance of $0.4 billion and the remaining $13.5 billion is provided through mandatory participation in an industry-wide retrospective assessment program. Under this retrospective assessment program, the owners of Wolf Creek are jointly and severally subject to an assessment ofup to $137.6 million (Evergy's share is $129.2 million and each ofEvergy Kansas Central's and Evergy Metro's is $64.6 million), payable at no more than $20.5 million (Evergy's share is $19.2 million and each ofEvergy Kansas Central's and Evergy Metro's is $9.6 million) per incident per year per reactor for any commercial U.S. nuclear reactor qualifying incident. Both the total and yearly assessment is subject to an inflationary adjustment based on the Consumer Price Index and applicable premium taxes. In addition, the U.S. Congress could impose additional revenue-raising measures to pay claims. Nuclear Property and Accidental Outage Insurance The owners of Wolf Creek carry decontamination liability, nuclear property damage and premature nuclear decommissioning liability insurance for Wolf Creek totaling approximately $2.8 billion. Insurance coverage for non-nuclear property damage accidents total approximately $2.3 billion. In the event of an extraordinary nuclear accident, insurance proceeds must first be used for reactor stabilization and site decontamination in accordance with a plan mandated by the NRC. The Evergy Companies' share of any remaining proceeds can be used to pay for property damage or, if certain requirements are met, including decommissioning the plant, toward a shortfall in the nuclear decommissioning trust fund. The owners also carry additional insurance with NEIL to help cover costs of replacement power and other extra expenses incurred during a prolonged outage resulting from accidental property damage at Wolf Creek. If significant losses were incurred at any of the nuclear plants insured under the NEIL policies, the owners of Wolf Creek may be subject to retrospective assessments under the current policies of approximately $33.2 million (Evergy's share is $31.2 million and each of Evergy Kansas Central's and Evergy Metro's is $15.6 million). Nuclear Insurance Considerations Although the Evergy Companies maintain various insurance policies to provide coverage for potential losses and liabilities resulting from an accident or an extended outage, the insurance coverage may not be adequate to cover the costs that could result from a catastrophic accident or extended outage at Wolf Creek. Any substantial losses not covered by insurance, to the extent not recoverable in prices, would have a material effect on the Evergy Companies' consolidated financial results. Contractual Commitments - Fuel, Power and Other The Evergy Companies' contractual commitments at December 31, 2019, excluding pensions, long-term debt and leases, are detailed in the following tables. See Notes 10, 13 and 21 for information regarding pension, long-term debt and lease commitments, respectively. Evergy 2020 2021 2022 2023 2024 After 2024 Total Purchase commitments (millions) Fuel $ 137.0 83.2 $ $ 17.1 94.l 903.0 Power 47.3 47.4 47.6 47.8 41.7 325.2 557.0 Other 42.3 30.0 25.1 1I7.7 Total contractual commitments $ 681.9 $ 226.7 $ 160.8 $ 157.6 $ 78.2 $ 537.0 $ l 132

Purchase C(11mitments (millions) Fuel $ 33.0 $ $ 45.7 11.5 $ 59.0 $. Evergy MeM 2020 2021 2022 2023 2024 After 2024 Total Purchase c,11mitments (millions) Fuel $ 1802 $ 36.0 $ 39.0 5.6 35.1 $ Power 34.8 34.9 35.1 35.3 29.2 225.4 394.7 Other 58.4 29.0 24.2 21.6 L8,7 112.9 264.8 Total contruual commitments $ 273.4 $ 156.4 $ 95.3 $ 95.9 $ 53.5 $ 373.4 $ 1,047.9 Fuel co1n11itments consist of commitments for nuclear fuel, coal and coal transportation. Power commitments consist of certain commitments for renewable energy under power purchase agreements. Other represents individualtommitments entered into in the ordinary course of business.

16. GUAJ\ANTEES In the ordinary course of business, Evergy and certain of its subsidiaries enter into various agreements providing financial o,performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, grrarantees and letters of credit. These agreements are entered into primarily to support or enhance the creditwortniness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiary's intended business purposes. In connection with the closing of the merger, E,ergy assumed the guarantees previously provided to Evergy Missouri West by Great Plains Energy. The majority of these agreements guarantee Evergy's own future performance, so a liability for the fair value of the obligation is not recorded.

At December 31, 2019, Evergy has provided $110.2 million of credit support for Evergy Missouri West as follows:

• E,ergy direct guarantees to Evergy Missouri West counterparties totaling $17.0 million, which expire in 2020, and
• Evergy's guarantee of Evergy Missouri West long-term debt totaling $93.2 million, which includes debt with maturity dates ranging from 2020 to 2023.

Evergy has also guaranteed Evergy Missouri West's commercial paper program. At December 31, 2019, Evergy Missouri West had $93.4 million of commercial paper outstanding. None of the guaranteed obligations are subject to default or prepayment if Evergy Missouri West's credit ratings were downgraded.

17. RELATED PARTY TRANSACTIONS AND RELATIONSHIPS In the nonnal course of business, Evergy Kansas Central, Evergy Metro and Evergy Missouri West engage in related party transactions with one another. A summary of these transactions and the amounts associated with them is provided below. Transactions between Evergy Kansas Central and either Evergy Metro or Evergy Missouri West prior to June 4, 2018, the date of the merger, are not reflected below.

Jointly-Owned Plants and Shared Services Evergy Metro employees manage Evergy Missouri West's business and operate its facilities at cost, including Evergy Missouri West's 18% ownership interest in Evergy Metro's Iatan Nos. 1 and 2. The operating expenses and capital costs billed from Evergy Metro to Evergy Missouri West were $172.8 million for 2019, $183 .2 million for 2018 and$196.3 million for 2017. 133

Evergy Kansas Central employees manage JEC and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. The operating expenses and capital costs billed from Evergy Kansas Central to Evergy Missouri West for JEC and other various business activities were $24.9 million for 2019 and $12.3 million for 2018. Evergy Metro employees manage La Cygne Station and operate its facilities at cost, including Evergy Kansas Central's 50% interest in La Cygne Station. Evergy Metro and Evergy Kansas Central employees also provide one another with shared service support, including costs related to human resources, information technology, accounting and legal services. The operating expenses and capital costs billed from Evergy Metro to Evergy Kansas Central were $154.9 million for 2019 and $82.9 million for 2018. The operating and capital costs billed from Evergy Kansas Central to Evergy Metro were $40.6 million for 2019 and $17.5 million for 2018. Money Pool Evergy Metro and Evergy Missouri West are also authorized to participate in the Evergy, Inc. money pool, an internal financing a1Tangement in which funds may be lent on a short-term basis to Evergy Metro and Evergy Missouri West from Evergy, Inc. and between Evergy Metro and Evergy Missouri West. At December 31, 2019 and 2018, Evergy Metro had no outstanding receivables or payables under the money pool. Related Party Net Receivables and Payables The following table summarizes Evergy Kansas Central's and Evergy Metro's related party net receivables and payables. 2019 2018 Evergy Kansas Central (millions) Net payable to Evergy Metro (13.5) Net receivable from (payable to) Eyergy (L4} Net receivable from Evergy Missouri West $ 78.7 $ 72.6 Net receivable frornEvergyKansas Central

• 14.9 13.5 Net receivable from (payable to) Evergy (4.3) 15.7 Tax Allocation Agreement Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. As of December 31, 2019 and 2018, Evergy Kansas Central had income taxes receivable from Evergy of$37.9 million and $42.7 million, respectively. As of December 31, 2019 and 2018, Evergy Metro had income taxes payable to Evergy of $14.1 million and $2.0 million, respectively.

Leases Evergy Metro leases certain transmission equipment from Evergy Kansas Central. This lease was entered into prior to the merger in an arms-length transaction and is accounted for as an operating lease. As of December 31, 2019, Evergy Metro had a right-of-use asset of $29.5 million recorded within other long-term assets, $0.6 million of lease liability recorded in other cuITent liabilities and $28.9 million of lease liability recorded in other long-term liabilities on its consolidated balance sheet related to this lease. The assets and liabilities related to this lease between Evergy Kansas Central and Evergy Metro are eliminated at consolidated Evergy. 134

18. SHAREHOLDERS' EQUITY Evergy's authorized capital stock consists of 600 million shares of common stock, without par value, and 12 million shares of Preference Stock, without par value.

Evergy Registration Statements In November 2018, Evergy filed an automatic shelf registration statement providing for the sale of unlimited amounts of securities with the SEC, which expires in November 2021. Evergy has registered shares of its common stock with the SEC for its Dividend Reinvestment and Direct Stock Purchase Plan. Shares issued under the plan may be either newly issued shares or shares purchased on the open market. Evergy has registered shares of its common stock with the SEC for the Evergy, Inc. 401(k) Savings Plan. Shares issued under the plans may be either newly issued shares or shares purchased on the open market. Common Stock Repurchase Program In July 2018, the Evergy Board authorized the repurchase ofup to 60 million shares ofEvergy's common stock. Evergy has utilized various methods to effectuate the share repurchase program since its authorization, including the repurchase of shares through accelerated share repurchase (ASR) agreements and open market transactions. Evergy retires repurchased common stock shares in the period the shares are repurchased. For 2019, Evergy had total repurchases of common stock of $1,628.7 million and had repurchased 28.8 million shares under the repurchase program. Since the start of the repurchase program in August 2018, Evergy has made total repurchases of common stock of $2,671.0 million and has repurchased 45.2 million shares under the repurchase program. Evergy does not anticipate making additional repurchases of common stock under its share repurchase program while the Strategic Review & Operations Committee of the Evergy Board conducts its review of ways to enhance long-term shareholder value, which is expected to conclude in the first half of 2020. The following table summarizes the ASRs completed as part of Evergy's common stock repurchase program. Shares Date ASR Entered Final Settlement Date Amount Delivered (millions) August2018 October/November 2018 November 2018 February 2019 475.0 8.3 Mai:ch 2019 Jlll1e2019 June 2019 September 2019 500.0 8.1 September 201~ November/December 2019 5.00,0 . it Under the ASR agreements entered into with various financial institutions, Evergy was delivered a number of shares of its common stock based on the amount of the ASR agreement and the average daily volume-weighted average price of its common stock during the term of the ASR agreement, less a negotiated discount. Evergy reflects ASRs as a repurchase of common stock in the period the shares are delivered for purposes of calculating earnings per share and as fo1ward contracts indexed to its own common stock. Evergy's ASRs have met all of the applicable criteria for equity classification and therefore are not accounted for as derivative instruments. Dividend Restrictions Evergy depends on its subsidiaries to pay dividends on its common stock. The Evergy Companies have certain restrictions stemming from statutory requirements, corporate organizational documents, covenants and other conditions that could affect dividend levels or the ability to pay dividends. The KCC order authorizing the merger transaction requires Evergy to maintain consolidated common equity of at least 35% of total consolidated capitalization. 135

Under the Federal Power Act, Evergy Kansas Central, Evergy Metro and Evergy Missouri West generally can pay dividends only out of retained earnings. Certain conditions in the MPSC and KCC orders authorizing the merger transaction also require Evergy Kansas Central and Evergy Metro to maintain consolidated common equity of at least 40% of total capitalization. Other conditions in the MPSC and KCC merger orders require Evergy Kansas Central, Evergy Metro and Evergy Missouri West to maintain credit ratings of at least investment grade. If Evergy Kansas Central's, Evergy Metro's or Evergy Missouri West's credit ratings are downgraded below the investment grade level as a result of their affiliation with Evergy or any of Evergy's affiliates, the impacted utility shall not pay a dividend to Evergy without KCC or MPSC approval or until the impacted utility's investment grade credit rating has been restored. The master credit facility ofEvergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West and the note purchase agreements for certain Evergy Missouri West senior notes contain covenants requiring the respective company to maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 at all times. As of December 31, 2019, all ofEvergy's and Evergy Kansas Central's retained earnings and net income were free ofrestrictions and Evergy Metro had a retained earnings restriction of $152.0 million. Evergy's subsidiaries had restricted net assets of approximately $5. 0 billion as of December 31, 2019. These restrictions are not expected to affect the Evergy Companies' ability to pay dividends at the current level for the foreseeable future.

19. VARIABLE INTEREST ENTITIES In determining the primary beneficiary of a VIE, the Evergy Companies assess the entity's purpose and design, including the nature of the entity's activities and the risks that the entity was designed to create and pass through to its variable interest holders. A reporting enterprise is deemed to be the primary beneficiary of a VIE if it has (a) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE.

The primary beneficiary of a VIE is required to consolidate the VIE. The trust holding an 8% interest in JEC was a VIE until the expiration of a purchase option in July 2017 and then again during 2019 until the 8% interest was purchased by Evergy Kansas Central in August 2019. The trust holding Evergy Kansas Central's 50% interest in La Cygne Unit 2 is a VIE and Evergy Kansas Central remains the primary beneficiary of the trust. All involvement with entities by the Evergy Companies is assessed to determine whether such entities are VIEs and, if so, whether or not the Evergy Companies are the primary beneficiaries of the entities. The Evergy Companies also continuously assess whether they are the primary beneficiary of the VIE with which they are involved. Prospective changes in facts and circumstances may cause identification of the primary beneficiary to be reconsidered. 8% Interest in JEC Under an agreement that expired in August 2019, Evergy Kansas Central leased an 8% interest in JEC from a trust. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 8% interest in JEC and lease it to a third party and did not hold any other assets. Evergy Kansas Central met the requirements to be considered the primary beneficiary of the trust until July 2017, when a contractual option to purchase the 8% interest in the plant covered by the lease expired. Accordingly, Evergy Kansas Central deconsolidated the trust in the third quarter of 2017. Evergy Kansas Central then reconsolidated the trust as a VIE in the first quarter of 2019 following an agreement with the owner to purchase the 8% interest in JEC from the trust in August 2019. Evergy Kansas Central deconsolidated the trust for the final time following the closing of this purchase in August 2019. 50% Interest in La Cygne Unit 2 Under an agreement that expires in September 2029, Evergy Kansas Central entered into a sale-leaseback transaction with a trust under which the trust purchased Evergy Kansas Central's 50% interest in La Cygne Unit 2 and subsequently leased it back to Evergy Kansas Central. The trust was financed with an equity contribution from an owner participant and debt issued by the trust. The trust was created specifically to purchase the 50% interest in 136

(3.3) (3.3) (3.1) Flow through depreciation for plant-related differences (0.1) 1.6 2.3 Non-controlling interest (0.8) (0.6) (0.9) Amortization of federal investment tax credits (0.7) (0.8) (0.6) Federal or state tax rate change (15.3) 2.5 Stock compensation (0.1) (0.8) (0.9) Other 0.2 (0.8) COLI policies Flow through depreciation for plant-related differences Other 41:6% 139

Deferred Taxes The tax effects of major temporary differences resulting in deferred income tax assets (liabilities) in the consolidated balance sheets is in the following table. 2019 2018 Evergy Kansas Evergy Kansas Evergy Evergy Central Metro Evergy Central Metro Deferred tax assets: (millions) Income taxes refundable to customers, net 466.3 234.3 176.2 478.1 233. l 186.9 Net operating loss carryforward 163.4 23.1 61.9 383.3 60.7 119.2 Alternative minimum tax can-yforward 37.9 13.4 73.4 26.7 Other 183.2 99.1 55.1 193.5 101.7 46.7 Deferred tax liabilities: Deferred employee benefit costs (173.3) (93.4) (79.5) (199.9) (89.6) (86.1) Net deferred income tax liabilities $ (1,744.4) $ (817.7) $ (642.8) $ (1,599.2) $ (815.4) $ (631.8) Tax Credit Carryforwards At December 31, 2019 and 2018, Evergy had $379.0 million and $333.8 million, respectively, of federal general business income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $168.8 million and $134.0 million, respectively, of federal general business income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Metro had $203 .2 million and $192.8 million, respectively, of federal general business income tax credit carryforwards. The carryforwards for Evergy, Evergy Kansas Central and Evergy Metro relate primarily to wind production tax credits and advanced coal investment tax credits and expire in the years 2020 to 2039. Approximately $0.4 million ofEvergy's credits are related to Low Income Housing credits that were acquired in Great Plains Energy's acquisition of Evergy Missouri West. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $0.3 million of the federal income tax benefit. 140

Evergy Kansas Central 2019 2018 2017 Current income taxes (millions) Federal $ 37.9 $ (0.3) $ 0.1 State 2.6 (1.8) 0.4 Total 40.5 (2.1) 0.5 Deferred income taxes Federal (8.9) 43.5 122.8 State 18.4 (42.9) 30.7 Total .9.5 0.6 153.5 Investment tax credit Deferral 5.2 Amortization (3.1) (2.8) (2.8) Total 2.1 (2.8) (2.8) Income tax expense (benefit) $ 52.1 $ (4.3) $ 151.2 Evergy Metro!al 2019 2018 2017 Current income taxes (millions) Federal $ 43.9 $ 29.8 $ 37.4 State 22.4 8.9 8.3 Total 66.3 38.7 45.7 Deferred income taxes Federal (24.5) State (5.0) 53.0 8.8 Total (29.5) 49.6 83.5 Investment tax credit Amortization (l.l) (LO) (1.0) Total (1.1) (1.0) (1.0) Income tax expense * $ 35;7 $ 87.3 $ 128.2 (alEvergy Metro amounts are included in consolidated Evergy from June 4, 2018, the date of the closing of the merger, and thereafter. Effective Income Tax Rates Effective income tax rates reflected in the financial statements and the reasons for their differences from the statutory federal rates are detailed in the following tables. Evergy 2019 2018 2017 Federal .statutory income tax 21.0% 21.0% 35.0% COLI policies (1.8) (1.9) (3.1) State income taxes 5.0 4.9 4.1 Flow through depreciation for plant-related differences (4.5) 0.8 2.3 Federal tax credits (4.9) (6.4) (6.9) Non-controlling interest (0.4) (0.4) (0.9) AFUDC equity (0.1) (0.1) (0.2) Amortization of federal investment tax credits (0.5) (0.6) (0.6) C:,ha:nges in uncertain tax positions; net (0.2) 0.1 Federal or state tax rate change (8.7) 2.5 Vaiuation allowance (1.0) 0.4 0.3 Stock compensation 0.1 (0.4) (0.9) Officer compensationlimitation 0.1 1.2 0.2 Other (0.4) (0.2) (0.8) Effective income tax rate 12.4% 9.7% 31.0% 138

La Cygne Unit 2 and lease it back to Evergy Kansas Central and does not hold any other assets. Evergy Kansas Central meets the requirements to be considered the primary beneficiary of the trust. In determining the primary beneficiary of the trust, Evergy Kansas Central concluded that the activities of the trust that most significantly impact its economic performance and that Evergy Kansas Central has the power to direct include ( 1) the operation and maintenance of the 50% interest in La Cygne Unit 2 and (2) Evergy Kansas Central's ability to exercise a purchase option at the end of the agreement at the lesser of fair value or a fixed amount. Evergy Kansas Central has the potential to receive benefits from the trust that could potentially be significant if the fair value of the 50% interest in La Cygne Unit 2 at the end of the agreement is greater than the fixed amount. The following table summarizes the assets and liabilities related to the VIE described above that are recorded on Evergy's and Evergy Kansas Central's consolidated balance sheets. December 31 2019 2018 Assets: (millions) Property, plant and equipment of v.ariable interest entities; net $ 162.0 Liabilities: Current maturities oflong-term debt of variable interest entities $ 32;3 Accrued interest<*) 0.3 0.5 Included in accrued interest on Evergy's and Evergy Kansas Central's consolidated balance sheets. All of the liabilities noted in the table above relate to the purchase of the property, plant and equipment of the VIE. The assets of the VIE can be used only to settle obligations of the VIE and the VIE's debt holders have no recourse to the general credit ofEvergy and Evergy Kansas Central. Evergy and Evergy Kansas Central have not provided financial or other support to the VIE and are not required to provide such support. Evergy and Evergy Kansas Central did not record any gain or loss upon the initial consolidation of the VIE.

