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 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.

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 2019 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).



	September 30 2020		December 31 2019
Evergy	(millions)
Fuel inventory	$	153.7	$	146.4
Supplies	358.4		335.2
Fuel inventory and supplies	$	512.1	$	481.6
Evergy Kansas Central
Fuel inventory	$	84.9	$	80.2
Supplies	194.9		186.2
Fuel inventory and supplies	$	279.8	$	266.4
Evergy Metro
Fuel inventory	$	47.5	$	46.1
Supplies	125.7		116.9
Fuel inventory and supplies	$	173.2	$	163.0


September 30, 2020	Evergy			Evergy Kansas Central			Evergy Metro
		(millions)
Electric plant in service		$	28,670.5		$	13,947.2		$	11,110.9
Electric plant acquisition adjustment		724.3			724.3			—
Accumulated depreciation		(10,849.4)			(5,210.0)			(4,487.3)
Plant in service, net		18,545.4			9,461.5			6,623.6
Construction work in progress		946.6			527.1			337.6
Nuclear fuel, net		131.2			65.3			65.9
Plant to be retired, net(a)		0.9			0.9			—
Property, plant and equipment, net		$	19,624.1		$	10,054.8		$	7,027.1

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			—
Accumulated depreciation		(10,293.7)			(4,951.5)			(4,272.0)
Plant in service, net		18,215.7			9,327.2			6,504.5
Construction work in progress		839.2			472.8			269.9
Nuclear fuel, net		128.5			63.9			64.6
Plant to be retired, net(a)		1.0			1.0			—
Property, plant and equipment, net		$	19,184.4		$	9,864.9		$	6,839.0


	Three Months Ended September 30				Year to Date September 30
	2020		2019		2020		2019
Evergy	(millions)
Non-service cost component of net benefit cost	$	(13.7)	$	(13.7)	$	(43.7)	$	(40.9)
Other	(6.4)		(6.0)		(14.0)		(16.3)
Other expense	$	(20.1)	$	(19.7)	$	(57.7)	$	(57.2)
Evergy Kansas Central
Non-service cost component of net benefit cost	$	(4.1)	$	(4.9)	$	(14.1)	$	(14.5)
Other	(5.6)		(5.9)		(12.8)		(15.4)
Other expense	$	(9.7)	$	(10.8)	$	(26.9)	$	(29.9)
Evergy Metro
Non-service cost component of net benefit cost	$	(6.5)	$	(5.0)	$	(19.7)	$	(15.3)
Other	(0.4)		0.1		(0.5)		(0.4)
Other expense	$	(6.9)	$	(4.9)	$	(20.2)	$	(15.7)

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.


	Three Months Ended September 30				Year to Date September 30
	2020		2019		2020		2019
Income	(millions, except per share amounts)
Net income	$	367.5	$	370.9	$	576.0	$	618.9
Less: Net income attributable to noncontrolling interests	3.0		4.1		8.7		12.9
Net income attributable to Evergy, Inc.	$	364.5	$	366.8	$	567.3	$	606.0
Common Shares Outstanding
Weighted average number of common shares outstanding - basic	227.3		234.6		227.2		243.5
Add: Effect of dilutive securities	0.2		0.4		0.3		0.3
Weighted average number of common shares outstanding - dilutive	227.5		235.0		227.5		243.8
Basic EPS	$	1.60	$	1.56	$	2.50	$	2.49
Diluted EPS	$	1.60	$	1.56	$	2.49	$	2.49

Anti-dilutive shares excluded from the computation of diluted EPS for the three months ended and year to date September 30, 2020, were 124,136 RSUs with performance measures. There were no anti-dilutive securities excluded from the computation of diluted EPS for the three months ended and year to date September 30, 2019.

In November 2020, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $0.535 per share on Evergy's common stock. The common dividend is payable December 21, 2020, to shareholders of record as of November 20, 2020.


Evergy
Year to Date September 30	2020		2019
Cash paid for (received from):	(millions)
Interest, net of amounts capitalized	$	267.8	$	240.8
Interest of VIEs	0.8		1.6
Income taxes, net of refunds	(73.8)		(13.1)
Right-of-use assets obtained in exchange for new operating lease liabilities	4.1		3.0
Right-of-use assets obtained in exchange for new finance lease liabilities	5.0		2.3
Non-cash investing transactions:
Property, plant and equipment additions	371.0		99.4

Non-cash financing transactions:
Issuance of stock for compensation and reinvested dividends	0.9		(0.3)


Evergy Kansas Central
Year to Date September 30	2020		2019
Cash paid for (received from):	(millions)
Interest, net of amounts capitalized	$	114.1	$	109.4
Interest of VIEs	0.8		1.6
Income taxes, net of refunds	(6.4)		1.8
Right-of-use assets obtained in exchange for new operating lease liabilities	3.8		0.6
Right-of-use assets obtained in exchange for new finance lease liabilities	3.7		2.3
Non-cash investing transactions:
Property, plant and equipment additions	183.8		35.3


Evergy Metro
Year to Date September 30	2020		2019
Cash paid for (received from):	(millions)
Interest, net of amounts capitalized	$	73.3	$	83.5
Income taxes, net of refunds	(7.3)		32.8
Right-of-use assets obtained in exchange for new operating lease liabilities	0.3		2.4
Right-of-use assets obtained in exchange for new finance lease liabilities	1.3		—
Non-cash investing transactions:
Property, plant and equipment additions	165.6		60.8

Non-cash property, plant and equipment additions year to date September 30, 2020 for Evergy, Evergy Kansas Central and Evergy Metro include a non-cash addition related to the revision in estimate of the Wolf Creek Generating Station (Wolf Creek) asset retirement obligation (ARO) liability in the third quarter of 2020. See Note 6 for more details.