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

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

•Evergy Transmission Company, LLC (Evergy Transmission Company) owns 13.5% of Transource Energy, LLC (Transource) with the remaining 86.5% owned by AEP Transmission Holding Company, LLC, a subsidiary of American Electric Power Company, Inc. (AEP). 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.

Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West conduct business in their respective service territories using the name Evergy. Collectively, the Evergy Companies have approximately 15,400 MWs of owned generating capacity and renewable power purchase agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.7 million customers in the states of Kansas and Missouri.

These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements in the Evergy Companies' combined 2022 Form 10-K.

These unaudited consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary to fairly present the unaudited consolidated financial statements for each of the Evergy Companies for these interim periods. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Each of Evergy's, Evergy Kansas Central's and Evergy Metro's unaudited 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).


	March 31 2023		December 31 2022
Evergy	(millions)
Fuel inventory	$	224.3	$	180.7
Supplies	499.8		492.2
Fuel inventory and supplies	$	724.1	$	672.9
Evergy Kansas Central
Fuel inventory	$	111.1	$	97.2
Supplies	258.7		252.3
Fuel inventory and supplies	$	369.8	$	349.5
Evergy Metro
Fuel inventory	$	78.9	$	59.0
Supplies	179.2		181.6
Fuel inventory and supplies	$	258.1	$	240.6


March 31, 2023	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	32,372.1		$	15,472.7		$	12,456.5
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(12,389.3)			(5,901.6)			(5,157.6)
Plant in service, net		20,707.1			10,295.4			7,298.9
Construction work in progress		1,458.3			804.3			516.9
Nuclear fuel, net		162.8			80.8			82.0
Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net		$	22,329.0		$	11,181.3		$	7,897.8

December 31, 2022	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	32,129.3		$	15,376.9		$	12,343.3
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(12,304.9)			(5,922.9)			(5,065.3)
Plant in service, net		20,548.7			10,178.3			7,278.0
Construction work in progress		1,421.2			819.5			482.6
Nuclear fuel, net		165.8			82.2			83.6
Plant to be retired, net(a)		0.8			0.8			—
Property, plant and equipment, net		$	22,136.5		$	11,080.8		$	7,844.2

For the three months ended March 31, 2022, Evergy's investment earnings (loss) included a pre-tax loss of $14.2 million related to Evergy's equity investment in an early-stage energy solutions company.



Three Months Ended March 31		2023		2022
Evergy	(millions)
Non-service cost component of net benefit cost		$	(14.8)	$	(18.4)
Other		(6.5)		(6.5)
Other expense		$	(21.3)	$	(24.9)
Evergy Kansas Central
Non-service cost component of net benefit cost		$	(4.0)	$	(4.6)
Other		(5.9)		(5.6)
Other expense		$	(9.9)	$	(10.2)
Evergy Metro
Non-service cost component of net benefit cost		$	(8.7)	$	(10.0)
Other		(0.3)		(0.5)
Other expense		$	(9.0)	$	(10.5)

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), restricted stock and a warrant. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method or the contingently issuable share method, as applicable.



Three Months Ended March 31		2023		2022
Income	(millions, except per share amounts)
Net income		$	145.7	$	125.6
Less: net income attributable to noncontrolling interests		3.1		3.1
Net income attributable to Evergy, Inc.		$	142.6	$	122.5
Common Shares Outstanding
Weighted average number of common shares outstanding - basic		230.0		229.8
Add: effect of dilutive securities		0.3		0.4
Diluted average number of common shares outstanding		230.3		230.2
Basic and Diluted EPS		$	0.62	$	0.53

In May 2023, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.6125 per share on Evergy's common stock. The common dividend is payable on June 20, 2023, to shareholders of record as of May 19, 2023.

In May 2023, Evergy Metro's Board of Directors declared a cash dividend to Evergy of up to $150.0 million, payable on June 16, 2023, or such other date as determined necessary, proper, or advisable.


Evergy
Three Months Ended March 31	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	133.0	$	76.7

Income taxes, net of refunds	(0.5)		(0.1)
Right-of-use assets obtained in exchange for new operating lease liabilities	6.2		1.6
Right-of-use assets obtained in exchange for new finance lease liabilities	—		2.4
Non-cash investing transactions:
Property, plant and equipment additions	112.1		122.6

Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends	—		0.2


Evergy Kansas Central
Three Months Ended March 31	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	56.3	$	32.1

Income taxes, net of refunds	(0.2)		—
Right-of-use assets obtained in exchange for new operating lease liabilities	2.7		1.6
Right-of-use assets obtained in exchange for new finance lease liabilities	—		2.4
Non-cash investing transactions:
Property, plant and equipment additions	54.8		42.0


Evergy Metro
Three Months Ended March 31	2023		2022
Cash paid for (received from):	(millions)
Interest, net of amount capitalized	$	31.1	$	15.6

Right-of-use assets obtained in exchange for new operating lease liabilities	3.5		—

Non-cash investing transactions:
Property, plant and equipment additions	41.0		38.5

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

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

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