20. TAXES Components of income tax expense are detailed in the following tables.

Evergy 2019 2018 2017 Current income taxes (millions) State 15.0 2.2 0.4 State 5:2 Amortization (4.4) (3.6) (2.8) Total 0.8 (3:6) (2.8) Income tax expense $ 97.0 $ 59.0 $ 151.2 137

The year of origin of Evergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal tax credit carryforwards as of December 31, 2019 are detailed in the following table. Amount of Benefit Evergy Kansas Year of Origin Evergy Central Evergy Metro (millions) 2001 2002 2003 0.3 0.2 2005 0.3 0.2 2007 0.6 0.6 2008 2009 47.7 0.2 47.4 2.010 2011 13.3 13.2 2013 24.3 11.3 12.9 2015 24.7 10.9 13.2 2017 43.9 35.1 8.2 2018 2019 38.3 30.6 7.6 At December 31, 2019 and 2018, Evergy had $169.9 million and $174.3 million, respectively, of tax benefits related to state income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $168.5 million and $173 .1 million, respectively, of tax benefit related to state income tax credit carryforwards. At December 31, 2019 and 2018, Evergy Metro had $1.2 million of tax benefits related to state income tax credit carryforwards. The state income tax credits relate primarily to the Kansas high performance incentive program tax credits and expire in the years 2024 to 2034. Net Operating Loss Carryforwards At December 31, 2019 and 2018, Evergy had $132.4 million and $324.2 million, respectively, of tax benefits related to federal net operating loss (NOL) carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had

$12.3 million and $40.1 million, respectively, of tax benefits related to federal NOL carryforwards. At December 31, 2019 and 2018, Evergy Metro had $56.2 million and $107.5 million, respectively, of tax benefits related to federal NOL carryforwards. Approximately $51.1 million at December 31, 2019 are tax benefits related to NOLs that were acquired in the Evergy Missouri West acquisition. Due to federal limitations on the utilization of income tax attributes acquired in the Evergy Missouri West acquisition, Evergy expects a portion of these credits to expire unutilized and has provided a valuation allowance against $7 .1 million of the federal income tax benefit. The federal NOL carryforwards expire in years 2023 to 2037.

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The year of origin ofEvergy's, Evergy Kansas Central's and Evergy Metro's related tax benefit amounts for federal NOL canyforwards as of December 31, 2019 are detailed in the following table. Amount of Benefit Evergy Kansas Year of Central Metro (millions) 2005 19.J $ $ 2006 32.0 2014 2.8 0.2 0.9 2015 58.8 55.3 4.6 2017 15. l In addition, Evergy also had deferred tax benefits of $31.0 million and $59 .1 million related to state NO Ls as of December 31, 2019 and 2018, respectively. Evergy Kansas Central had deferred tax benefits of$10.8 million and $20.6 million related to state NOLs as of December 31, 2019 and 2018, respectively. Evergy Metro had deferred tax benefits of $5.7 million and $11.7 million related to state NO Ls as of December 31, 2019 and 2018, respectively. The state NOL canyforwards expire in years 2020 to 2038. Evergy does not expect to utilize $10.1 million ofNOLs before the expiration date of the carryforwards ofNOLs in certain states. Therefore, a valuation allowance has been provided against $10.1 million of state tax benefits. Alternative Minimum Tax Carryforwards At December 31, 2019 and 2018, Evergy had $37.9 million and $73.4 million, respectively, of federal alternative minimum tax (AMT) credit carryforwards. At December 31, 2019 and 2018, Evergy Kansas Central had $13.4 million and $26. 7 million, respectively, of federal AMT carryforwards. These credits do not expire and can be used to reduce taxes paid in the future or become refundable starting in 2018. Valuation Allowances Evergy is required to assess the ultimate realization of deferred tax assets using a "more likely than not" assessment threshold. This assessment takes into consideration tax planning strategies within Evergy's control. As a result of this assessment, Evergy has established a partial valuation allowance for federal and state tax NOL carryforwards and tax credit canyforwards. During 2019, $9.8 million of tax benefit was recorded in continuing operations primarily related to AMT credits and the expiration of certain state NOL carryforwards. Federal Tax Reform In December 2017, the U.S. Congress passed and President Donald Trump signed Public Law No. 115-97, commonly referred to as the TCJA. The TCJA represents the first major reform in U.S. income tax law since 1986. Most notably, the TCJA reduces the current top corporate income tax rate from 35% to 21 % beginning in 2018, repeals the corporate AMT, makes existing AMT tax credit carryforwards refundable, and changes the deductibility and taxability of certain items, among other things. Prior to the change in tax rates that has been reflected in their 2018 rate cases, Evergy Kansas Central, Evergy Metro and Evergy Missouri West recovered the cost of income taxes in rates from their customers based on the 35% federal corporate income tax rate. In January 2018, the KCC issued an order requiring certain regulated public utilities, including Evergy Kansas Central and Evergy Metro, to begin recording a regulato1y liability for the difference between the new federal corporate tax rate and amounts currently collected in rates. In the second quarter of 2018, Evergy Kansas Central and Evergy Metro entered into settlement agreements with KCC staff and other intervenors in which they further agreed to begin deferring any impacts of the TCJA on their excess accumulated deferred income taxes to a regulatory liability. The KCC approved these settlement agreements in June 2018. Evergy Metro and Evergy 142

Missouri West had also recorded regulatory liabilities in 2018 due to the probability that they would also be required to make similar refunds to their Missouri customers. The final regulatory treatment of these regulatory liabilities for the refund of tax reform benefits was detennined in each ofEvergy Kansas Central's, Evergy Metro's and Evergy Missouri West's rate cases with the KCC and MPSC. See Note 5 for more information and the amounts of the regulatory liabilities recorded by the Evergy Companies. Missouri Tax Reform On June 1, 2018, the Missouri governor signed Senate Bill (S.B.) 884 into law. Most notably, S.B. 884 reduces the corporate income tax rate from 6.25% to 4.0% beginning in 2020, provides for the mandatory use of the single sales factor formula and eliminates intercompany transactions between corporations that file a consolidated Missouri income tax return. As a result of the change in the Missouri corporate income tax rate, Evergy Metro revalued and restated its deferred income tax assets and liabilities as of June 1, 2018. Evergy Metro decreased its net deferred income tax liabilities by $46.6 million, primarily consisting of a $28.8 million adjustment for the revaluation and restatemenfof defened income tax assets and liabilities included in Missouri jurisdictional rate base and a $9.9 million tax gross-up adjustment for ratemaking purposes. The decrease to Evergy Metro's net deferred income tax liabilities included in Missouri jurisdictional rate base were offset by a corresponding increase in regulatory liabilities. The net regulatory liabilities will be amortized to customers over a period to be determined in a future rate case. Evergy Metro recognized $15.5 million of income tax benefit primarily related to the difference between Evergy Metro's revaluation of its deferred income tax assets and liabilities for financial reporting purposes and the amount of the revaluation pertaining to Evergy Metro's Missouri jurisdictional rate base.

21. LEASES The Evergy Companies lease office buildings, computer equipment, vehicles, rail cars, generating plant and other property and equipment, including rail cars to serve jointly-owned generating units where Evergy Kansas Central or Evergy Metro is the managing partner and is reimbursed by other joint-owners for the other owners' proportionate share of the costs. Under GAAP, a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Evergy Companies assess a contract as being or containing a lease if the contract identifies property, plant and equipment, provides the lessee the right to obtain substantially all of the economic benefits from use of the property, plant and equipment and provides the lessee the right to direct the use of the property, plant and equipment.

The Evergy Companies have entered into several agreements to purchase energy through renewable purchase power agreements that are accounted for as leases that commenced prior to the application of Topic 842. Due to the intermittent nature of renewable generation, these leases have significant variable lease payments not included in the initial and subsequent measurement of the lease liability. Variable lease payments are expensed as incurred. In addition, certain other contracts contain payment for activity that transfers a separate good or service such as utilities or common area maintenance. The Evergy Companies have elected a practical expedient permitted by GAAP to not separate such components of the lease from other lease components for all leases. The Evergy, Evergy Kansas Central and Evergy Metro leases have remaining terms ranging from 1 to 19 years, 1 to 19 years and 1 to 26 years, respectively. Leases that have original lease terms of twelve months or less are not recognized on the Evergy Companies' balance sheets. Some leases have options to renew the lease or terminate early at the election of the Evergy Companies. Judgment is applied at lease commencement to determine the reasonably certain lease term based on then-current assumptions about use of the leased asset, market conditions and terms in the contract. The judgment applied to determine the lease term can significantly impact the measurement of the lease liability and right-of-use asset and lease classification. The Evergy Companies typically discount lease payments over the term of the lease using their incremental borrowing rates at lease commencement to measure its initial and subsequent lease liability. For leases that existed 143

at the initial application of Topic 842, the Evergy Companies used the incremental borrowing rates that con-esponded to the remaining lease term as of January 1, 2019. Leases may be classified as either operating leases or finance leases. The lease classification is based on assumptions of the lease term and discount rate, as discussed above, and the fair market value and economic life of the leased asset. Operating leases recognize a consistent expense each period over the lease term, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization of the right-of-use asset. Finance leases are treated as operating leases for rate-making purposes and as such, the Evergy Companies defer to a regulat01y asset or liability any material differences between expense recognition and the timing of payments in order to match what is being recovered in customer rates. The Evergy Companies' lease expense is detailed in the following table. Kansas Evergy Year Ended December 31, 2019 Central Metro Finance lease costs (millions) Amortization ofright-of-use assets $ $ 5.0 $ 0.1 Interest on lease liabilities 2.9 2.7 0.1 Operating lease costs 23.8 13,2 Short-term lease costs 4.0 1.2 2.6 Variable costs* fot rene.vable purchase power Total lease costs $ 348.9 $ 152.9 $ 141.2 Supplemental cash flow information related to the Evergy Companies' leases is detailed in the following table. Kansas Evergy Year Ended December 31, 2019 Evergy Central Metro Cash paid for amounts included in the measurement of lease liabilities: (millions) Operating cash flows from operating leases $ 21.7 13.7 $ 9.9 Operating cash flows from finance leases 2.8 2.6 0.1 Financing cash flows from finance leases 5.0 4.8 0.1 Right-of-use assets obtained in exchange for new operating lease liabilities 10.4 6.1 2.4 for new 8.3 144

Finance Leases Right-of-use assets for finance leases are included in property, plant and equipment on the Evergy Companies' balance sheets. Lease liabilities for finance leases are included in other current and other long-term liabilities. Payments and other supplemental information for finance leases as of December 31, 2019, are detailed in the following table. Kansas Evergy Evergy Central Metro (millions) 2021 7.4 7.0 0.2 2023 5.8 5.4 0.2 After 2024 46.2 44.6 0.9 Amounts representing imputed interest (26.1) (25.0) Less: current portion (4.9) (4.7) and Weighted-average discount rate 5.6% 5.5% 7.6% 145

Operating Leases Right-of-use assets for operating leases are included in other long-term assets on the Evergy Companies' balance sheets. Lease liabilities for operating leases are included in other cun-ent and other long-term liabilities. Lease payments and other supplemental information for operating leases as of December 31, 2019, are detailed in the following table. Kansas Evergy Evergy Central Metro (millions) 2020 $ 20.5 $ 11.6 $ 10.7 2021 17.0 8.6 10.l 2022 14.1 6.4 9.3 2023 J 1.0 3.8 8.8 2024 9.2 2.3 8.5 After 2024 44.7 1.5 82.8 Total operating lease payments 116.5 34.2 130.2 Amounts representing imputed interest (18.5) (2.3) (35.4) Present value 98.0 31.9 Less: current portion (15.6) (9.1) (7.0) Total long-term obligations 82.4 .$ 22.8 $ 87.8 Weighted-average remaining lease tedn (years) 8:8 3.8 15.8 Weighted-average discount rate 3.8% 3.4% 4.2%

22. QUARTERLY OPERATING RESULTS (UNAUDITED)

Quarter 1st 2nd 3rd 4th (millions, except per share amounts) revenue $ 1,221.7 $ 1,577.6 $ 1,13 Operating income 209.6 271.7 538.7 165.8 Net income 103.4 144.6 370.9 66.7 Net income attributable to Evergy, Inc. 99.5 139.7 366.8 63.9 Basic and common share 0.39 0.57 1.56 0.28 2018 Operating revenue $ 600.2 $ 893.4 $ 1,582.5 $ 1,199.8 Operating income 123.5 126.9 533.1 150.1 Net income 62~9 104.4 357.6 21.l Net income attributable to Evergy, Inc. 60.5 101.8 355.0 18.5 Basic and diluted earnings per common share 0.42 0.56 1.32 0.07 146

Quarter Evergy Kansas Central 1st 2nd 3rd 4th (millions) revenue $ 596:8 $ $ 749.0 Operating income 124.3 127.6 242.4 102.2 Net income 683 672 168.2 55.4 Net income attributable to Kansas Central, Inc. 64.4 62.3 164.1 52.6 Operating revenue $ 600.2 $ 650.9 $ 764.8 $ 599.0 Operating income 123.5. 76.1 256.9 94.0 Net income 62.9 77.6 178.0 30.6 income attributable to EvergyKansasCentral,lnc. 60.5 75.0 175.4 28.0 Evergy Metro 1st 2nd 3rd 4th 2019 (millions) Operating revenue $ 425.4 $ 437.0 $ $ Operating income 56.9 101.9 215.5 52.2 Net income 16.0. 59.4 151.9 27.9 Operating revenue $ 397.1 $ 559.6 $ 414.2 Operating income 61.0 114.7 189.4 44.7 24.6 120.3 Quarterly data is subject to seasonal fluctuations with peak periods occunfog in the summer months. Evergy's results reflect the results of operations of Evergy Kansas Central for all periods in 2018 and Evergy Metro and Evergy Missouri West beginning with the quarter ended June 30, 2018. See Note 1 for more information. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROLS AND PROCEDURES EVERGY Disclosure Controls and Procedures Evergy carried out an evaluation of its disclosure controls and procedures ( as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of Evergy's management, including the chief executive officer and chief financial officer, and Evergy's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy were effective at a reasonable assurance level. Changes in Internal Control Over Financial Reporting There has been no change in Evergy's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. 147

Management's Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial rep01ting (as defined in Rules l 3a-15(f) and 15d-15(f) under the Exchange Act) for Evergy. Under the supervision and with the participation ofEvergy's chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy's internal control over financial reporting as of December 31, 2019. Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Therefore, even those systems detennined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management has concluded that, as of December 31, 2019, Evergy's internal control over financial reporting is effective based on the criteria set forth in the COSO framework. Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this annual report on Form 10-K, has issued its attestation repo1t on Evergy's internal control over financial reporting, which is included below. 148

REPORT OF REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Evergy, Inc. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Evergy, Inc. and subsidiaries (the "Company") as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2019, of the Company and our report dated March 2, 2020, expressed an unqualified opinion on those financial statements and financial statement schedules. Basis for Opinion The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial repmiing was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company's internal control over financial repo1iing is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. ls/DELOITTE & TOUCHE LLP Kansas City, Missouri March 2, 2020 149

EVERGY KANSAS Disclosure Controls and Procedures Evergy Kansas Central carried out an evaluation of its disclosure controls and procedures (as defined in 13a- l 5( e) and l 5d-l 5( e) under the Exchange Act). This evaluation was conducted under the supervision, and with the paiiicipation, of Evergy Kansas Central's management, including the chief executive officer and chief financial officer, and Evergy Kansas Central's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Kansas Central have concluded as of the end of the period covered by this report that the disclosure controls and procedures of Evergy Kansas Central were effective at a reasonable assurance level. Changes in Internal Control Over Financial Reporting There has been no change in Evergy Kansas Central's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Kansas Central. Under the supervision and with the participation ofEvergy Kansas Central's chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Kansas Central's internal control over financial reporting as of December 31, 2019. Management used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management has concluded that, as of December 31, 2019, Evergy Kansas Central 's internal control over financial reporting is effective based on the criteria set forth in the COSO framework. EVERGY Disclosure and Procedures Evergy Metro carried out an evaluation of its disclosure controls and procedures (as defined in Rules l3a-I5(e) and l 5d-l 5(e) under the Exchange Act). This evaluation was conducted under the supervision, and with the participation, of Evergy Metro's management, including the chief executive officer and chief financial officer, and Evergy Metro's disclosure committee. Based upon this evaluation, the chief executive officer and chief financial officer of Evergy Metro have concluded as of the end of the period covered by this report that the disclosure controls and procedures ofEvergy Metro were effective at a reasonable assurance level. Changes in Internal Control Over Financial Reporting There has been no change in Evergy Metro's internal control over financial reporting (as defined in Rules 13a-15(f) and l 5d- l 5(f) of the Exchange Act) that occurred during the quarterly period ended December 31, 2019, that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. on Internal Control Over Financial Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) for Evergy Metro. Under the supervision and with the pmiicipation of Evergy Metro's chief executive officer and chief financial officer, management evaluated the effectiveness of Evergy Metro's internal control over financial reporting as of December 31, 2019. Management 150

used for this evaluation the framework in Internal Control - Integrated Framework (2013) issued by the COSO of the Treadway Commission. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper ovenide of controls, material misstatements due to enor or fraud may not be prevented or detected on a timely basis. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management has concluded that, as of December 31, 2019, Evergy Metro's internal control over financial reporting is effective based on the criteria set forth in the COSO framework. ITEM 9B. OTHER INFORMATION Investors should note that the Evergy Companies announce material financial information in SEC filings, press releases and public conference calls. In accordance with SEC guidelines, the Evergy Companies also use the Investor Relations tab on their website, www.evergy.com, to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material inforn1ation. The information on Evergy's website is not part of this document. PART III Information required by Items 10-14 of Part III of this Form 10-K with respect to Evergy will be included in an amendment to this Form 10-K, or incorporated by reference to Evergy's definitive proxy statement with respect to its 2020 Annual Meeting of Shareholders (Proxy Statement) on or before April 29, 2020. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Evergy The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference from the following sections of the Proxy Statement: Infonnation regarding the directors of Evergy will be contained in the Proxy Statement section titled "Election of Directors." If applicable, information regarding compliance with Section 16(a) of the Exchange Act will be contained in the Proxy Statement section titled "Security Ownership of Directors, Management and Beneficial Owners."

• Information regarding the Audit Committee of Evergy will be contained in the Proxy Statement section titled "Board Strncture - Committees of the Board."
• Information regarding Evergy's Code of Ethics will be contained in the Proxy Statement section titled "Corporate Governance - Code of Ethics."

