GUARANTEES

12 Months Ended

Dec. 31, 2019

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 subsidiary'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 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.