RELATED PARTY TRANSACTIONS AND RELATIONSHIPS

9 Months Ended

Sep. 30, 2020

In the normal 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.

Jointly-Owned Plants and Shared Services

Employees of Evergy Kansas Central and Evergy Metro 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. Employees of Evergy Kansas Central manage Jeffrey Energy Center (JEC) and operate its facilities at cost, including Evergy Missouri West's 8% ownership interest in JEC. Employees of Evergy Metro manage La Cygne Station and operate its facilities at cost, including Evergy Kansas Central's 50% interest in La Cygne Station. Employees of Evergy Metro and Evergy Kansas Central 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 for jointly-owned plants and shared services are detailed in the following table.


	Three Months Ended September 30				Year to Date September 30
	2020		2019		2020		2019
	(millions)
Evergy Kansas Central billings to Evergy Missouri West	$	13.1	$	4.5	$	27.4	$	17.2
Evergy Metro billings to Evergy Missouri West	46.5		41.6		121.8		125.8
Evergy Kansas Central billings to Evergy Metro	5.4		9.7		24.9		26.0
Evergy Metro billings to Evergy Kansas Central	26.9		33.0		94.5		108.8

Money Pool

Evergy Metro and Evergy Missouri West are authorized to participate in the Evergy, Inc. money pool, which is an internal financing arrangement 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 September 30, 2020, Evergy Metro had a $78.0 million outstanding receivable from Evergy Missouri West and no outstanding payables under the money pool. At December 31, 2019, 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.



	September 30		December 31
	2020		2019
Evergy Kansas Central	(millions)
Net receivable from (payable to) Evergy	$	(0.2)	$	6.9
Net payable to Evergy Metro	(15.4)		(14.9)
Net receivable from Evergy Missouri West	4.5		3.1

Evergy Metro
Net receivable from (payable to) Evergy	$	16.1	$	(4.3)
Net receivable from Evergy Kansas Central	15.4		14.9
Net receivable from Evergy Missouri West	160.0		78.7

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 September 30, 2020 and December 31, 2019, Evergy Kansas Central had income taxes receivable from Evergy of $29.3 million and $37.9 million, respectively. As of September 30, 2020 and December 31, 2019, Evergy Metro had income taxes payable to Evergy of $0.6 million and $14.1 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. The right-of-use asset related to this lease is recorded within other long-term assets and the current and long-term lease liabilities are recorded within other current liabilities and other long-term liabilities, respectively, on the consolidated balance sheet. The assets and liabilities related to this lease between Evergy Kansas Central and Evergy Metro are eliminated at consolidated Evergy. As of September 30, 2020, Evergy Metro had a right-of-use asset of $29.1 million, a current lease liability of $0.7 million and a long-term lease liability of $28.4 million on its consolidated balance sheet related to this lease. As of December 31, 2019, Evergy Metro had a right-of-use asset of $29.5 million, a current lease liability of $0.6 million and a long-term lease liability of $28.9 million on its consolidated balance sheet related to this lease.