Information required by this item regarding Evergy's executive officers is contained in this report in Part I, Item 1 in "Information About Evergy's Executive Officers." Evergy Kansas Central and Evergy Metro Other information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K. 151

ITEM 11. EXECUTIVE COMPENSATION Eve:rgy The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the following sections of the Proxy Statement: "Executive Compensation," "Director Compensation," "Compensation Discussion and Analysis," "Compensation Committee Report" and "Director Independence - Compensation Committee Interlocks and Insider Participation." Evergy Kansas Central and Eve:rgy Metro Other information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K. ITEM 12. SECURITY OWNERSHIP OF CERTAIN AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Evergy The information required by this item regarding security ownership of the directors and executive officers of Evergy will be included in an amendment to this F01m 10-K or will be incorporated by reference to the "Security Ownership of Directors, Management and Beneficial Owners" section of the Proxy Statement. Evergy Kansas Central and Evergy The information required by this item regarding Evergy Kansas Central and Metro has been omitted in reliance on General Instruction (I) to Form 10-K. Equity Compensation Plans Upon the consummation of the merger, Evergy assumed both Evergy Kansas Central's LTISA and Great Plains Energy's Amended Long-Term Incentive Plan, which was renamed the Evergy, Inc. Long-Te1m Incentive Plan. The renamed Evergy Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, director shares, director deferred share units, performance shares and other stock-based awards to directors, officers and other employees of Evergy. The following table provides infonnation, as of December 31, 2019, regarding the number of common shares to be issued upon exercise of outstanding options, warrants and rights, their weighted average exercise price, and the number of shares of common stock remaining available for future issuance. The table excludes shares issued or issuable under any defined contribution savings plans. Number of securities Number of remaining available securities for future issuance to be issued upon Weighted-average under equity exercise of exercise of compensation plans outstanding options, outstanding , "'"'"'"'"""' securities warrants and warrants and reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders 673,320 C2J $ (3) 1,937,404 holders 1 < lThe Evergy Kansas Central, Inc. Long-Term Incentive and Share Award Plan will not be used for future awards. As of December 31, 2019, there were approximately 87,126 RSUs with only service requirements outstanding under the plan, and approximately 360,368 units outstanding that were defetTed pursuant to the Evergy Kansas Central, Inc. non-employee deferred compensation program. DefetTed units will continue to receive defetTed dividend equivalents in the form of additional defetTed units until payouts pursuant to elections begin. 152

cz)Includes 228,256 performance shares at target performance levels, 146,224 RSUs with only service requirements, 197,250 RSUs with perf01mance measures and director deferred share units for 101,590 shares of Evergy common stock outstanding at December 31, 2019. 3 C )The perfonnance shares, RSUs and director deferred share units have no exercise price and therefore are not reflected in the weighted-average exercise price. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Evergy The information required by this item will be included in an amendment to this Form 10-K or will be incorporated by reference to the "Director Independence" and "Related Party Transactions" sections of the Proxy Statement. Evergy Kansas Central and Evergy Metro The information required by this item regarding Evergy Kansas Central and Evergy Metro has been omitted in reliance on General Instruction (I) to Form 10-K. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES Evergy The info1mation required by this item regarding the independent auditors ofEvergy and its subsidiaries will be included in an amendment to this Form I 0-K or will be incorporated by reference to the "Ratification of Appointment ofindependent Auditors" section of the Proxy Statement. Evergy Kansas Central and Evergy Metro The Audit Committee of the Evergy Board functions as the Audit Committee of Evergy Kansas Central and Evergy Metro. The following tables set forth the aggregate fees billed by Deloitte & Touche LLP for audit services rendered in connection with the consolidated financial statements and reports for 2019 and 2018 and for other services rendered during 2019 and 2018 on behalf of Evergy Kansas Central and Evergy Metro, as well as all out-of-pocket costs incmTed in connection with these services: Evergy Kansas Central 2019 2018 Fee Category Audit $ 2,044,100 $ 2,168,000 Audit-Related Fees 24,000 40,000 Tax Fees All Other Fees Evergy Metro 2019 2018 Fee Category Audit $ 1,503,000 $. 1,801,396 Audit-Related Fees 24,000 23,000 Tax Fe.es' 34,765 All Other Fees Audit Fees: Consists offees billed for professional services rendered for the audits of the annual consolidated financial statements ofEvergy Kansas Central and Evergy Metro and reviews of the interim condensed consolidated financial statements included in quarterly reports. Audit fees also include: services provided by Deloitte & Tonche LLP in connection with statutory and regulatory filings or engagements; audit reports on audits of the effectiveness of internal control over financial reporting and other attest services, except those not required by statute or 153

regulation; services related to filings with the SEC, including comfort letters, consents and assistance with and review of documents filed with the SEC; and accounting research in support of the audit. Audit-Related Fees: Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of consolidated financial statements of Evergy Kansas Central and Evergy Metro and are not reported under "Audit Fees." These services include consultation concerning financial accounting and reporting standards. Tax Fees: Consists of fees billed for tax compliance and related support of tax returns and other tax services, including assistance with tax audits, and tax research and planning. All Other Fees: Consists of fees for all other services other than those described above. Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services The Audit Committee has adopted policies and procedures for the pre-approval of all audit services, audit-related services, tax services and other services to be provided by the independent registered public accounting firm for Evergy Kansas Central and Evergy Metro. Under these policies and procedures, the Audit Committee may pre-approve certain types of services, up to the aggregate fee levels it sets. Any proposed service within a pre-approved type of service that would cause the applicable fee level to be exceeded cannot be provided unless the Audit Committee either amends the applicable fee level or specifically approves the proposed service. The Audit Committee, as well, may specifically approve audit, audit-related, tax or other services on a case-by-case basis. Pre-approval is generally provided for up to one year, unless the Audit Committee specifically provides for a different period. Management provides quarterly updates to the Audit Committee regarding actual fees spent with respect to pre-approved services. The Chair of the Audit Committee may pre-approve audit, audit-related, tax and other services provided by the independent registered public accounting firm as required between meetings and report such pre-approval at the next Audit Committee meeting. PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES Financial Statements Evergy, Inc. Page No.

a. Consolidated Statements of Comprehensive Income for the years ended December 31, 62 2019, 2018 and 2017

b. Consolidated Balance Sheets - December 31, 2019 and 2018 63 C. Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 65 and 2017

d. Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 66 2018 and 2017

e. Notes to Consolidated Financial Statements 77

f. Report of Independent Registered Public Accounting Fi1m 57 Evergy Kansas Central, Inc.

g. Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 67 2017 154

h. Consolidated Balance Sheets - December 31, 2019 and 2018 68

i. Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 and 70 2017

j. Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 71 2018 and 2017

k. Notes to Consolidated Financial Statements 77

1. Rep01i of Independent Registered Public Accounting Fim1 60 Evergy Metro, Inc.

m. Consolidated Statements of Comprehensive Income for the years ended December 31, 72 2019, 2018 and 2017

11. Consolidated Balance Sheets - December 31, 2019 and 2018 73

0. Consolidated Statements of Cash Flows for the years ended December 31, 2019, 2018 75 and 2017

p. Consolidated Statements of Changes in Equity for the years ended December 31, 2019, 76 2018 and 2017

q. Notes to Consolidated Financial Statements 77

r. Report of Independent Registered Public Accounting Firm 61 Financial Statement Schedules Evergy, Inc.

a. Schedule I - Parent Company Financial Statements 169

b. Schedule II - Valuation and Qualifying Accounts and Reserves 173 Evergy Kansas Central, Inc.

C. Schedule II - Valuation and Qualifying Accounts and Reserves 173 Evergy Metro, Inc.

d. Schedule II - Valuation and Qualifying Accounts and Reserves 174 155

Exhibits Exhibit Number Description of Document Registrant 2.1 *~ Agreement and Plan of Merger, dated May 29, 2016, by and Evergy among Evergy Kansas Central, Inc. (formerly Westar Energy Evergy Kansas Central Inc.), Great Plains Energy Incorporated and, from and after its accession thereto, Merger Sub (as defined therein) (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on May 31, 2016). 2.2 *~ Amended and Restated Merger Agreement, dated July 9, 2017, by Evergy and among Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.), Great Plains Energy Incorporated, Monarch Energy Holding, Inc., King Energy, Inc. and, solely for the purposes set forth therein, GP Star, Inc. (Exhibit 2.1 to Great Plains Energy's Form 8-K filed on July 10, 2017). 3.1

• Amended and Restated Articles of Incorporation of Evergy, Inc., Evergy effective June 4, 2018 (Exhibit 3.1 to Form 8-K filed on June 4, 2018).

3.2

• Amended and Restated By-laws ofEvergy, Inc., effective Evergy November 27, 2019 (Exhibit 3.1 to Form 8-K filed on December 2, 2019).

3.3

• Amended and Restated Articles of Consolidation of Evergy Metro, Evergy Metro Inc., as amended September 16, 2019 (Exhibit 3.1 to Evergy Metro's Form 10-Q for the quarter ended September 30, 2019).

3.4

• Amended and Restated By-laws of Evergy Metro, Inc., as Evergy Metro amended September 16, 2019 (Exhibit 3.2 to Evergy Metro's Form 10-Q for the quarter ended September 30, 2019).

3.5

• Amended and Restated Articles of Incorporation of Evergy Evergy Kansas Central Kansas Central, Inc., as amended September 16, 2019 (Exhibit 3.3 to Evergy Kansas Central's Form 10-Q for the quarter ended September 30, 2019).

3.6

• Amended and Restated By-laws ofEvergy Kansas Central, Inc., Evergy Kansas Central as amended September 16, 2019 (Exhibit 3 .4 to Evergy Kansas Central's Form 10-Q for the quarter ended September 30, 2019).

4.1

• Indenture, dated June 1, 2004, between Evergy. Inc. (successor to Evergy Great Plains Energy Incorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.4 to Great Plains Energy's Form 8-AJA filed on June 14, 2004).

4.2

• First Supplemental Indenture, dated June 14, 2004, between Evergy Evergy. Inc. (successor to Great Plains Energy Incorporated) and BNY Midwest Trust Company, as trustee (Exhibit 4.5 to Great Plains Energy's Fonn 8-AJA filed on June 14, 2004).

156

4.3

• Second Supplemental Indenture, dated September 25, 2007, Evergy between Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Trust Company, N.A.,

as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on September 26, 2007). 4.4

• Third Supplemental Indenture, dated August 13, 2010, between Evergy Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 13, 2010).

4.5

• Fourth Supplemental Indenture, dated May 19, 2011, between Evergy Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit4.1 to Great Plains Energy's Form 8-K filed on May 19, 2011).

4.6

• Fifth Supplemental Indenture, dated March 9, 2017, between Evergy Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Trust Company, N.A. as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 9, 2017).

4.7

• Sixth Supplemental Indenture, dated June 4, 2018, by and among Evergy Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on June 4, 2018).

4.8

• Seventh Supplemental Indenture dated as of September 9, 2019 Evergy between Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Form 8-K filed on September 9, 2019).

4.9

• Subordinated Indenture, dated May 18, 2009, between Evergy. Evergy Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on May 19, 2009).

4.10

• Supplemental Indenture No. 1, dated May 18, 2009, between Evergy Evergy. Inc. (successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit4.2 to Great Plains Energy's Form 8-K filed on May 19, 2009).

4.11

• Supplemental Indenture No. 2, dated March 22, 2012, between Evergy Evergy. Inc. ( successor to Great Plains Energy Incorporated) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on March 23, 2012).

4.12

• Supplemental Indenture No. 3, dated June 4, 2018, by and among Evergy Great Plains Energy Incorporated, Evergy, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on June 4, 2018).

157

4.13

• Indenture, dated August 24, 2001, between Evergy Missouri West Evergy (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(d) to Registration Statement on Form S-3 (File No. 333-68400) filed by Aquila, Inc. on August 27, 2001).

4.14

• Second Supplemental Indenture, dated July 3, 2002, between Evergy Missouri West, Inc. (formerly Aquila, Inc.) and BankOne Trust Company, N.A., as trustee (Exhibit 4(c) to Form S-4 (File No.

333-100204) filed by Aquila, Inc. on September 30, 2002). 4.15

• General Mortgage and Deed of Trust, dated December 1, 1986, Evergy between Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.12 to Evergy Metro's Form 10-K for the year ended December 31, 2017).

4.16

• Fifth Supplemental Indenture, dated September 1, 1992, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.13 to Evergy Metro's Form 10-K for the year ended December 31, 2017).

4.17

• Seventh Supplemental Indenture, dated October 1, 1993, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.14 to Evergy Metro's Form 10-K for the year ended December 31, 2017).

4.18

• Eighth Supplemental Indenture, dated December 1, 1993, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.15 to Evergy Metro's Form 10-K for the year ended December 31, 2017).

4.19

• Eleventh Supplemental Indenture, dated August 15, 2005, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.2 to Evergy Metro's Form 10-Q for the quaiier ended September 30, 2005).

4.20

• Thirteenth Supplemental Indenture, dated March 1, 2009, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.3 to Evergy Metro's Form 8-K filed on March 24, 2009).

4.21

• Fourteenth Supplemental Indenture, dated March 1, 2009, Evergy between Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.4 to Evergy Metro's Form 8-K filed on March 24, 2009).

158

4.22

• Fifteenth Supplemental Indenture, dated June 30, 2011, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy Metro's Form 10-Q for the quarter ended June 30, 2011).

4.23

• Sixteenth Supplemental Indenture, March 1, 2019, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) UMB Bank N.A., as trustee (Exhibit 4.3 to Evergy's Form 8-K filed on March 14, 2019).

4.24

• Seventeenth Supplemental Indenture, dated March 27, 2019, Evergy between Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee (Exhibit 4.1 to Evergy's Form 8-K filed on March 27, 2019).

4.25

• Indenture, dated December 1, 2000, between Evergy Metro, Inc. Evergy (formerly Kansas City Power & Light Company) and The Bank of Evergy Metro New York, as trustee (Exhibit 4(a) to Evergy Metro's Fonn 8-K filed on December 18, 2000).

4.26

• Indenture, dated March 1, 2002, between Evergy Metro, Inc. Evergy (formerly Kansas City Power & Light Company) and The Bank of Evergy Metro New York, as trustee (Exhibit 4.1.b. to Evergy Metro's Form 10-Q for the quarter ended March 31, 2002).

4.27

• Supplemental Indenture No. 1, dated November 15, 2005, Evergy between Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York, as trustee (Exhibit 4.2.j to Evergy Metro's Form 10-K for the year ended December 31, 2005).

4.28

• Supplemental Indenture No. 2, dated March 1, 2019, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon, as trustee (Exhibit 4.2 to Evergy's Form 8-K filed on March 14, 2019).

4.29

• Indenture, dated May 1, 2007, between Evergy Metro, Inc. Evergy (formerly Kansas City Power & Light Company) and The Bank of Evergy Metro New York Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 4, 2007).

4.30

• Supplemental Indenture No. 1, dated June 4, 2007, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on June 4, 2007).

4.31

• Supplemental Indenture No. 2, dated March 11, 2008, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Trust Company, N.A., as trustee (Exhibit 4.2 to Evergy Metro's Form 8-K filed on March 11, 2008).

159

4.32

• Supplemental Indenture No. 3, dated September 20, 2011, Evergy between Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Fonn 8-K filed on September 20, 2011).

4.33

• Supplemental Indenture No. 4, dated March 14, 2013, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2013).

4.34

• Supplemental Indenture No. 5, dated August 18, 2015, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., trustee (Exhibit 4.1 to Everg Metro's Form 8-K filed on August 18, 2015).

4.35

• Supplemental Indenture No. 6, dated June 15, 2017, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on June 15, 2017).

4.36

• Supplemental Indenture No. 7, dated March 1, 2018, between Evergy Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 1, 2018).

4.37

• Supplemental Indenture No. 8, dated March 1, 2019, between Evergy Evergy Metro, Inc. (fonnerly Kansas City Power & Light Evergy Metro Company) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Metro's Form 8-K filed on March 14, 2019).

4.38

• Note Purchase Agreement, dated August 16, 2013, among Evergy Evergy Missouri West, Inc. (formerly KCP&L Greater Missouri Operations Company) and the purchasers party thereto (Exhibit 4.1 to Great Plains Energy's Form 8-K filed on August 19, 2013).

4.39

• Note Purchase Agreement dated February 12, 2019, among Evergy Evergy Missouri West, Inc. (fonnerly KCP&L Greater Missouri Operations Company) and the purchasers party thereto (Exhibit 4.5 to Evergy's Form 10-Q for the quarter ended March 31, 2019).

4.40

• Mortgage and Deed of Trust, dated July 1, 1939, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Evergy Kansas Central Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.35 to Evergy Kansas Central's Fonn 10-K for the fiscal year ended December 31, 2018).

160

4.41

• First Supplemental Indenture, dated July 1, 1939, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and The Evergy Kansas Central Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.36 to Evergy Kansas Central's Form I 0-K for the fiscal year ended December 31, 2018).

4.42

• Second Supplemental Indenture, dated April I, 1949, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Evergy Kansas Central The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.37 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).

4.43

• Sixth Supplemental Indenture, dated October 4, 1951, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Evergy Kansas Central The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.38 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).

4.44

• Fourteenth Supplemental Indenture, dated May I, 1976, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy, Inc. and Evergy Kansas Central The Kansas Power and Light Company) and Harris Trust and Savings Bank, as trustee (Exhibit 4.39 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).

4.45

• Twenty-Eighth Supplemental Indenture, dated July I, 1992, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4.40 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018).

4.46

• Thirty-Second Supplemental Indenture, dated April 15, 1994, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(s) to Evergy Kansas Central's Fonn I 0-K for the fiscal year ended December 31, 1994).

4.47

• Thirty-Fourth Supplemental Indenture, dated June 28, 2000, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc. and Western Resources, Inc.) and Harris Trust and Savings Bank, as trustee (Exhibit 4(v) to Evergy Kansas Central's Form I 0-K for the fiscal year ended December 31, 2000).

4.48

• Thirty-Sixth Supplemental Indenture, dated June I, 2004, between Evergy Evergy Kansas Central, Inc. (formerly Westar Energy Inc.) and Evergy Kansas Central BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).

4.49

• Thirty-Eighth Supplemental Indenture, dated January 18, 2005, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.3 to Evergy Kansas Central's Form 8-K filed on January 18, 2005).

4.50

• Thirty-Ninth Supplemental Indenture, dated June 30, 2005, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and BNY Midwest Trust Company, as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on July I, 2005).

161

4.51

• Forty-Second Supplemental Indenture, dated March 1, 2012, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on February 29, 2012).

4.52

• Forty-Second Supplemental (Reopening) Indenture, dated May Evergy 17, 2012, between Evergy Kansas Central, Inc. (fonnerly Westar Evergy Kansas Central Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on May 16, 2012).

4.53

• Forty-Third Supplemental Indenture, dated March 28, 2013, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on March 22, 2013).

4.54

• Forty-Fourth Supplemental Indenture, dated August 19, 2013, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on August 14, 2013).

4.55

• Forty-Fifth Supplemental Indenture, dated November 13, 2015, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on November 6, 2015).

4.56

• Forty-Sixth Supplemental Indenture, dated June 20, 2016, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on June 17, 2016).

4.57

• Forty-Seventh Supplemental Indenture, dated March 6, 2017, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on March 3, 2017).

4.58

• Forty-Eighth Supplemental Indenture, dated June 4, 2018, Evergy between Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on June 4, 2018).

4.59

• Forty-Ninth Supplemental Indenture, dated August 19, 2019, Evergy between Evergy Kansas Central, Inc. (fonnerly Westar Energy, Evergy Kansas Central Inc.) and The Bank of New York Mellon Trust Company, N.A., as trustee (Exhibit 4.1 to Evergy Kansas Central's Form 8-K filed on August 19, 2019).

162

4.60

• Senior Indenture, dated August 1, 1998, between Evergy Kansas Evergy Central, Inc. (formerly Westar Energy, Inc.) and Deutsche Bank Evergy Kansas Central Trust Company Americas, as trustee, including Form of Senior Note (Exhibit 4.1 to Evergy Kansas Central's Form 10-Q for the quarter ended June 30, 1998).

4.61

• Form of Subordinated Indenture between Evergy Kansas Central, Evergy Inc. (formerly Westar Energy and The Bank of New York Mellon Evergy Kansas Central Trust Company, N.A., as trustee, including Form of Subordinated Note (Exhibit 4.3 to Evergy Kansas Central's Form S-3 filed on March 18, 2016 (No. 333-210266)).

4.62 Description of Securities. Evergy Evergy Kansas Central Evergy Metro 10.1 *+ Evergy, Inc. (successor to Great Plains Energy Incorporated) Evergy Amended Long-Term Incentive Plan, as amended effective on Evergy Metro May 3, 2016 (Exhibit 10.4 to Great Plains Energy's Form 10-Q for the quarter ended June 30, 2016). 10.2 *+ Evergy, Inc. ( successor to Great Plains Energy Incorporated) Evergy Long-Term Incentive Plan Awards Standards and Performance Evergy Metro Criteria Effective as of January 1, 2016 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016). 10.3 *+ Evergy, Inc. ( successor to Great Plains Energy Incorporated) Evergy Long-Term Incentive Plan Awards Standards and Performance Evergy Metro Criteria Effective January 1, 2017 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017). 10.4 *+ Evergy, Inc. ( successor to Great Plains Energy Incorporated) Evergy Long-Term Incentive Plan Awards Standards and Performance Evergy Metro Criteria Effective January 1, 2018 (Exhibit 10.3 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018). 10.5 *+ Form of Evergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2016 three-year Performance Share Agreement Evergy Metro (Exhibit 10 .1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016). 10.6 *+ Form of Amendment to Appendix A to Evergy, Inc. (formerly Evergy Great Plains Energy Incorporated) 2016 three-year Performance Evergy Metro Share Agreement (Exhibit 10.6 to Evergy's F01m 10-K for the fiscal year ended December 31, 2018). 10.7 *+ Form of Evergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2016 Restricted Stock Agreement (Exhibit 10.2 to Evergy Metro Great Plains Energy's Form 10-Q for the quarter ended March 31, 2016). 10.8 *+ Form of Evergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2017 three-year Performance Share Agreement Evergy Metro (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017). 163

10.9 *+ Form of Amendment to Appendix A to Evergy, Inc. (successor to Evergy Great Plains Energy Incorporated) 2017 three-year Performance Evergy Metro Share Agreement (Exhibit 10.9 to Evergy's Form 10-K for the fiscal year ended December 31, 2018). 10.10 *+ Fonn ofEvergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2017 Restricted Stock Agreement (Exhibit 10.2 to Evergy Metro Great Plains Energy's Form 10-Q for the quarter ended March 31, 2017). 10.11 *+ Form of Evergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2018 three-year Performance Share Agreement Evergy Metro (Exhibit 10.1 to Great Plains Energy's Form 10-Q for the qua1ter ended March 31, 2018). 10.12 *+ Form of Amendment to Appendix A to Evergy, Inc. (successor to Evergy Great Plains Energy Incorporated) 2018 three-year Perfonnance Evergy Metro Share Agreement (Exhibit 10.12 to Evergy's Form 10-K for the fiscal year ended December 31, 2018). 10.13 *+ Form ofEvergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2018 Restricted Stock Agreement (Exhibit 10.2 to Evergy Metro Great Plains Energy's Form 10-Q for the quarter ended March 31, 2018). 10.14 *+ Form ofEvergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2018 Restricted Stock Unit Agreement (Exhibit 10.1 Evergy Metro to Great Plains Energy's Fonn 8-K filed on June 4, 2018). 10.15 *+ Form ofEvergy, Inc. (successor to Great Plains Energy Evergy Incorporated) 2018 Cash Retention Payment Agreement (Exhibit Evergy Metro 10.2 to Great Plains Energy's Form 8-K filed on June 4, 2018). 10.16 *+ Evergy, Inc. Long-Term Incentive Plan (formerly the Great Plains Evergy Energy Incorporated Long-Term Incentive Plan, as amended), Evergy Metro effective June 4, 2018 (Exhibit 99 .1 to Evergy's Registration Evergy Kansas Central Statement on Form S-8 filed on June 15, 2018 (File No. 333-225673)). 10.17 *+ Form of Evergy, Inc. 2019 Performance-Based Restricted Stock Evergy Unit Agreement (Exhibit 10.1 to Evergy's Form 8-K filed on Evergy Metro February 15, 2019). Evergy Kansas Central 10.18 *+ Form ofEvergy, Inc. 2019 Time-Based Restricted Stock Unit Evergy Agreement (Exhibit 10.2 to Evergy's Form 8-K filed on February Evergy Metro 15, 2019). Evergy Kansas Central 10.19 + Fonn of Evergy, Inc. 2020 Performance-Based Restricted Stock Evergy Unit Agreement. Evergy Metro Evergy Kansas Central 164

10.20 + Form of Evergy, Inc. 2020 Time-Based Restricted Stock Unit Evergy Agreement. Evergy Metro Evergy Kansas Central 10.21 *+ Evergy Kansas Central, Inc. (fonnerly Westar Energy, Inc.) Evergy Amended and Restated Long-Term Incentive and Share Award Evergy Kansas Central Plan, effective January 1, 2016 (Appendix B to Evergy Kansas Central's Proxy Statement filed on April 1, 2016). 10.22 *+ Form of Evergy Kansas Central, Inc. (formerly Westar Energy, Evergy Inc.) 2018 Restricted Share Unit Agreement (Exhibit 10.1 to Evergy Kansas Central Evergy Kansas Central's Form 8-K filed on June 4, 2018). 10.23 *+ Evergy, Inc. 2019 Annual Incentive Plan (Exhibit 10.5 to Evergy's Evergy Form 10-Q for the quarter ended March 31, 2019). Evergy Metro Evergy Kansas Central 10.24 + Evergy, Inc. 2020 Annual Incentive Plan. Evergy Evergy Metro Evergy Kansas Central 10.25 *+ Form ofindemnificationAgreement with Evergy, Inc. officers and Evergy directors (Exhibit 10.2 to Evergy's Form 10-Q for the quarter Evergy Metro ended September 30, 2018). Evergy Kansas Central 10.26 *+ Fo1m of Evergy, Inc. (successor to Great Plains Energy Evergy Incorporated) Change in Control Severance Agreement (Exhibit Evergy Metro 10.1.e to Great Plains Energy's Form 10-Q for the quarter ended September 30, 2006). 10.27 *+ Form of Evergy Kansas Central, Inc. (fonnerly Westar Energy, Evergy Inc.) Amended and Restated Change in Control Agreement Evergy Kansas Central (Exhibit 1 O(g) to Evergy Kansas Central's Form 10-K for the period ended December 31, 2015). 10.28 *+ Form of Evergy, Inc. Amended and Restated Change-in-Control Evergy Severance Agreement (Exhibit 10.4 to Evergy's Form 10-Q for the Evergy Metro quarter ended March 31, 2019). Evergy Kansas Central 10.29 *+ Evergy, Inc. Executive Severance Plan, dated November 6, 2019 Evergy (Exhibit 10.1 to Evergy's Form 10-Q for the quarter ended September 30, 2019). 10.30 *+ Evergy, Inc. Supplemental Executive Retirement Plan, effective Evergy June 4, 2018 (Exhibit 10.6 to Evergy's Form 10-Q for the quarter Evergy Metro ended June 30, 2018). Evergy Kansas Central 10.31 *+ Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Evergy Retirement Benefit Restoration Plan (Exhibit 10.1 to Evergy Evergy Kansas Central Kansas Central's Form 8-K filed on April 2, 2010). 165

10.32 *+ Amendment dated December 12, 2018 to Evergy Kansas Central, Evergy Inc. (formerly Westar Energy, Inc.) Retirement Benefit Evergy Kansas Central Restoration Plan (Exhibit 10.35 to Evergy Kansas Central's Form 10-K for the fiscal year ended December 31, 2018). 10.33 *+ Evergy Kansas Central, Inc. (formerly Westar Energy, Inc.) Non- Evergy Employee Director Nonqualified DefeITed Compensation Plan, as Evergy Kansas Central amended and restated May 17, 2018 (Exhibit 10.8 to Evergy Kansas Central's Form 10-Q for the quarter ended June 30, 2018). 10.34 *+ Evergy, Inc. Nonqualified DefeITed Compensation Plan, effective Evergy June 4, 2018 (Exhibit 10.39 to Evergy's Form 10-K for the fiscal Evergy Metro year ended December 31, 2018). Evergy Kansas Central 10.35 *+ Summary ofEvergy, Inc. Non-Employee Director Compensation Evergy (Exhibit 10.9 to Evergy's Form 10-Q for the quarter ended June 30, 2018). 10.36

• Credit Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Evergy Metro, inc. (formerly Kansas City Power & Light Evergy Metro Company), Evergy Missouri West, Inc. (formerly KCP&L Greater Evergy Kansas Central Missouri Operations Company), Evergy Kansas Central, Inc.

(formeITly Westar Energy, Inc.), the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents patty thereto (Exhibit 10.1 to Evergy's Form 8-K filed September 18, 2018). 10.37

• First Amendment, dated November 30, 2018, to Credit Evergy Agreement, dated September 18, 2018, among Evergy, Inc., Evergy Metro Evergy Metro, Inc. (formerly Kansas City Power & Light Evergy Kansas Central Company), Evergy Missouri West (formerly KCP&L Greater Missouri Operations Company), Evergy Kansas Central, Inc.

(formerly Westar Energy, Inc.), the several lenders from time to time parties thereto, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender and the other issuing lenders and agents party thereto (Exhibit 10.42 to Evergy's Form 10-K for the fiscal year ended December 31, 2018). 10.38

• Term Loan Agreement, dated March 15, 2019, by and among Evergy Evergy, Inc., Wells Fargo Bank, National Association, as Administrative Agent, and the lenders refelTed to therein (Exhibit 10.1 to Evergy's Form 8-K on March 15, 2019).

10.39

• Guaranty, dated July 15, 2008, issued by Evergy, Inc. (successor Evergy to Great Plains Energy Incorporated) in favor of Union Bank of California, N.A., as successor trustee, and the holders of the Evergy Missouri West, Inc. (formerly Aquila, Inc.), 8.27% Senior Notes due November 15, 2021 (Exhibit 10.6 to Great Plains Energy's Fo1m 8-K filed on July 18, 2008).

21.1 List of Subsidiaries. Evergy Evergy Kansas Central 23.1 Consent of Independent Registered Public Accounting Firm. Evergy 166

23.2 Consent of Independent Registered Public Accounting Firm. Evergy Metro 23.3 Consent of Independent Registered Public Accounting Firm. Evergy Kansas Central 24.1 Powers of Attorney. Evergy 24.2 Powers of Attorney. Evergy Kansas Central 24.3 Powers of Attorney. Evergy Metro 31.1 Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham. Evergy 31.2 Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma. Evergy 31.3 Rule 13a-14(a)/15d-14(a) Certification ofTeny Bassham. Evergy Metro 31.4 Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma. Evergy Metro 31.5 Rule 13a-14(a)/15d-14(a) Certification of Terry Bassham. Evergy Kansas Central 31.6 Rule 13a-14(a)/15d-14(a) Certification of Anthony D. Somma. Evergy Kansas Central 32.1 ** Section 1350 Certifications. Evergy 32.2 ** Section 1350 Certifications. Evergy Metro 32.3 ** Section 1350 Certifications. Evergy Kansas Central 101.INS *** XBRL Instance Document. n/a 101.SCH Inline XBRL Taxonomy Extension Schema Document. Evergy Evergy Metro Evergy Kansas Central 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Evergy Document. Evergy Metro Evergy Kansas Central 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Evergy Document. Evergy Metro Evergy Kansas Central 101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document. Evergy Evergy Metro Evergy Kansas Central 167

IOI.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Evergy Document. Evergy Metro Evergy Kansas Central 104 Cover Page Interactive Data File (embedded within the Inline Evergy XBRL document). Evergy Metro Evergy Kansas Central

• Filed with the SEC as exhibits to prior SEC filings and are incorporated herein by reference and made a part hereof. The SEC filings and the exhibit number of the documents so filed, and incorporated herein by reference, are stated in parenthesis in the description of such exhibit.
  • Furnished and shall not be deemed filed for the purpose of Section 18 of the Exchange Act. Such document shall not be incorporated by reference into any registration statement or other document pursuant to the Exchange Act or the Securities Act of 193 3, as amended, unless otherwise indicated in such registration statement or other document.
    • The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

+ Indicates management contract or compensatory plan or arrangement. Li Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K, and Evergy will furnish the omitted schedules to the SEC upon request. Copies of any of the exhibits filed with the SEC in connection with this report may be obtained from the applicable registrant upon written request. The registrants agree to furnish to the SEC upon request any instrument with respect to long-term debt as to which the total amount of securities authorized does not exceed 10% of total assets of such registrant and its subsidiaries on a consolidated basis. 168

Schedule I - Parent Company Financial Statements EVERGY, INC. Statements of Income of Parent Company Period from June 4, 2018 through 2019 December 31, 2018 OPERATING EXPENSES: (millions) Investment earnings 32.7 26.3 NET INCOME $ 664.4 $ 324.9 Derivative hedging activity Income tax benefit 16.5 1.4 Reclassification to expenses, net of taxes 1.5 Other comprehensive income from subsidiaries, net (0.6) 1.0 COMPREHENSIVE INCOME $ 617.4 $ 321.9 The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements. 169

EVERGY, INC. Balance Sheets of Parent Company December 31 2019 2018 ASSETS (millions, except share amounts) CURRENT ASSETS: c.~h. a11net Other 16.9 17.6 Commitments and Contingencies (Note 15) Evergy, Inc. Shareholders' Equity: Common sto~k- 600,000,000 shares autil1or1ze,1, ...,... ,,;, .., -'-'~ Retained earnings 1,241.5

      ,Ac9mntilated other comprehensive loss                                                                                                 *. (3.0)

Total shareholders' equity 8,445.2 9,906.8

TOTAL.LIJ\BILITIBS AND EQUITY .$ 10,741;6 ****10,604:4 The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements.

170

EVERGY, INC. Statements of Cash Flows of Parent Company Period from June 4, 2018 through 2019 December 31, 2018 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: (millions) Net income $ 664.4 $ .324.9 Adjustments to reconcile income to net cash from operating activities: No11-cash compensation lo.3 10.0 Net deferred income taxes and credits 21.4 (6.3) Equityin earnings froih subsidiaries .(698.2) qM,7) Other 2.1 Changes in working capitaritems: Accounts receivable from subsidiaries 8.9 (8.5) Income taxes receivable (7.8) (o:2J Prepaid expenses and other current assets (0.1) (1.0) Accounts payable to subsidiaries. (15.0) Accrued taxes (35.2) Accrued interest 12.5 (13.6) Other current liabilities 1.7 2.4 Cash dividends. from subsidiaries 460:0 236.0 Changes in other assets 0.1 Changes in otherJiabilitie~ 2.0:0 Cash Flows from Operating Activities 462.9 168.6 CASH FLOWS FR.OM tUSED IN) INVESTING ACTIVITIES: Cash acquired from the merger with Great Plains Energy Proceeds from interest rate swap Cash Flows from Investing Activities CASHFLOW::S FROMJ:USEPIN)FINANCING ACTIVITIES:. Short term debt, net 20.0 (56.1) Proceeds from long-term debt 1,585;0 Payment for settlement of interest rate swap accounted for as a cash flow hedge (69.8) Cash diyidends.paicl (462.5). (245.9) Repurchase of common stock (1,628.7) (1,042.3) Other financing activities (2A). Cash Flows used in Financing Activities (558.4) (1,344.3) NET CHANGE IN CASH AND CASH EQUNAEENTS < .* (95.5) CASH AND CASH EQUIVALENTS: Beginning of period 107,1 End of period $ 11.6 $ 107.1 The accompanying Notes to Financial Statements of Parent Company are an integral part of these statements. 171

EVERGY, INC. NOTES TO FINANCIAL STATEMENTS OF PARENT COMPANY The Evergy, Inc. Notes to Consolidated Financial Statements in Part II, Item 8 should be read in conjunction with the Evergy, Inc. Parent Company Financial Statements.

1. ORGANIZATION AND BASIS OF PRESENTATION The Evergy, Inc. Parent Company Financial Statements have been prepared to comply with Rule 12-04 of Regulation S-X.

Evergy, Inc. was incorporated in 2017 as Monarch Energy, a wholly-owned subsidiary of Great Plains Energy. Prior to the closing of the merger transactions, Monarch Energy changed its name to Evergy, Inc. and did not conduct any business activities other than those required for its formation and matters contemplated by the Amended Merger Agreement. On June 4, 2018, in accordance with the Amended Merger Agreement, Great Plains Energy merged into Evergy, Inc., with Evergy, Inc. surviving the merger and King Energy merged into Evergy Kansas Central, with Evergy Kansas Central surviving the merger. These merger transactions resulted in Evergy, Inc. becoming the parent entity of Evergy Kansas Central and the direct subsidiaries of Great Plains Energy, including Evergy Metro and Evergy Missouri West. See Note 2 to the consolidated financial statements for additional information regarding the merger. Evergy, Inc. operates primarily through its wholly-owned direct subsidiaries. Evergy, Inc.'s investments in subsidiaries are accounted for using the equity method. Fair value adjustments and goodwill related to the acquired assets and liabilities of Great Plains Energy and its direct subsidiaries are only reflected on Evergy's consolidated financial statements and as such, are not included in Evergy, Inc.'s Parent Company Financial Statements. See Note 1 to the consolidated financial statement for additional information.

2. LONG-TERMDEBT See Note 13 to the consolidated financial statements for additional information on Evergy, Inc.'s long-term debt.

3. GUARANTEES See Note 16 to the consolidated financial statements for additional information regarding Evergy, Inc.'s guarantees.

4. DIVIDENDS Cash dividends paid to Evergy, Inc. by its subsidiaries were $460.0 million for the year ended December 31, 2019 and $236.0 million for the period from June 4, 2018 through December 31, 2018. See Note 18 to the consolidated financial statements for information regarding the dividend restrictions of Evergy, Inc. and its subsidiaries.

172

Schedule II - Valuation and Qualifying Accounts and Reserves Evergy, Inc. Valuation and Qualifying Accounts Years Ended December 31, 2019, 2018 and 2017 Additions Charged Balance At To Costs Charged Balance Beginning And To Other At End Description Of Period Expenses Accounts Deductions Of Period Year Ended December 31, 2019 (millions) Year Ended December 31, 2017 AflO\YarlcffC>r:uhcoUe~tibleacf()'l.lllts* $ (a) Recoveries. (bl Uncollectible accounts charged off. (cJ Reversal of tax valuation allowance. (d) Primarily represents the addition of Great Plains Energy's allowance as of the date of the merger. (el Recoveries and the addition of Great Plains Energy's allowance as of the date of the merger. Evergy Kansas Central, Inc. Valuation and Qualifying Accounts Years Ended December 31, 2019, 2018 and 2017 Additions Charged Balance At To Costs Charged Balance Beginning And To Other AtEnd Description Of Period Expenses Accounts Deductions Of Period Year Ended December 31, 2019 (millions) (a) (b)

                                                                                                                        $     3.8 Tax valuation allowance                                                                                    1.7 (c)
'{ear~nd~u]);cem'b~~31;2918".

Allowance for uncollectible accounts $ 6.7 $ 9.0 $ 7.4 (a)

                                                                                                           $   19.2(b)  $     3.9 1.7 Year Ended December 31, 2017
    *Allow1nctefotllllfon~ctiblt)accJtints*                                                                $   11.s (b) $     6.7 (a) Recoveries.

(bl Uncollectible accounts charged off. (cJ Reversal of tax valuation allowance. 173

Evergy Metro, Inc. Valuation and Qualifying Accounts Years Ended December 31, 2019, 2018 and 2017 Additions Charged Balance At To Costs Charged Balance Beginning And To Other AtEnd Description Of Period Expenses Accounts Deductions Of Period Year Ended December 31, 2019 (millions) Year Ended December 31, 2018 Year Ended December 31, 2017 (a) Recoveries. (b) Uncollectible accounts charged off. (c) Reversal of tax valuation allowance. 174

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EVERGY, INC. Date: March 2, 2020 By: Isl Terry Bassham Terry Bassham President and Chief Executive Officer Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date Isl Terry Bassham Director, President and Chief Executive Officer ) Terry Bassham (Principal Executive Officer) )

                                                                                               )

Isl Anthony D. Somma Executive Vice President and Chief Financial Officer ) Anthony D. Somma (Principal Financial Officer) ) Isl Steven P. Busser Vice President - Risk Management and Controller j Steven P. Busser (Principal Accounting Officer) ) Mark A. Ruelle* Chairman of the Board of Directors j Mollie Hale Carter* Director j Charles Q. Chandler IV* Director j Gary D. Forsee* Director j Scott D. Grimes* Director j March 2, 2020 Richard L. Hawley* Director j Thomas D. Hyde* Director j B. Anthony Isaac* Director j Sandra A.J. Lawrence* Director j Ann D. Murtlow* Director j Sandra J. Price* Director j John J. Sherman* Director j S. Carl Soderstrom Jr.* Director j John Arthur Stall* Director j

• By Isl Terry Bassham Terry Bassham Attorney-in-Fact*

175

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EVERGY KANSAS CENTRAL, INC. Date: March 2, 2020 By: /s/ Terry Bassham Terry Bassham President and Chief Executive Officer Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date Isl Terry Bassham Director, President and Chief Executive Officer ) Terry Bassham (Principal Executive Officer) )

                                                                                               )

Isl Anthonv D. Somma Executive Vice President and Chief Financial Officer ) Anthony D. Somma (Principal Financial Officer) ) Isl Steven P. Busser Vice President - Risk Management and Controller j Steven P. Busser (Principal Accounting Officer) ) Mark A. Ruelle* Chairman of the Board of Directors j Mollie Hale Carter* Director j Charles Q. Chandler IV* Director j Gary D. Forsee* Director j Scott D. Grimes* Director j March 2, 2020 Richard L. Hawley* Director j Thomas D. Hyde* Director j B. Anthony Isaac* Director j Sandra A.J. Lawrence* Director j Ann D. Murtlow* Director j Sandra J. Price* Director j John J. Sherman* Director j S. Carl Soderstrom Jr.* Director j John Arthur Stall* Director j

• By /s/ Teny Bassham Terry Bassham Attorney-in-Fact*

176

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EVERGY METRO, INC. Date: March 2, 2020 By: Isl Terry Bassham Terry Bassham President and Chief Executive Officer Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date Isl Terry Bassham Director, President and Chief Executive Officer ) Terry Bassham (Principal Executive Officer) )

                                                                                              )

Isl Anthony D. Somma Executive Vice President and Chief Financial Officer ) Anthony D. Somma (Principal Financial Officer) )

                                                                                               )

Isl Steven P. Busser Vice President - Risk Management and Controller ) Steven P. Busser (Principal Accounting Officer) ) Mark A. Ruelle* Chairman of the Board of Directors j Mollie Hale Carter* Director j Charles Q. Chandler IV* Director j Gary D. Forsee* Director j Scott D. Grimes* Director j March 2, 2020 Richard L. Hawley* Director j Thomas D. Hyde* Director j B. Anthony Isaac* Director j Sandra A.J. Lawrence* Director j Ann D. Murtlow* Director j Sandra J. Price* Director j John J. Sherman* Director j S. Carl Soderstrom Jr.* Director j John Arthur Stall* Director j

• By Isl Terry Bassham Terry Bassham Attorney-in-Fact*

177

[THIS PAGE INTENTIONALLY LEFT BLANK] Directors Mark A. Ruelle Charles Q. Chandler IV B. Anthony Isaac Sandra J. Price Chairman of the Board, Chairman, President and Chief Former Senior Vice President Former Senior Vice President former President Executive Officer of INTRUST and Head of Select Service Strategy Human Resources, and Chief Executive Officer Bank, NA and Development at Hyatt Hotels Sprint Corporation of Westar Energy Corporation Gary D. Forsee John J. Sherman Kirkland B. Andrews Former President, University Paul M. Keglevic Chairman and Chief Executive Chief Financial Officer, of Missouri System Former Chief Executive Officer, Officer, Kansas City Royals NRG Energy, Inc. Energy Future Holdings Baseball Club Scott D. Grimes Terry Bassham Director, Chief Executive Officer Sandra A.J. Lawrence S. Carl Soderstrom Jr. President and and Founder of Cardlytics, Inc. Former Executive Vice President Former Senior Vice President Chief Executive Officer and Chief Administrative Officer and Chief Financial Officer Richard L. Hawley of Children's Mercy Hospital for ArvinMeritor Mollie Hale Carter Former Executive Vice President Chairman, Chief Executive Officer and Chief Financial Officer Ann D. Murtlow John Arthur Stall and President of FirstSun of Nicor, Inc. and Nicor Gas President and Chief Executive Former President NextEra Capital Bancorp; Chairman Officer of the United Way Energy, Inc. - Nuclear Division Thomas D. Hyde of Central Indiana of Sunflower Bank Former Executive Vice President Legal, Compliance, Ethics and Corporate Secretary of Wal-Mart Stores, Inc. Officers Terry Bassham Chuck Caisley John Bridson Maria Jenks President and Senior Vice President, Vice President, Vice President, Chief Executive Officer Marketing, Public Affairs Generation Supply Chain and Chief Customer Officer Kevin Bryant Steve Busser Jeff Martin Executive Vice President, Heather Humphrey Vice President, Vice President, Customer Chief Operating Officer Senior Vice President, Risk Management and Community Operations General Counsel and and Controller Greg Greenwood Kevin Noblet Corporate Secretary Executive Vice President, Ellen Fairchild Vice President, Strategy and Chief Charles King Vice President, Safety and Operations Planning Administrative Officer Senior Vice President, Chief Compliance Officer Lori Wright Chief Technology Officer Tony Somma Deb Grunst Vice President, Executive Vice President, Bruce Akin Vice President, Corporate Planning, Investor Chief Financial Officer Vice President, Transmission Information Technology Relations and Treasurer and Distribution Jeri Banning Darrin Ives Senior Vice President, Jeff Beasley Vice President, Chief People Officer Vice President, Regulatory Affairs Customer Operations EVERGY, INC FORM 10-K COMMON STOCK DIVIDEND Evergy, lnc.'s 2019 annual report on form 10-K filed with the Securities Quarter 2019 2018 and Exchange Commission can be found in the Investor Relations First $0.4750

• section of our website, www.evergy.com. Second $0.4750
• The 10-K is available at no charge Third $0.4750 $0.4600 upon written request to: Fourth $0.5050 $0.4750 Corporate Secretary TWO-YEAR COMMON STOCK HISTORY Evergy, Inc. 2019 2018 P.O. Box 418679 High Low Quarter High Low Kansas City, MO 64141-9679 First $59.940 $54.570 *
• MARKET INFORMATION Second $61.540 $56.330 *
• Evergy, Inc. common stock is traded on the New York Stock Exchange Third $67.810 $59.540 $59.280 $54.170 under the ticker symbol "EVRG". We had 23,708 registered shareholders Fourth $66.540 $61.970 $61.100 $54.260 of record as of February 25, 2020.

                                                                            *For legacy Great Plains Energy and Westar Energy dividend amounts and stock prices, please visit the Investor Relations section of our website, www.evergy.com.

WEBSITE We have a website at www.evergy.com. Our Investor Relations section ANNUAL MEETING OF SHAREHOLDERS includes our SEC filings, news releases, stock quotes, community and Evergy, lnc.'s annual meeting of shareholders will be held at 10:00 a.m., May 5, environmental efforts, and information of general interest to investors. 2020 at Evergy, Inc., Cedar Point Training Facility, 10058 Raytown Road, Also located on the website are Governance Documents and Committee Kansas City, MO 64134. Charters for the Board of Directors. These documents are available at no charge upon written request to the Corporate Secretary. REGISTERED SHAREHOLDER INQUIRIES & TRANSFER AGENT & STOCK REGISTRANT FINANCIAL COMMUNITY INQUIRIES For account information or assistance, including change of address, Securities analyst and investment professionals seeking information stock transfer, dividend payments, duplicate accounts, or to report about Evergy, Inc. may contact Investor Relations at 785-575-8227. a lost certificate, please contact our transfer agent, Computershare at Computershare Trust Company, NA, P. 0. Box 505000, Louisville, KY 40233-5000, Telephone: 866-239-8177.

r Evergy, Inc. P.O. Box 418679 Kansas City, Missouri 64141-9679

Enclosure II to RA 20-0046 Kansas Electric Power Cooperative, Inc. 2019 Annual Report (36 Pages)

20 19 ANNUAL REPORT KANSAS ELECTRIC POWER COOPERATIVE

TABLE OF CONTENTS OUR 2 l M I SS I O N & V I S I O N STAT E M E N TS MISSION KEPCo exists on behalf of 3 l O U R STA F F its members to produce, procure, transmit, deliver, 4 l B OA R D P R E S I D E N T

                                        & C E O M E SS AG E and maintain a reliable supply of wholesale electricity within "nancial   7     l  L E G I S L AT I V E H I G H L I G H TS guidelines and risk tolerances established by the Board.

8 l O U R D I V E R S E P OW E R S U P P LY 9 l O P E R AT I N G STAT I ST I C S 10 l K E P Co B OA R D O F T R U ST E E S 12 l CO M M U N I T Y E N G AG E M E N T 13 l KSI ENGINEERING & U S DA I N F O R M AT I O N OUR 14 l F I N A N C I A L R E P O RTS VISION KEPCo will work to provide 35 l A B O U T K E P Co consumer-members the best possible value in reliable electricity and to play an active role in ON THE COVER helping to improve the A lineman from Victory Electric economy and quality of life. Cooperative, Dodge City, works at sunset. 2

2 0 1 9 A N N U A L R E P O RT OUR STAFF Suzanne Lane Mark Barbee Susan Cunningham Coleen Wells Exec. Vice President & CEO Sr. Vice President, Engineering Sr. Vice President, Regulatory & Sr. Vice President & CFO 3 years of service & Operations Government Affairs & General Counsel 18 years of service 22 years of service 2 years of service Stephanie Anderson Chris Davidson Terry Deutscher Mark Doljac Rebecca Fowler Finance & Benefits Analyst 2 Engineer 3 Manager, SCADA & Meter Maintenance Exec. Director, Regulatory Affairs Manager, Regulatory Affairs 6 years of service 7 years of service 20 years of service & Planning 1 year of service 10 years of service Shawn Geil Maurice Hall Robert Hammersmith Rick Johnson Shari Koch Exec. Director, Technical & Energy Services Sr. SCADA/Metering Technician - Wichita Sr. SCADA/Metering Technician - Salina Exec. Director, Engineering Finance & Accounts Payable/Payroll 9 years of service 6 years of service 12 years of service 1 year of service Specialist 2 13 years of service Mitch Long Matt Ottman John Payne Rita Petty Kelsey Schrempp Sr. SCADA/Metering Technician - Topeka Information Systems Specialist 2 Sr. Engineer Exec. Assistant & Manager, Office Services Administrative Assistant/Benefits 20 years of service 18 years of service 13 years of service 14 years of service Specialist 6 years of service Paul Stone Missy Tew Phil Wages Luke Zahner Operations Specialist Administrative Assistant/Receptionist Director of Member Services, Government Engineer 1 22 years of service 3 years of service Affairs & Business Development 1 year of service 21 years of service 3

FROM THE BOARD PRESIDENT AND EXECUTIVE VICE PRESIDENT & CEO POWERING PROGRESS As we reflect on 2019, the successes KEPCo received the highest accolades from the industry. accomplished on behalf of and in close As for our other resources, the Iatan 2 coal plant partnership with our members can be categorized performed well overall, especially considering the in one of three areas: powering rural Kansas, Missouri River flooding challenges. people serving people, and always making Our Southwest Power Administration and progress. Thanks to the dedication, perseverance, Western Area Power Administration hydro and diligence of the entire KEPCo family, we were resources continued to be low-cost, reliable pleased to provide reliable power at the lowest power supply sources. A benefit of the extreme rates to our members since 2010, and we want to precipitation in 2019 is that low-cost, supplemental highlight the key reasons this was possible. energy was available, which provided our members Suzanne Lane additional, cost-effective energy. Executive Vice President

& CEO                                      KEPCos Resources Provided Signi"cant Value                         KEPCos solar farm, Prairie Sky, continued to and Reliable Service in 2019                                      produce as expected, and our Sharpe Generating KEPCos main purpose is to partner with our                       Station was called to operate a record number of member-owners to economically power rural                         hours to help the Southwest Power Pool (SPP).

Kansas, and we couldnt have done so in 2019 without our diverse resource portfolio. 2019 KEPCos 2019 Success Was Possible was a strange year for weather, as extreme Because of People precipitation kept temperatures relatively low KEPCo would not be able to serve our members if in the early summer. But once the heat arrived, it werent for the people serving KEPCo namely it stayed longer, causing higher demands and the board of trustees and staff. Once again, the energy consumption between July and September board provided constant support, asked thoughtful compared to the same period in 2018. Thankfully, questions, offered meaningful challenges, and Dale Short our owned and purchased resources were very demonstrated genuine encouragement. They Board President reliable over the summer period. demonstrate the true definition of the cooperative For the first time in its 34-year history, Wolf spirit, constantly offering guidance, knowledge, and Creek Generating Station completed back-to-back, decisions that assure KEPCo is providing members 18-month operations in 2019. In addition, the plant the best experience and lowest rates possible while successfully completed its 23rd refueling outage and maintaining the reliability expected. KEPCo announces ConvergeOne Lane attends the J A N U A RY F E B R U A RY it will be allocating performs a CYBER REACTOR

                         $2.7                $2.7 MILLION in capital credits to members.

WELLNESS AND VULNERABILITY TECHNOLOGY COURSE for Utility JUNE MILLION ASSESSMENT Executives at the of KEPCo. Massachusetts Institute of Technology. 2019 RICK KEPCos KEPCo staff F E B R U A RY JOHNSON Executive Team participates in is hired as participates in a the American Executive STRATEGIC Hiking Society APRIL PLANNING NATIONAL JUNE Director, Engineering. RETREAT. TRAILS DAY. 4

2 0 1 9 A N N U A L R E P O RT As we reflect on 2019, the successes KEPCo accomplished on behalf of and in close partnership with our members can be categorized in one of three areas: powering rural Kansas, people serving people, and always making progress. As for the KEPCo staff, we would be nothing participation in NRECAs Commitment to Zero without the dedication, hard work, knowledge, Contacts initiative, and our employees dedication experience, and passion of our team! A few to safe acts, we are proud to have achieved the highlights from the past year include activities designation as one of the Kansas cooperatives that associated with key areas of our business such has had zero lost-time accidents for over a decade! as cybersecurity, safety, regulatory, legislative, In addition, 2019 marked another year of engineering, and team-bonding. financial strength for KEPCo, with all of our With regard to cybersecurity and safety, financial targets being met. On the legislative KEPCo greatly enhanced our cybersecurity and front, we participated in all Co-ops Vote events, safety training, practices, and communications, ultimately earning the 5-Star Co-op designation which ultimately led to zero cybersecurity or from NRECA, and advocated at the state and safety incidents for the year. After performing a federal levels on issues of importance to KEPCo cyber wellness evaluation and implementing the and our members. We actively represented our recommendations, we have also enhanced our members in the Westar (now Evergy) transmission employees cyber training, phish testing, and line loss filing, the Sunflower-MKEC merger, and overall vigilance when it comes to keeping our other relevant proceedings before the Kansas systems safe. Corporation Commission and Federal Energy We also established our first Safety Committee, Regulatory Commission. We also participated in which is tasked with not only enhancing training and/or carefully monitored the activities of SPP and communications, but also with updating our and its various committees and working groups. safety manual. With the committees guidance, our We have now fully staffed KEPCo Services Continued on page 6 KEPCo KEPCo staff REBECCA conducts a volunteers FOWLER A U G U ST STRATEGIC at Topeka is hired as PLANNING RONALD Manager, retreat with MCDONALD Regulatory J U LY J U LY its board of HOUSE. Affairs. trustees. Wolf Creek earns the KEPCo forms Wolf Creek SEPTEMBER industrys HIGHEST first SAFETY completes back-A U G U ST RATING for COMMITTEE. to-back, 18-month performance during operations its two most recent, WITHOUT AN J U LY 18-month operating cycles. UNPLANNED OUTAGE 5

Continued from page 5 each KEPCo member and key employees provided useful Inc. (KSI), our wholly owned engineering subsidiary. We feedback associated with areas of strength and opportunity. participated in team- and community-focused events like Another key element of 2019s success involved the walking in support of National Trails Day, volunteering at inaugural Employee Experience Team (EET). This cross-Ronald McDonald House, and collecting for the Boys and Girls functional employee team met regularly to discuss and Club food pantry. In addition, KEPCo employees provided implement enhancements to KEPCos work environment,

            $18,000 to local charities through their charitable giving.            which added to an already strong business culture. Based We also had great team fellowship by coming together for               on recommendations from the EET, key items implemented birthdays, achievements, and family celebrations, and also by          in 2019 were a dress for the day policy, volunteering offering support during times of employee or family health             opportunities, clean-up day, removal of our long-standing, issues, loss, or other concerns. Its proudly what were all about     off-site storage facility, and general team bonding activities.

at KEPCo! In 2019, the USDAs Rural Economic Development Loan and Grant (REDLG) program continued to be a great tool to KEPCos Continued Efforts Toward Progress partner with our members. REDLG resources were used to Were Evident in 2019 fund such important rural Kansas projects as construction of Powering rural Kansas at a reasonable price and with the a dentist office and much-needed repairs for a school. best people is an honor, but we must always make progress Last but not least, we continue to make significant and never rest -- and the past year was a great example. To progress in providing our members with stable rates. In fact, fully incorporate the ideas, opinions, and direction of our we are proud to say that our average member rate for 2019 board members into KEPCos priorities, we completed our was the lowest since 2010. This is even more monumental first strategic planning session since 2016. Staff was honored considering transmission rates for KEPCo have increased over to partner with our board to define four areas of focus: risk 160% in the past 15 years. management, emerging technologies, load management, With the energy market prices remaining low (and the and rates and rate design. These areas will be coupled with lucrative capacity pricing we are seeing for power supply our traditional core goals of financial strength, member and opportunities), additional DSM by our members, hard work employee experience, reliability, cyber security and safety, by and innovative solutions from our members and our and regulatory compliance to create KEPCos corporate-wide employee team, and strong operations from our resources, goals for 2020. we are optimistic that we will continue to be able to Also in 2019, we completed a comprehensive Demand- maintain stable rates to our members. Side Management (DSM) study. We contracted with GDS Thank you again to the board of trustees and staff for Associates, Inc., to determine the DSM programs and/or making 2019 another successful year for KEPCo and its enhancements that offer the best opportunities for cost- membership. savings for our members. In addition, 2019 brought the completion of the first CEO SUZANNE LANE, KEPCo EVP and CEO Listening Tour. These meaningful, face-to-face meetings with DALE SHORT, KEPCo Board President KEPCo Board of Lane completes DALE SEPTEMBER NOVEMBER Trustees approves NRECAs CEO SHORT is A U G U ST new Board Policy COMMITMENT re-elected NO. 42 Bulletin No. 42, Energy Risk TO ZERO CONTACTS, president of KEPCos Management. demonstrating KEPCos Board of commitment to safety. Trustees. MATT GDS Associates, KEPCo enters into a NOVEMBER OTTMAN Inc. completes a new CAPACITY A U G U ST OCTOBER earns comprehensive PURCHASE cybersecurity DEMAND-SIDE AGREEMENT certifications MANAGEMENT with Evergy beginning through NRECAs STUDY. in January 2021. RC3 program. 6

2 0 1 9 A N N U A L R E P O RT LEGISLATIVE HIGHLIGHTS For the past couple of legislative sessions, considerable attention has been given to the price of electricity in Kansas, as legislative and regulatory concepts have been deliberated to make rates in Kansas more regionally competitive. In 2019, the Kansas legislature passed Substitute for Senate Bill No. 69, which authorized a 29-topic study to evaluate the upward pressure on rates and offer recommendations to stabilize or mitigate the upward trend. The study topics included ratemaking practices and principles, investments in utility infrastructure, retail choice, energy efficiency, securitization, electric vehicles, and transmission investment, among several others. Phase one of the study, which evaluated about two-thirds of the study topics, was conducted by London Economics International, the consulting firm selected through a request for proposal process, over the latter half of 2019. Phase one was main street corridors, making state government completed and presented to the Kansas legislature work for rural Kansas, supporting agribusiness, in January 2020. Phase two of the study, awarded investing in rural infrastructure, and incentivizing to AECOM, along with its partner Energeia USA, is active tourism. Throughout the year, Lt. Governor to be completed by July 2020. Lynn Rogers embarked on a 12-community Another significant issue addressed in 2019 listening tour to hear firsthand from residents involved economic challenges in rural Kansas. and businesses in rural communities about issues Recognizing the need to focus attention and regarding rural economic prosperity. resources on rural communities, Governor Laura Further attention was given to rural economic Kelly established the Office of Rural Prosperity, prosperity as a new legislative committee, Rural with its stated purpose to improve life in rural Revitalization, was formed in the Kansas House of Kansas. The office was tasked with developing Representatives. Throughout the 2019 legislative rural housing, supporting rural hospitals, revitalizing Continued on page 34 KEPCo employees KEPCo earns Over the course of NOVEMBER DECEMBER DECEMBER collect for the designation 2019, KEPCo returns BOYS AND GIRLS CLUB of 5-STAR CO-OP $18.8 approximately $18.8 MILLION to its FOOD PANTRY. from NRECA. MILLION members through its Margin Stabilization Adjustment. Wolf Creek KEPCo completes 2019 KEPCo NOVEMBER DECEMBER DECEMBER successfully with the LOWEST completes completes AVERAGE the year its 23RD MEMBER with ZERO REFUELING ENERGY COST safety and OUTAGE. since 2010. cybersecurity incidents. 7

OUR DIVERSE POWER SUPPLY As part of its power supply strategy, KEPCo seeks to maintain a diversified and balanced power supply, which includes a mix of owning generation when prudent, purchasing power using a combination of long- and short-term contracts, adding renewables when cost effective, and incorporating demand side technology in power supply planning processes through member load management programs. KEPCos power supply continues to diversify and we are proud that approximately 60% of our energy resource mix is non-greenhouse gas emitting. Our energy mix includes: 70 MEGAWATTS of owned generation from the Wolf Creek Generating Station 30 MEGAWATTS of owned generation from the Iatan 2 Generating Plant 20 MEGAWATTS of peaking power from the Sharpe Generating Station 1 MEGAWATT of solar power from the Prairie Sky Solar Farm 100 MEGAWATTS of hydropower purchases from the Southwestern Power Administration 13 MEGAWATTS of hydropower purchases from the Western Area Power Administration partial requirement power purchases from regional utilities In an effort to create a long-term, reliable, economic power supply for its members, KEPCo has built a diverse power supply... 8

2 0 1 9 A N N U A L R E P O RT OPERATING STATISTICS AVERAGE MEMBER RATE AV E R AG E M E M B E R R AT E SOURCES OF ENERGY 85.0 76.3 Wolf Creek 73.7 73.5 73.3 24.9% 69.3 Mills per kWh 65.0 SWPA 17.1% Evergy 28.6% 45.0 Sunflower 2015 2016 2017 2018 2019 15.9% 500 Year Iatan 2 WAPA 9.4% 3.9% Prairie Sky 0.08% ANNUAL COINCIDENT PEAK DEMAND 450 432 Megawatts 427 400 425 414 418 Proudly, KEPCos current portfolio minimizes greenhouse gas emissions 350 with approximately 60% of its supply from non-greenhouse 300 2015 2016 2017 2018 2019 gas emitting sources. Year ANNUAL ENERGY SALES TO MEMBERS OPERATING EXPENSES 2,300,000 Wolf Creek O&M and A&G 2,218,433 10.2% Depreciation & Amortization 2,195,412 2,200,424 6.2% 2,101,917 2,083,646 Megawatt Hours KEPCo O&M and A&G 5.1% 1,800,000 Purchased Power 67.5% Interest 5.1% Nuclear Fuel 2.1% Iatan 2 O&M and A&G 1.4% Iatan 2 Fuel 2% 1,300,000 2015 2016 2017 2018 2019 Year 9

EXECUTIVE COMMITTEE MEMBERS DALE SHORT CHARLES GOECKEL President Executive Committee Member DOUGLAS JACKSON MIKE MORTON Vice President Executive Committee Member STEVEN FOSS KIRK THOMPSON Secretary Executive Committee Member DEAN ALLISON Treasurer Larry Froese, Trustee Jackie Holmberg, Alternate, Manager Ark Valley Electric Cooperative Assn., Inc. Ark Valley Electric Cooperative Assn., Inc. PRESIDENT Dale Short, Trustee, Manager Ron Oelkers, Alternate Dan Hubert, Trustee Allen Zadorozny, Alternate, Manager Butler Rural Electric Cooperative Assn., Inc. Butler Rural Electric Cooperative Assn., Inc. Caney Valley Electric Cooperative Assn., Inc. Caney Valley Electric Cooperative Assn., Inc. EXECUTIVE COMMITTEE SECRETARY Charles Goeckel, Trustee, Manager Terry Olsen, Alternate Steven Foss, Trustee, Manager Harlan Hunt, Alternate Flint Hills Rural Electric Cooperative Assn., Inc. Flint Hills Rural Electric Cooperative Assn., Inc. FreeState Electric Cooperative, Inc. FreeState Electric Cooperative, Inc. Paul Unruh, Trustee Teresa Miller, Alternate, Manager William Peterson, Trustee Chuck Look, Alternate, Manager Ninnescah Rural Electric Cooperative Assn., Inc. Ninnescah Rural Electric Cooperative Assn., Inc. Prairie Land Electric Cooperative, Inc. Prairie Land Electric Cooperative, Inc. Donald Metzen, Trustee Scott Ayres, Alternate, Manager John Schon, Alternate Trustee Cletas Rains, Trustee, Manager Sedgwick County Electric Cooperative Assn., Inc. Sedgwick County Electric Cooperative Assn., Inc. Sumner-Cowley Electric Cooperative, Inc. Sumner-Cowley Electric Cooperative, Inc. 10

2 0 1 9 K E P Co B OA R D O F T R U ST E E S EXECUTIVE COMMITTEE Michael Morton, Trustee, Manager Gary Buss, Alternate Kevin Compton, Trustee Jim Currie, Alternate, Manager Bluestem Electric Cooperative, Inc. Bluestem Electric Cooperative, Inc. Brown-Atchison Electric Cooperative Assn., Inc. Brown-Atchison Electric Cooperative Assn., Inc. EXECUTIVE COMMITTEE TREASURER Kirk Thompson, Trustee, Manager Linda Tomlinson, Alternate Dean Allison, Trustee Tim Power, Alternate, Manager CMS Electric Cooperative, Inc. CMS Electric Cooperative, Inc. DS&O Electric Cooperative, Inc. DS&O Electric Cooperative, Inc. Mark Scheibe, Trustee, Manager H.H. Stockebrand, Alternate Dennis Svanes, Trustee, Manager Robert Converse, Alternate Heartland Rural Electric Cooperative, Inc. Heartland Rural Electric Cooperative, Inc. Lyon-Coffey Electric Cooperative, Inc. Lyon-Coffey Electric Cooperative, Inc. VICE PRESIDENT Tom Ayers, Trustee Dennis Duft, Alternate, Manager Douglas Jackson, Trustee, Manager Paul Wilson, Alternate Radiant Electric Cooperative, Inc. Radiant Electric Cooperative, Inc. Rolling Hills Electric Cooperative, Inc. Rolling Hills Electric Cooperative, Inc. Bryan Coover, Trustee Angie Erickson, Alternate, Manager Shane Laws, Trustee, Manager Daryl Tieben, Alternate Twin Valley Electric Cooperative, Inc. Twin Valley Electric Cooperative, Inc. Victory Electric Cooperative Assn., Inc. Victory Electric Cooperative Assn., Inc. 11

COMMUNITY ENGAGEMENT Both KEPCo and its employees value engagement items, cookware, in our communities and historically have been cleaning supplies, involved in a wide variety of community projects. toiletries, and card From coaching and refereeing youth sports, games, as well as to volunteering at charitable organizations cleaned inside and and donating financial resources, KEPCo and outside the house. its employees understand the importance of KEPCo staff service. As a member services organization, KEPCo chose the Ronald constantly strives for excellence in carrying out its McDonald House core mission to provide safe, reliable, economical, as a volunteer and environmentally responsible power supply, opportunity as a as well as exceptional support and service to its way to give back members and the Kansans they serve. That same to an organization mindset is carried out by KEPCos employees as that has provided From left: Susan Cunninghams children, we contribute our time, talents, and resources to valuable resources Ryan and Paige, Kelsey Schrempp, and Chris serve the communities where we work and live. to families of Davidson, participated in the Kansas Turkey Trot for Heroes 5K Charity Run held at the KEPCo staff. Combat Air Museum in Topeka. KEPCo Staff Participates in National Trails Day On June 1, 2019, KEPCo staff participated in the Kansas Turkey Trot for Heroes American Hiking Society National Trails Day, which Bright and early on a cold and rainy Thanksgiving is a day of public events aimed at advocacy and morning, Chris Davidson, Kelsey Schrempp, and trail service. On this day, thousands of advocates Susan Cunninghams children, Paige and Ryan, came together nationwide to maintain and participated in the Kansas Turkey Trot for Heroes clean-up public lands and trails. KEPCo staff hiked 5K Charity Run held at the Combat Air Museum in two miles on the Shunga Trail. Special thanks to Topeka. The run was held to raise funds for Sheep KEPCos John Payne for organizing the event. Dog Impact Assistance, a national non-profit organization that exists to engage, assist, and KEPCo Volunteers at Ronald McDonald House empower the men and women who make up our On July 22, 2019, several members of the KEPCo nations military, law enforcement, fire and rescue, staff and their family members volunteered at and EMS professions. Team KEPCo signed up for the Topeka Ronald McDonald House. KEPCo staff the Wild Gobbler event, which included the 3.1-prepared a wonderful meal and donated food mile run plus five different additional workouts along the route, with each workout station honoring the sacrifice of a different military or first responder. KEPCo Donates to Local and Regional Charities Through KEPCos Charitable Giving Program, KEPCo and KEPCo staff donated nearly $18,000 to local and regional charities in 2019. These charities perform a valuable service in our communities and KEPCo is proud to support their efforts. In addition to the monetary contributions provided to KEPCo staff s selected charities, staff also held a food drive in December 2019 for the Boys and Girls Club and donated a large quantity Suzanne Lanes daughter, Paxton, and Shari Koch performed yard of food items that were enjoyed and appreciated work at Ronald McDonald House. by club members in Topeka. 12

2 0 1 9 A N N U A L R E P O RT KEPCO SERVICES, INC. KEPCo Services, Inc. (KSI), a wholly owned subsidiary of KEPCo, completed its 22nd year of operations. KSI offers a wide range of technical and engineering services to member and non-member cooperatives requiring engineering support. KSIs purpose is to provide value-added engineering services while creatively finding solutions that facilitate the goals and objectives of its clients. KSI places paramount importance on integrity, transparency, innovation, service, and commitment to excellence. The staff of KSI was involved in over 53 projects for 15 KEPCo members and one non-member throughout the year. Of particular note, KSI provided technical support and project management for the CMS Electric Cooperative, Inc. Winter Storm Jupiter mitigation project. The project commenced in the fourth quarter of 2019 and will carry through 2020. KSIs role will be to act as the owners engineer. Activities accomplished for the project in 2019 included securing engineering, procurement, and construction contracts. Additionally, 2019 was a year of transition that saw longtime KSI head Mark Barbee transition into his role as senior vice president, engineering and operations, with the hiring of Rick Johnson as executive director, engineering, who assumed Barbees role over KSI. As the organization transitions into the future, KSI is evaluating a variety of modi"cations to its existing service offerings and additional services that will help clients manage their costs through engineering solutions. A description of KSIs current services is available on KEPCos website. USDA RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM The rural revitalization initiatives undertaken in Kansas throughout 2019 complement and augment KEPCos storied economic development efforts. Since 1991, KEPCo has been an active participant in the USDA Rural Economic Development Loan and Grant (REDLG) program. By partnering with our members to promote and utilize the program, over $40 million in REDLG program funds have been brought into rural Kansas and more than 1,200 jobs have either been created or saved. In 2019 alone, if all the projects submitted to USDA are approved, over Throughout 2019, KEPCo and its member $2.5 million of REDLG Rolling Hills Electric Cooperative, Inc. worked to secure USDA REDLG program funds will be funding to provide crucial plumbing used to create nearly 50 infrastructure improvements at the new jobs in rural Kansas. Osborne preK-12 school. 13

INDEPENDENT AUDITORS REPORT We have audited the accompanying consolidated financial statements of Kansas Electric Power Cooperative, Inc. and its wholly owned subsidiary (KEPCo), which comprise the consolidated balance sheet as of December 31, 2019, and the related consolidated statements of margin and comprehensive income, patronage capital and cash flows for the year then ended, and the related notes to the consolidated financial statements. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Unites States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entitys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of KEPCo as of December 31, 2019, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Prior Year Audited by Other Auditors The 2018 consolidated financial statements were audited by other auditors, and their report thereon, dated April 15, 2019, expressed an unmodified opinion. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we also have issued our report dated April 8, 2020, on our consideration of KEPCos internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of KEPCos internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering KEPCos internal control over financial reporting and compliance. OKLAHOMA CITY, OKLAHOMA APRIL 8, 2020 Continued on next page 14 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued KEPCo & SUBSIDIARY CONSOLIDATED BALANCE SHEETS Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 15

Continued Continued on next page 16 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued KEPCo & SUBSIDIARY CONSOLIDATED STATEMENTS OF MARGIN & COMPREHENSIVE INCOME DECEMBER 31, 2019 AND 2018 Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 17

Continued KEPCo & SUBSIDIARY CONSOLIDATED STATEMENTS OF PATRONAGE CAPITAL YEARS ENDED DECEMBER 31, 2019 AND 2018 Continued on next page 18 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued KEPCo & SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 19

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1: Nature of Operations and Summary of Signi"cant PRINCIPLES OF CONSOLIDATION Accounting Policies The accompanying consolidated financial statements include the accounts NATURE OF OPERATIONS of Kansas Electric Power Cooperative, Inc. and its wholly owned subsidiary, Kansas Electric Power Cooperative, Inc. and its wholly owned subsidiary (KEPCo), KEPCo Services, Inc. Undivided interests in jointly owned generation facilities are headquartered in Topeka, Kansas, was incorporated in 1975 as a tax-exempt consolidated on a pro rata basis. All material intercompany accounts and transactions generation and transmission cooperative (G&T). KEPCo was granted a limited have been eliminated in consolidation. certificate of convenience and authority by the Kansas Corporation Commission (KCC) in 1980 to act as a G&T public utility. It is KEPCos responsibility to procure an IATAN 2 adequate and reliable power supply for its 19 distribution rural electric cooperative Iatan 2 is an 850 MW high efficiency coal-fired power plant utilizing state-of-members pursuant to all requirements of contracts with its members. KEPCo the-art environmental controls that became commercially operational December is governed by a board of trustees representing each of its 19 members, which 31, 2010. KEPCo owns a 3.53% share of Iatan 2, or 30 MW. Iatan 2, located in collectively serve approximately 120,000 electric meters in rural Kansas. Weston, Missouri, is operated and majority owned by Evergy, Inc. KEPCos undivided interest in Iatan 2 is consolidated on a pro rata basis. KEPCo is entitled SYSTEM OF ACCOUNTS to a proportionate share of the capacity and energy from Iatan 2, which is used KEPCo maintains its accounting records substantially in accordance with the to supplement a portion of KEPCos members requirements. KEPCo is billed on a Federal Energy Regulatory Commissions (FERC) uniform system of accounts as daily basis for 3.53% of the operations, maintenance, administrative and general modified and adopted by the U.S. Department of Agriculture (USDA) Rural Utilities costs, and cost of plant additions related to Iatan 2. Each owner is responsible Service (RUS) and in accordance with accounting practices prescribed by the KCC. In for providing its own financing for all costs incurred at the plant. accordance with generally accepted accounting principles (GAAP) and FERC guidelines, KEPCos utility plant in service for its 3.53% share of Iatan 2 was approximately KEPCo also maintains its accounts in accordance with Financial Accounting Standards $82,600,000 and $82,100,000 with an allowance for depreciation of approximately Board (FASB) Accounting Standards Codification (ASC) 980, Regulated Operations. $19,000,000 and $17,000,000 and construction work in progress of approximately

                                                                                         $300,000 and $800,000 at December 31, 2019 and 2018, respectively.

RATES Under a 2009 change in Kansas law, KEPCo has elected to be exempt from KCC WOLF CREEK NUCLEAR OPERATING CORPORATION regulation for most purposes, including the setting of rates. Rates are set by action of KEPCo owns 6% of Wolf Creek Nuclear Operating Corporation (WCNOC), which the Board, subject only to statutory review by the KCC if requested by four or more is located near Burlington, Kansas. The remainder is owned by Evergy, Inc. KEPCos members. KEPCos rates were last set by the KCC by an order effective September undivided interest in WCNOC is consolidated on a pro rata basis. KEPCo is entitled 1, 2008. KEPCos rates now include an Energy Cost Adjustment (ECA) mechanism to a proportionate share of the capacity and energy from WCNOC, which is used to and an annual Demand Cost Adjustment (DCA) mechanism allowing KEPCo to pass supplement a portion of KEPCos members requirements. KEPCo is billed on a daily along increases and decreases in certain energy and demand costs to its member basis for 6% of the operations, maintenance, administrative and general costs, and cooperatives. Additionally, KEPCo implemented a Margin Stabilization Adjustment cost of plant additions related to WCNOC. Each owner is responsible for providing its (MSA) in 2011, which is a mechanism to refund (or collect) a portion of KEPCos margin own financing for all costs incurred at the plant. when the total margin exceeds (or falls short of) the amount necessary to cover KEPCos utility plant in service for its 6% share of WCNOC was approximately KEPCos financial obligations. $269,500,000 and $263,100,000 with an allowance for depreciation of approximately

                                                                                         $149,100,000 and $143,500,000 and construction work in progress of approximately Continued on next page 20                                            S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS $8,100,000 and $10,100,000 at December 31, 2019 and 2018, respectively. shutdown of a nuclear power plant and the removal of radioactive components WCNOCs operating license expires in 2045. WCNOC is regulated by the in accordance with NRC requirements. The NRC will terminate a plants license and Nuclear Regulatory Commission (NRC) with respect to licensing, operations and release the property for unrestricted use when a company has reduced the residual safety-related requirements. radioactivity of a nuclear plant to a level mandated by the NRC. The NRC requires WCNOC disposes of all classes of its low-level radioactive waste at existing third- companies with nuclear plants to prepare formal financial plans to fund nuclear party repositories. Should disposal capability become unavailable, WCNOC is able to decommissioning. These plans are designed so that sufficient funds required for store its low-level radioactive waste in an on-site facility for up to three years under nuclear decommissioning will be accumulated prior to the expiration of the license current regulations. of the related nuclear power plant. WCNOC files a nuclear decommissioning site study with the KCC every three years. The KCC reviews nuclear decommissioning plans in two phases. Phase one is the ESTIMATES approval of the revised nuclear decommissioning study, including the estimated costs The preparation of consolidated financial statements in conformity with GAAP to decommission the plant. Phase two involves the review and approval of a funding requires management to make estimates and assumptions that affect the reported schedule prepared by the owner of the plant detailing how it plans to fund the amounts of assets and liabilities and disclosure of contingent assets and liabilities future-year dollar amount of its pro rata share of the decommissioning costs. at the date of the consolidated financial statements and the reported amounts of In 2017, the triennial nuclear decommissioning study was revised. Based on revenues and expenses during the reporting period. Actual results could differ from the study, KEPCos share of decommissioning costs, including decontamination, those estimates. dismantling and site restoration, is estimated to be approximately $65,600,000. This amount does not compare to the prior site study estimate of $45,900,000 UTILITY PLANT AND DEPRECIATION due to a KCC order requiring a new method of calculating the decommissioning Utility plant is stated at cost. Costs and additions to utility plant include costs. The new method, called SAFSTOR, requires long-term storage of spent contractual work, direct labor, materials and interest on funds used during fuel on-site for 60 years after the plant is decommissioned. The site study cost construction. No interest has been capitalized in 2019 or 2018. The costs of repairs estimate represents the estimate to decommission WCNOC as of the site study and minor replacements are charged to operating expenses as appropriate. The year. The actual nuclear decommissioning costs may vary from the estimates original cost of utility plant retired and the cost of removal less salvage are charged because of changes in regulations and technologies as well as changes in costs to accumulated depreciation. for labor, materials and equipment. The composite depreciation rate for electric generation plant for the years ended KEPCo is allowed to recover nuclear decommissioning costs in its prices over a December 31, 2019 and 2018, is 4.45% and 4.26%, respectively. period equal to the operating license of WCNOC, which is through 2045. The NRC The provision for depreciation computed on a straight-line basis for electric and requires that funds sufficient to meet nuclear decommissioning obligations be held other components of utility plant is as follows: in a trust. KEPCo believes that the KCC approved funding level will also be sufficient Transportation and equipment 25-33 years to meet the NRC requirement. The consolidated financial results would be materially Office furniture and fixtures 10-20 years affected if KEPCo was not allowed to recover in its prices the full amount of the Leasehold improvements 20 years funding requirement. Transmission equipment (metering, communication and SCADA) 10 years KEPCo recovered in its prices and deposited in an external trust fund for nuclear decommissioning approximately $544,000 and $508,000 in 2019 and 2018, LONG-LIVED ASSET IMPAIRMENT respectively. KEPCo records its investment in the nuclear decommissioning trust KEPCo evaluates the recoverability of the carrying value of long-lived assets (NDT) at fair value, which approximated $30,527,000 and $25,000,000 at December 31, whenever events or circumstances indicate the carrying amount may not be 2019 and 2018, respectively. The change in the fair value of investments in the NDT recoverable. If a long-lived asset is tested for recoverability and the undiscounted was approximately $4,245,000 and $(2,408,000) for the years ended December 31, estimated future cash "ows expected to result from the use and eventual disposition 2019 and 2018, respectively, and is included in WCNOC decommissioning regulatory of the asset are less than the carrying amount of the asset, the asset cost is adjusted liability on the accompanying consolidated balance sheets. to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. ASSET RETIREMENT OBLIGATION No asset impairment was recognized during the years ended December 31, 2019 KEPCo recognizes and estimates the legal obligation associated with the cost to and 2018. decommission WCNOC. KEPCo initially recognized an asset retirement obligation at fair value for the estimated cost with a corresponding amount capitalized as part of NUCLEAR FUEL the cost of the related long-lived asset and depreciated over the useful life. The cost of nuclear fuel in the process of refinement, conversion, enrichment A reconciliation of the asset retirement obligation for the years ended December and fabrication is recorded as a utility plant asset at original cost and is amortized to 31 is as follows: nuclear fuel expenses based upon the quantity of heat produced for the generation of electric power. NUCLEAR DECOMMISSIONING Nuclear decommissioning is a nuclear industry term for the permanent Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 21

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Any net margin effects are deferred in the WCNOC decommissioning regulatory investments are payable back to the member upon demand or can be used to pay liability and will be collected from or returned to members in future electric rates the balance due on the members power bill. CASH AND CASH EQUIVALENTS REVENUE RECOGNITION KEPCo considers all highly liquid investments purchased with an original maturity Revenue is recognized when control of the promised goods or services is of three months or less are considered to be cash equivalents and are stated at transferred to KEPCos members or customers in an amount that re"ects the cost, which approximates fair value. At December 31, 2019 and 2018, cash equivalents consideration that it expects to be entitled to in exchange for those goods or consisted primarily of a repurchase agreement and commercial paper. services. The amount and timing of revenue recognition varies based on the nature KEPCo has invested $19,000,000 and $11,800,000 in National Rural Utilities of the goods or services provided and the terms and conditions of the customer Cooperative Finance Corporation (NRUCFC), a related party, commercial paper at contract. See Note 7 for additional information about KEPCos revenue. December 31, 2019 and 2018, respectively. The commercial paper is exposed to credit risk and is not federally insured. KEPCos repurchase agreement has collateral pledged by a financial institution, INCOME TAXES As a tax-exempt cooperative, Kansas Electric Power Cooperative, Inc., is exempt which is securities that are backed by the federal government. from income taxes under Section 501(c)(12) of the Internal Revenue Code of 1986, as amended. Accordingly, provisions for income taxes have not been re"ected in the ACCOUNTS RECEIVABLE accompanying consolidated financial statements. Accounts receivable are stated at the amount billed to members and customers. KEPCo Services, Inc., a subsidiary of Kansas Electric Power Cooperative, Inc., is not KEPCo provides allowances for doubtful accounts, which are based upon a review exempt from income taxes. of outstanding receivables, historical collection information and existing economic conditions. No allowance was recorded at December 31, 2019 or 2018. Accounts receivable are stated at the amount of consideration from members EQUITY INVESTMENTS KEPCo measures equity securities, other than investments that qualify for the and customers, of which KEPCo has an unconditional right to receive. KEPCo provides equity method of accounting, at fair value with changes recognized in net margin. an allowance for doubtful accounts, which is based upon a review of outstanding Under ASC 980, KEPCo has elected to defer changes to all unrealized gains and losses receivables, historical collection information and existing economic conditions. of equity investments with readily determined fair market values. Gains and losses Accounts receivable are ordinarily due 15 days after the issuance of the invoice. on the sale of securities are recorded on the trade date and are determined using the Delinquent receivables are written off based on individual credit evaluation and specific identification method. specific circumstances of the member or customer. Equity securities and equity investments without a readily determinable fair value During the years ended December 31, 2019 and 2018, there were no impairment are measured at cost, minus impairment, if any, plus or minus changes resulting from losses on doubtful accounts receivable where collectibility is not reasonably assured. observable price changes for the identical or a similar investment. For equity securities and equity investments measured under the practicability MATERIALS AND SUPPLIES INVENTORY exception, KEPCo performs a qualitative assessment for equity investments without Materials and supplies inventory are valued at average cost. readily determinable fair values considering impairment indicators to evaluate whether an impairment exists. If an impairment exists, KEPCo will recognize a loss based on the difference between carrying value and fair value. CASH SURRENDER VALUE OF LIFE INSURANCE CONTRACTS The following amounts related to WCNOC corporate-owned life insurance INVESTMENTS IN ASSOCIATED ORGANIZATIONS contracts, primarily with one highly rated major insurance company, are included in AND NRUCFC other long-term assets in the accompanying consolidated balance sheets: KEPCo has equity ownership in the form of patronage capital through various lenders and other associated organizations (see Note 3). Patronage capital equity is increased as patronage is allocated to KEPCo and decreased as patronage is retired and cash received. These investments are considered equity investments without readily determinable fair values and are accounted for at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment. No impairment or observable price changes were Borrowings against contracts include a prepaid interest charge. KEPCo pays recorded during 2019 and 2018. interest on these borrowings at a rate of 5.00% for the years ended December 31, 2019 and 2018. WCNOC DISALLOWED COSTS Effective October 1, 1985, the KCC issued a rate order relating to KEPCos MEMBER INVESTMENTS investment in WCNOC, which disallowed $26,000,000 of KEPCos investment in KEPCo has a member investment program whereby members can invest funds with KEPCo. KEPCo pays interest on the balance of these funds. The member Continued on next page 22 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WCNOC. A subsequent rate order, effective February 1, 1987, allows KEPCo to recover CHANGES IN ACCOUNTING PRINCIPLES these disallowed costs and other costs related to the disallowed portion (recorded as deferred charges) for the period from September 3, 1985 through January 31, 1987, ACCOUNTING STANDARDS UPDATE (ASU) 2014-09, REVENUE FROM over a 27.736-year period starting February 1, 1987. Pursuant to a KCC rate order dated CONTRACTS WITH CUSTOMERS (TOPIC 606) December 30, 1998, the disallowed portions recovery period was extended to a 30- In May 2014, FASB issued guidance, Topic 606, that provides a five-step analysis year period. The disallowed costs are being recovered through the use of straight-line of contracts to determine when and how revenue is recognized and replaces most amortization over the period required by the KCC. existing revenue recognition guidance. The core principle of the new guidance is that an entity should recognize revenue to re"ect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to COMPREHENSIVE INCOME receive. KEPCo adopted Topic 606 with a date of initial application of January 1, 2019 Comprehensive income consists of net margin and other comprehensive income (see Note 7). (loss). Other comprehensive income (loss) includes changes in the funded status of the WCNOC pension and postretirement plans (see Note 8). ASU 2016-01, FINANCIAL INSTRUMENTS - OVERALL (SUBTOPIC 825-10): RECOGNITION AND MEASUREMENT OF FINANCIAL ASSETS AND REVISIONS FINANCIAL LIABILITIES Certain immaterial revisions have been made to the 2018 consolidated financial In January 2016, FASB issued ASU 2016-01, which amends guidance related to statements. These revisions did not have a significant impact on the consolidated certain aspects of the recognition, measurement, presentation and disclosure financial statement line items impacted and did not impact previously reported of financial instruments. This update is effective for fiscal years beginning after comprehensive income. Following is a summary of revisions made to the 2018 December 15, 2018, and interim periods within those years, with early adoption consolidated financial statements: not permitted with certain exceptions. KEPCo began application of ASU 2016-01 on January 1, 2019. Adoption of ASU 2016-01 did not have a material effect on the results of KEPCos operations, financial position and cash "ows. ASU 2017-07, COMPENSATION

                                                                                                                                           - RETIREMENT BENEFITS (TOPIC 715), IMPROVING THE PRESENTATION OF NET PERIODIC PENSION COST AND NET PERIODIC POSTRETIREMENT BENEFIT COST In 2019, KEPCo changed its method of accounting for defined benefit pension plans, other postretirement plans and other retirement benefits accounted for under Topic 715, Compensation -

Retirement Benefits, by adopting ASU 2017-07. The new accounting guidance in ASU 2017-07 improves the presentation of net periodic postretirement benefit costs by requiring employers to report the service cost component of net periodic postretirement benefit cost in the same financial statement line as other employee compensation costs arising from the pertinent employees during the period. ASU 2017-07 also Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 23

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS allows for capitalization of only the service cost component of net periodic the incremental operating, maintenance and replacement power costs associated postretirement benefit costs, if applicable. Other components of benefit costs with the periodic refueling of WCNOC. Operating and maintenance costs are being are prohibited from capitalization as part of an asset. The impact of adopting ASU amortized over the approximate 18-month operating cycle coinciding with the 2017-07 resulted in KEPCo reclassifying $669,479 and $665,746 in postretirement recognition of the related revenues. Additions to the deferred incremental outage benefit costs from administrative and general expenses to other expenses for the costs were approximately $2,200,000 and $2,300,000 in 2019 and 2018, respectively. years ended December 31, 2019 and 2018, respectively. The current year amortization of the deferred incremental outage costs was approximately $1,600,000 and $1,700,000 for the years ended December 31, 2019 and Note 2: Factors that Could Affect Future Operating Results 2018, respectively. KEPCo currently applies accounting standards that recognize the economic effects of rate regulation and, accordingly, has recorded regulatory assets and liabilities SOUTHWEST POWER POOL CHARGES related to its G&T operations in accordance with ASC 980, Regulated Operations. During 2016, KEPCo was assessed historical charges in the amount of In the event KEPCo determines that it no longer meets the criteria of ASC 980, approximately $2,442,000 from Southwest Power Pool related to a Z2 billing the accounting impact could be a noncash charge to operations in an amount that issue for generation system upgrades from 2008 through 2016. The total amount would be material. Criteria that could give rise to the discontinuance of ASC 980 of historical charges was paid in October 2016 and will be amortized over a include: 1) increasing competition that restricts KEPCos ability to establish prices to five-year period ending October 2021. The balance as of December 31, 2019 and recover specific costs and 2) a significant change in the manner in which rates are 2018, was approximately $900,000 and $1,300,000, respectively. Accumulated set by regulators from a cost-based regulation to another form of regulation. KEPCo amortization as of December 31, 2019 and 2018, was approximately $1,500,000 periodically reviews these criteria to ensure the continuing application of ASC 980 is and $1,100,000, respectively. appropriate. Any changes that would require KEPCo to discontinue the application of ASC 980 due to increased competition, regulatory changes or other events may Note 5: Lines of Credit significantly impact the valuation of KEPCos investment in utility plant, WCNOC and At December 31, 2019 and 2018, KEPCo has a $10,000,000 line of credit available Iatan 2 and necessitate the write-off of regulatory assets. At this time, the effect of with CoBank, ACB. There were no funds borrowed against the line of credit at competition and the amount of regulatory assets that could be recovered in such an December 31, 2019 or 2018. Interest rate options, as selected by KEPCo, are a weekly environment cannot be predicted. quoted variable rate in which CoBank establishes a rate on the first business day of The 1992 Energy Policy Act began the process of restructuring the United States each week or a London InterBank Offered Rate (LIBOR) option at a fixed rate equal electric utility industry by permitting FERC to order electric utilities to allow third to LIBOR plus 1.6%. This line of credit expires January 2020 and was subsequently parties to sell electric power to wholesale customers over their transmission systems. renewed through January 2021 and is secured by substantially all of KEPCos assets. KEPCo has elected to deregulate its ratemaking for sales to its members under recent KEPCo has available from the NRUCFC two lines of credit available from the statutory amendments. NRUCFC totaling $20,000,000, of which no funds were borrowed against at Subject to the possibility of KCC review, KEPCos member rates are now set December 31, 2019 and 2018. One line is for $10,000,000 and matures March 2020. by action of the Board. KEPCos ability to timely recover its costs is enhanced by Interest varies as determined by the lender and was 3.25% and 3.75% at December this change. 31, 2019 and 2018, respectively. The line requires an annual paydown of the line or it becomes immediately callable at the discretion of the NRUCFC. The other line is for Note 3: Investments in Associated Organizations $10,000,000 and matures December 2049. Interest varies as determined by the lender At December 31, investments in associated organizations consisted of the and was 2.85% and 4.00% at December 31, 2019 and 2018, respectively. The lines are following: collateralized by substantially all of KEPCos assets. Note 6: Long-Term Debt Long-term debt consists of mortgage notes payable to the United States of America acting through the FFB, NRUCFC and others. Substantially all of KEPCos assets are pledged as collateral. The terms of the notes as of December 31 are as follows: (A) KEPCo is required to maintain these investments pursuant to certain loan agreements. Note 4: Deferred Charges DEFERRED INCREMENTAL OUTAGE COSTS In 1991, the KCC issued an order that allowed KEPCo to defer its 6% share of Continued on next page 24 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (A) RUS cushion of credit funds are required to be applied to the debt service territories in Kansas. requirements of the FFB mortgage notes payable and are, therefore, re"ected net Rates charged for electric power sales to members are established at least in the related balances in the accompanying consolidated balance sheets. The annually by the Board. KEPCo provides energy and demand to members as one RUS cushion of credit is offered by the USDA and earns interest annually at a rate stand-ready performance obligation. Electric power revenue is recognized by KEPCo approved by the USDA. upon transfer of control of the promised services to members in an amount that KEPCo has approximately $21,493,000 of unadvanced loan funds with the FFB as of re"ects the consideration KEPCo expects to receive in exchange for those services. December 31, 2019. KEPCo transfers control of the electric power to members at each members meter Aggregate maturities of long-term debt are as follows: point and the members simultaneously receive and consume the benefits of the energy provided. Electric power provided to members is accounted for as a series of performance obligations. Progress toward completion is measured using the output method. Meter readings are taken at the end of each month for billing purposes, and the quantity of energy transferred is determined after the meter readings. Customers are billed monthly and KEPCo accrues for unbilled amounts. Payments from members are received in accordance with each members contract, which is less than 30 days from the invoice date. Revenue associated with the electric power performance obligation to members is recorded as sales of electric energy in the accompanying consolidated statements of margin and comprehensive income. Restrictive covenants related to the NRUCFC and FFB debt require KEPCo to KEPCo has determined that the nature, amount, timing and uncertainty of revenue design rates that would enable it to maintain a times-interest earned ratio of at least and cash "ows are not materially affected by any factors, such as the geography of 1.05 and debt service coverage ratio of at least 1.0, on average, in the two best years the service location, customer type or service line. out of the three most recent calendar years. The covenants also prohibit distribution of net patronage capital or margins until, after giving effect to any such distribution, total patronage capital equals or exceeds 20% of total assets, unless such distribution ACCOUNTING POLICIES AND PRACTICAL is approved by the RUS or NRUCFC. KEPCo was in compliance with such restrictive EXPEDIENTS ELECTED covenants as of December 31, 2019 and 2018. KEPCo has applied an accounting policy election that allows an entity to exclude Restrictive covenants related to CoBank debt require KEPCo to design rates that from revenue any amounts collected from customers on behalf of third parties, would enable it to maintain a debt service coverage ratio, as defined by CoBank, of such as sales taxes and other similar taxes KEPCo collects concurrent with revenue-at least 1.10. KEPCo was in compliance with the restrictive covenants as of December producing activities. Therefore, revenue is presented net of sales taxes and similar 31, 2019 and 2018. revenue-based taxes. KEPCo has also elected to use the right to invoice practical expedient. This practical expedient allows an entity to recognize revenue in the amount of Note 7: Revenue from Contracts with Customers consideration to which the entity has the right to invoice when the amount that In 2019, KEPCo changed its accounting policy on revenue recognition by adopting the entity has the right to invoice corresponds directly to the value transferred the provisions of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to the customer. that replaces existing revenue recognition guidance. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods Note 8: Bene"t Plans or services to customers in an amount that re"ects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION Topic 606 requires disclosures of the nature, amount, timing and uncertainty of (NRECA) RETIREMENT AND SECURITY PROGRAM revenue and cash "ows arising from contracts with customers. KEPCo participates in the NRECA Retirement and Security Program (RS Plan) for KEPCo adopted this standard on January 1, 2019, using a modified retrospective its employees. The NRECA RS Plan is a defined benefit pension plan qualified under approach with the cumulative effect of initially applying the new standard recognized Section 401 and tax-exempt under Section 501(a) of the Internal Revenue Code. It is in patronage capital at the beginning of the year of adoption. There was not an a multi-employer plan under the accounting standards. The plan sponsors Employer adjustment to beginning patronage capital as a result of adoption of Topic 606. Identification Number is 53-0116145 and the Plan Number is 333. Comparative prior period information has not been adjusted and continues to be A unique characteristic of a multi-employer plan compared to a single-employer reported in accordance with previous revenue recognition guidance in ASC 605, plan is that all plan assets are available to pay benefits of any plan participant. Revenue Recognition. KEPCo has applied the new standard to all contracts not Separate asset accounts are not maintained for participating employers. This means complete at the date of adoption. that assets contributed by one employer may be used to provide benefits to KEPCos adoption of Topic 606 did not result in a change to the timing of employees of other participating employers. revenue recognition. KEPCos contributions to the NRECA RS Plan in 2019 and 2018 represented less than 5% of the total contributions made to the plan by all participating employers. KEPCo made contributions to the NRECA RS Plan of approximately $470,000 and $450,000 PERFORMANCE OBLIGATIONS - OPERATING REVENUES for the years ended December 31, 2019 and 2018, respectively. There have been no The majority of KEPCos revenues are derived primarily from the sale of electric power to members. Members consist of distribution cooperatives within dedicated Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 25

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS significant changes that affect the comparability of 2019 and 2018 contributions. factors may have an impact on the differential in billing rates and the 15-year period. For the NRECA RS Plan, a zone status determination is not required, and thus KEPCo participated in the prepayment program and is amortizing the $1,314,273 over a not determined, under the Pension Protection Act (PPA) of 2006. In addition, the 10-year period through 2023. This balance is included in prepaid pension cost in other accumulated benefit obligations and plan assets are not determined or allocated long-term assets on the accompanying consolidated balance sheets. separately by individual employer. In total, the NRECA RS Plan was more than 80% funded at January 1, 2019 and 2018, based on the PPA funding target and PPA actuarial value of assets on those dates. NRECA SAVINGS 401(K) PLAN All employees of KEPCo are eligible to participate in the NRECA Savings 401(k) Because the provisions of the PPA do not apply to the NRECA RS Plan, funding Plan. Under the plan, KEPCo contributes an amount not to exceed 5%, dependent improvement plans and surcharges are not applicable. Future contribution upon each employees level of participation and completion of one year of service, requirements are determined each year as part of the actuarial valuation of the plan of the respective employees base pay to provide additional retirement benefits. and may change as a result of plan experience. KEPCo contributed approximately $121,000 and $110,000 to the NRECA Savings 401(k) In 2012, NRECA approved an option to allow participating cooperatives in the Plan for the years ended December 31, 2019 and 2018, respectively. NRECA RS Plan to make a contribution prepayment and reduce future required contributions. The prepayment amount is a cooperatives share, as of January 1, 2013, of future contributions required to fund the NRECA RS Plans unfunded value of WCNOC PENSION AND POSTRETIREMENT PLANS benefits earned to date using NRECA RS Plan actuarial valuation assumptions. The KEPCo has an obligation to the WCNOC retirement plan, supplemental retirement prepayment amount will typically equal approximately 2.5 times a cooperatives plan and postretirement medical plan (collectively, the Plans) for its 6% ownership annual NRECA RS Plan required contribution as of January 1, 2013. After making the interest in WCNOC. The Plans provide for benefits upon retirement, normally at age prepayment, for most cooperatives, the billing rate is reduced by approximately 25%, 65. In accordance with the Employee Retirement Income Security Act of 1974, KEPCo retroactive to January 1 of the year in which the amount is paid to the NRECA RS has satisfied its minimum funding requirements. Benefits under the Plans re"ect the Plan. The 25% differential in billing rates is expected to continue for approximately employees compensation, years of service and age at retirement. 15 years from January 1, 2013. However, changes in interest rates, asset returns and WCNOC uses a measurement date of December 31 for the Plans. other plan experiences different from expected; plan assumption changes; and other Information about KEPCos 6% share of the Plans funded status follows: Continued on next page 26 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Amounts recognized in accumulated other comprehensive loss not yet recognized as components of net periodic benefit costs consist of: 2019 WCNOC uses a measurement date of December 31 for its pension and postretirement benefit plans. The discount rate to determine the current year pension obligation and the following years pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality, non-callable corporate bonds that generate a sufficient cash "ow to provide for the projected benefit payments of the plan. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plans projected benefit payments discounted at this rate with the market value of the bonds selected. Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 27

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KEPCo estimates it will amortize the following amounts into net periodic benefit costs in 2020: The expected long-term rate of return on plant assets is based on historical and projected rates of return for current and planned asset classes in the plans investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing long-term historical experience and future expectations of the volatility of the various asset classes. Based on target asset allocations for each asset class, the overall expected rate of return for the portfolios was developed, adjusted for historical and expected experience of active portfolio management results compared to benchmark returns and for the effect of expenses paid from plan assets. For measurement purposes, the assumed annual health care cost trend rates were as follows: The health care cost trend rate affects the projected benefit obligation A 1% change in assumed health care cost trend rates would have effects shown in the following table. WCNOCs pension and postretirement plan investment strategy is to manage assets in a prudent manner with regard to preserving principal while providing reasonable returns. It has adopted a long-term investment horizon such that the chances and duration of investment losses are carefully weighed against the long-term potential for appreciation of assets. Part of its strategy includes managing interest rate sensitivity of plan assets relative to the associated liabilities. The primary objective of the pension plan is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objective of the plan is to improve its funded status. The primary objective of the postretirement benefit plan is growth in assets and preservation of principal, while minimizing interim volatility, to meet anticipated claims of plan participants. WCNOC delegates the management of its pension and postretirement benefit plan assets to independent investment advisors who hire and dismiss investment managers based upon various factors. The investment advisors are instructed to diversify investments across asset classes, sectors and manager styles to minimize the risk of large losses, based upon objectives and risk tolerance specified by WCNOC, which include allowable and/or prohibited investment types. It measures and monitors investment risk on an ongoing basis through quarterly investment portfolio reviews and annual liability measurements. The target allocations for WCNOCs pension plan assets are 31% to international equity securities, 25% to domestic equity securities, 25% to debt securities, 10% to real estate securities, 5% to commodity investments and 4% to other investments. The investments in both international and domestic equity include investments in large-, mid- and small-cap companies and investment funds with underlying investments similar to those previously mentioned. The investments in debt include core and high-yield bonds. Core bonds include funds invested in investment grade debt securities of corporate entities, obligations of U.S. and foreign governments and their agencies and rivate debt securities. High-yield bonds include a fund with underlying investments in noninvestment grade debt securities of corporate entities, private placements and bank Continued on next page 28 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS debt. Real estate securities include funds invested in commercial and residential real estate properties while commodity investments include funds invested in commodity-related instruments. PENSION PLAN ASSETS All of WCNOCs pension plan assets are recorded at fair value using daily net asset values as reported by the trustee. Similar to other assets measured at fair value, GAAP establishes a hierarchal framework for disclosing the transparency of the inputs utilized in measuring pension and postretirement benefit lan assets at fair value. From time to time, the WCNOC pension trust may buy and sell investments resulting in changes within the hierarchy. Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets include cash equivalents. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash "ows. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. Significant inputs and valuation techniques used in measuring Level 3 fair values include market discount rates, projected cash "ows and the estimated value into perpetuity. Investments that do not have a readily determinable fair value are measured at net asset value (NAV). These investments do not consider the observability of inputs; therefore, they are not included within the fair value hierarchy. WCNOC includes investments in private equity, real estate and alternative investmetn funds that do not have a readily determinable fair value in this category. The underlying alternative investments include collarteralized debt obligations, mezzanine debt and a variety of other investments. The following table provides the fair value of KEPCos 6% share of WCNOCs pension plan assets and the corresponding level within the fair hierarchy as of December 31: Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 29

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 9: Commitments and Contingencies DECOMMISSIONING INSURANCES CURRENT ECONOMIC CONDITIONS KEPCo carries premature decommissioning insurance that has several restrictions, KEPCo considers current economic conditions when planning for future power one of which can only be used if WCNOC incurs an accident exceeding $500.0 supply and liquidity needs. The current economic climate may also affect KEPCos million in expenses to safely stabilize the reactor, decontaminate the reactor and ability to obtain financing. reactor station site in accordance with a plan approved by the NRC and pay for on-Given the volatility of current economic conditions, the values of assets and site property damages. liabilities recorded in the accompanying consolidated financial statements could Once the NRC property rule requiring insurance proceeds to be used first change rapidly, resulting in material future adjustments that could negatively impact for stabilization and decontamination has been complied with, the premature KEPCos ability to meet debt covenants or maintain sufficient liquidity. Currently decommissioning coverage could pay for the decommissioning fund shortfall in the under state statutes, KEPCos rate-making is deregulated and, therefore, KEPCo event an accident at WCNOC exceeds $500.0 million in covered damages and causes expects to be able to recover any economic losses through future rates. WCNOC to be prematurely decommissioned. LETTER OF CREDIT NUCLEAR FUEL COMMITMENTS KEPCo has an open letter of credit with NRUCFC in the amount of $1,500,000 that KEPCo owns a 6% undivided interest in WCNOC and provides its own financing automatically renews every year. The letter of credit is intended to provide financial for costs incurred by WCNOC. KEPCos share of anticipated costs for ongoing nuclear security to Southwest Power Pool pursuant to its credit policy. fuel for WCNOC is estimated to be approximately $18,523,000 for the next five years. NUCLEAR LIABILITY INSURANCE COAL COMMITMENTS Pursuant to the Price-Anderson Act, liability insurance includes coverage KEPCo owns a 3.53% undivided interest in Iatan 2 and provides its own financing against public nuclear liability claims resulting from nuclear incidents to the for costs incurred by Iatan 2. KEPCos share of anticipated costs for ongoing coal fuel required limit of public liability, which is approximately $13.9 billion. This limit of for Iatan 2 is estimated to be approximately $15,034,000 for the next five years. liability consists of the maximum available commercial insurance of $0.4 billion, and the remaining $13.5 billion is provided through mandatory participation in PURCHASE POWER COMMITMENTS an industry-wide retrospective assessment program. Under this retrospective KEPCo has supply contracts with various utility companies to purchase power to assessment program, the owners of WCNOC are jointly and severally subject to supplement generation in given service areas. KEPCo has provided the Southwest an assessment of up to $137.6 million (KEPCos share is $8.30 million), payable at Power Pool a letter of credit to help ensure power is available if needed. no more than $20.5 million (KEPCos share is $1.2 million) per incident per year per reactor for any commercial U.S. nuclear reactor qualifying incident. Both the Note 10: Signi"cant Estimates and Concentrations total and yearly assessments are subject to an in"ationary adjustment based on GAAP requires disclosure of certain significant estimates and current vulnerabilities the Consumer Price Index and applicable premium taxes. In addition, Congress due to certain concentrations. Those matters include the following: could impose additional revenue-raising measures to pay claims. The owners of WCNOC carry nuclear accident decontamination liability, premature nuclear decommissioning liability and property damage insurance for LITIGATION WCNOC totaling approximately $2.8 billion (KEPCos share is $168.0 million). In KEPCo is subject to claims and lawsuits that arise primarily in the ordinary course the event of a nuclear accident, insurance proceeds must first be used for reactor of business. It is the opinion of management that the disposition or ultimate stabilization and site decontamination in accordance with a plan mandated by the resolution of such claims and lawsuits will not have an adverse effect on the NRC. The owners share of any remaining proceeds can be used to pay for property consolidated financial position, results of operations and cash "ows of KEPCo. damage or, if certain requirements are met, including decommissioning the plant, There is a provision in the WCNOC operating agreement whereby the owners toward a shortfall in the NDT. treat certain claims and losses arising out of the operations of WCNOC as a cost to The owners also carry additional insurance with Nuclear Electric Insurance Limited be borne by the owners separately (but not jointly) in proportion to their ownership (NEIL) to help cover costs of replacement power and other extra expenses incurred shares. Each of the owners has agreed to indemnify the others in such cases. during a prolonged outage resullting from accidental property damage at WCNOC. If significant losses were incurred at any of the nuclear plants insured under the NEIL DEFERRED COMPENSATION AGREEMENT policites, the owners may be subject to retrospective asscessments under the current The amount of annual expense accrued for deferred compensation is based policies of approximately $33.2 million (KEPCos share is $2.0 million) in 2019 and $37.4 on an estimate of the total amounts payable under the contract over the million (KEPCos share is $2.2 million) in 2018. lifetimes of the beneficiaries. Although KEPCo maintains various insurance policies to provide coverage for potential losses and liabilities resulting from an accident or an extended outage, KEPCos insurance coverage may not be adequate to cover the costs that could result ASSET RETIREMENT OBLIGATION As described in Note 1, KEPCo has recorded a liability for its conditional asset from a catastrophic accident or extended outage at WCNOC. Any substantial losses retirement obligation related to the WCNOC plant decommissioning costs. not covered by insurance, to the extent not recoverable in KEPCos prices, would have a material effect on KEPCos consolidated financial results. Continued on next page 30 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS PENSION AND OTHER POSTRETIREMENT ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when BENEFIT OBLIGATIONS measuring fair value. The standard describes three levels of inputs that may be used KEPCo, through its 6% share in WCNOC, has a noncontributory defined benefit to measure fair value: pension and postretirement medical plan whereby it agrees to provide certain Level 1 Quoted prices in active markets for identical assets or liabilities postretirement benefits to eligible employees. The benefit obligation is the actuarial Level 2 Observable inputs other than Level 1 prices, such as quoted prices for present value of all benefits attributed to service rendered prior to the valuation similar assets or liabilities; quoted prices in markets that are not active; or other date based on the projected unit credit cost method. It is reasonably possible inputs that are observable or can be corroborated by observable market data that events could occur that would change the estimated amount of this liability forsubstantially the full term of the assets or liabilities materially in the near term. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities INVESTMENTS Following is a description of the valuation methodologies used for assets KEPCo invests in various investment securities in its NDT. Investment securities and liabilities measured at fair value on a recurring basis and recognized in the are exposed to various risks, such as interest rate, market and credit risks. Due to the accompanying consolidated balance sheets, as well as the general classification of level of risk associated with certain investment securities, it is at least reasonably such assets and liabilities pursuant to the valuation hierarchy. possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the accompanying consolidated balance sheets. DECOMMISSIONING FUND The decommissioning fund consists of various mutual funds where fair value is determined by quoted market prices in an active market and, as such, are classified Note 11: Disclosures About Fair Value of within Level 1 of the valuation hierarchy. Assets and Liabilities The following table presents the fair value measurements of assets recognized in ASC 820, Fair Value Measurements, defines fair value as the price that would the accompanying consolidated balance sheets measured at fair value on a recurring be received to sell an asset or paid to transfer a liability in an orderly transaction basis and the level within the ASC 820 fair value hierarchy in which the fair value between market participants at the measurement date. measurements fall at December 31: Continued on next page S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 31

Continued NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash "ows. Such securities are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS The estimated fair values of KEPCos other financial instruments at December 31 are as follows: The following methods were used to estimate the fair value of all other financial instruments not recognized in the accompanying consolidated balance sheets. CASH AND CASH EQUIVALENTS The carrying amount approximates fair value. INVESTMENTS IN ASSOCIATED ORGANIZATIONS Management was not able to estimate the fair value of investments that represent KEPCos investment in memberships and other associated organizations and they remain at their cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Note 12: Patronage Capital In accordance with KEPCos bylaws, KEPCos current margins are to be allocated to members. KEPCos current policy is to allocate to the members based on revenues collected from the members as a percentage of total revenues. If KEPCos consolidated financial statements were no longer prepared under the regulatory basis of accounting as prescribed by ASC 980, Regulated Operations, total patronage capital would be substantially less. As noted in the accompanying consolidated statements of patronage capital, no patronage capital distributions were made to members in 2019 and 2018. Note 13: Subsequent Events Subsequent events have been evaluated through April 8, 2020, which is the date the consolidated financial statements were available to be issued. DECLINE IN INVESTMENT FAIR VALUE There has been significant volatility in the investment markets both nationally and globally since December 31, 2019, resulting in an overall market decline, which has resulted in a substantial decline in the value of the NDT investment portfolio. Continued on next page 32 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S

F I N A N C I A L S TAT E M E N T S Continued REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITORS REPORT BOARD OF TRUSTEES KANSAS ELECTRIC POWER COOPERATIVE, INC. TOPEKA, KANSAS We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the consolidated financial statements of Kansas Electric Power Cooperative, Inc. and its wholly owned subsidiary (KEPCo), which comprise the consolidated balance sheet as of December 31, 2019, and the related consolidated statements of margin and comprehensive income, patronage capital and cash "ows for the year then ended, and the related notes to the consolidated financial statements, and have issued our report thereon dated April 8, 2020. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the consolidated financial statements, we consider KEPCos internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of KEPCos internal control. Accordingly, we do not express an opinion on the effectiveness of KEPCos internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys consolidated financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2019-001, that we consider to be a significant deficiency. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether KEPCos consolidated financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of consolidated financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. MANAGEMENTS RESPONSE TO THE FINDING Managements response to the finding identified in our audit is described in the accompanying schedule of findings and responses. Managements response was not subjected to the auditing procedures applied in the audit of the consolidated financial statements and, accordingly, we express no opinion on it. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entitys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entitys internal control and compliance. Accordingly, this communication is not suitable for any other purpose. OKLAHOMA CITY, OKLAHOMA APRIL 8, 2020 S E E N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 33

LEGISLATIVE HIGHLIGHTS Continued from page 7 session, the committee heard testimony from several rural businesses representing a wide range of industries, as well as numerous associations and social services providers, each highlighting the issues pertaining to attracting and retaining businesses and the need for essential services in rural Kansas communities. As part of our advocacy efforts, KEPCo attended each of the Co-ops Vote events sponsored by our Kansas electric cooperatives met with area legislators and members during Co-ops Vote member cooperatives. Each events. Pictured are Ark Valley staff along with KEC and KEPCo representatives. event was attended by electric cooperative employees, city and county op designation from NRECA. officials, and area state legislators. At the national level, Suzanne Lane, Susan Co-ops Vote is a program that encourages Cunningham, and Phil Wages represented KEPCo electric cooperatives to stand together as a at the Kansas Electric Cooperatives, Inc. (KEC) unified, powerful voice in local, state, and national biannual Congressional Fly-Ins in Washington, elections. This non-partisan program also strives D.C. Held in April and September 2019, KEPCos to inform both members and the candidates representatives, along with representatives from about issues important to Americas electric other Kansas electric cooperatives and KEC, met cooperatives and the communities they serve, with each member of the Kansas delegation to from the continued need for affordable and discuss such topics as the RURAL Act (co-op tax reliable electricity to broadband access and other exempt status), expansion of rural broadband, rural economic development issues. Through expanding access to sustainable energy (EASE Act), participation in Co-ops Vote events and other and the Endangered Species Act (particularly with advocacy efforts, KEPCo earned the 5-Star Co- regard to the lesser prairie chicken). Cooperative representatives met with Congressman Ron Estes at the KEC fall legislative "y-in. From left are: Doug Jackson, Rolling Hills; Dennis Svanes, Lyon-Coffey; Leslie Kaufman, Kansas Electric Cooperatives; Congressman Estes; Phil Wages, KEPCo; Doug Kansas electric cooperative representatives met with Senator Jerry Shepherd, Kansas Electric Cooperatives; Stuart Lowry, Sun"ower; Moran during their April visit to Washington, D.C. and Scott Ayres, Sedgwick County. 34

2 0 1 9 A N N U A L R E P O RT ABOUT KEPCo Kansas Electric Power Cooperative, Inc. (KEPCo), owned generation from Sharpe Generating Station, hydro headquartered in Topeka, Kansas, was incorporated in 1975 allocations consisting of 100 MW from the Southwestern as a not-for-profit generation and transmission cooperative Power Administration and 13 MW from the Western Area (G&T). It is KEPCos responsibility to procure an adequate Power Administration, 1 MW of owned generation from Prairie and reliable power and energy supply for its 19 distribution Sky Solar Farm, and partial requirement power purchases from electric cooperative members at a reasonable cost. regional utilities. In addition to its core mission, KEPCo partners with its Currently, KEPCo employs 24 employees with expertise member cooperatives on such important activities as rural in engineering, information technology, power supply, economic development, electric energy efficient appliance transmission, supervisory control and data acquisition (SCADA) rebates, load and power cost forecasting, and system operations, rates and rate design, finance, and accounting. enhancement projects. KEPCo also offers a wide range of KEPCo is a Touchstone Energy Cooperative, a national technical and engineering services to its member cooperatives, network of electric cooperatives across 46 states that provides non-member cooperatives, and other electric utility providers resources and leverages partnerships to engage and serve requiring consulting services through its wholly owned, for- their members. By working together, Touchstone Energy profit subsidiary, KEPCo Services, Inc. (KSI). Cooperatives stand as a source of power and information to Governed by a 19-member board of trustees, KEPCos their 32 million consumer-members every day. members collectively serve more than 125,000 electric meters in the eastern two-thirds of Kansas, which represents more than 300,000 rural Kansans. The board of trustees establishes policies and acts on issues that often include It is KEPCos responsibility to recommendations from working committees of the board and KEPCo staff. The board also elects a seven-person executive procure an adequate and reliable committee, which includes the president, vice president, secretary, treasurer, and three additional members. power supply for its 19 distribution KEPCos power supply resources consist of 70 MW of owned electric cooperative members at a generation from Wolf Creek Generating Station, 30 MW of owned generation from Iatan 2 Generating Plant, 20 MW of reasonable cost. 35

2 0 19 600 SW Corporate View 785-273-7010 www.kepco.org PO Box 4877 Topeka, KS 66615}}