|
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Exact name of registrant as specified in its charter,
|
|
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Commission
|
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state of incorporation, address of principal
|
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I.R.S. Employer
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File Number
|
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executive offices and telephone number
|
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Identification Number
|
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001-38515
|
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EVERGY, INC.
|
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82-2733395
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(a Missouri corporation)
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1200 Main Street
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Kansas City, Missouri 64105
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(816) 556-2200
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001-03523
|
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WESTAR ENERGY, INC.
|
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48-0290150
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(a Kansas corporation)
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818 South Kansas Avenue
|
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Topeka, Kansas 66612
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(785) 575-6300
|
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000-51873
|
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KANSAS CITY POWER & LIGHT COMPANY
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44-0308720
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(a Missouri corporation)
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1200 Main Street
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Kansas City, Missouri 64105
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(816) 556-2200
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TABLE OF CONTENTS
|
|||
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Page Number
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Item 1.
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|||
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Note 1:
|
||
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Note 2:
|
||
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Note 3:
|
||
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Note 4:
|
||
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Note 5:
|
||
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Note 6:
|
||
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Note 7:
|
||
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Note 8:
|
||
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Note 9:
|
||
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Note 10:
|
||
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Note 11:
|
||
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Note 12:
|
||
|
Note 13:
|
||
|
Note 14:
|
||
|
Note 15:
|
||
|
Note 16:
|
||
|
Note 17:
|
||
Item 2.
|
|||
Item 3.
|
|||
Item 4.
|
|||
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|
|||
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|
|
Item 1.
|
|||
Item 1A.
|
|||
Item 2.
|
|||
Item 3.
|
|||
Item 4.
|
|||
Item 5.
|
|||
Item 6.
|
|||
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|
|
Abbreviation or Acronym
|
|
Definition
|
|
|
|
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, Westar Energy, Monarch Energy Holding, Inc. and King Energy, Inc.
|
AMT
|
|
Alternative Minimum Tax
|
ARO
|
|
Asset Retirement Obligation
|
ASC
|
|
Accounting Standards Codification
|
ASU
|
|
Accounting Standards Update
|
CCRs
|
|
Coal combustion residuals
|
Clean Air Act
|
|
Clean Air Act Amendments of 1990
|
CO
2
|
|
Carbon dioxide
|
COLI
|
|
Corporate-owned life insurance
|
CWA
|
|
Clean Water Act
|
DOE
|
|
Department of Energy
|
EIRR
|
|
Environmental Improvement Revenue Refunding
|
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, Westar Energy, and KCP&L, collectively, which are individual registrants within the Evergy consolidated group
|
Exchange Act
|
|
The Securities Exchange Act of 1934, as amended
|
FASB
|
|
Financial Accounting Standards Board
|
FERC
|
|
The Federal Energy Regulatory Commission
|
FMBs
|
|
First mortgage bonds
|
GAAP
|
|
Generally Accepted Accounting Principles
|
GHG
|
|
Greenhouse gas
|
GMO
|
|
KCP&L Greater Missouri Operations Company, a wholly-owned subsidiary of Evergy
|
GPETHC
|
|
GPE Transmission Holding Company LLC, a wholly-owned subsidiary of Evergy
|
Great Plains Energy
|
|
Great Plains Energy Incorporated
|
KCC
|
|
State Corporation Commission of the State of Kansas
|
KCP&L
|
|
Kansas City Power & Light Company, a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
|
KCP&L Receivables Company
|
|
Kansas City Power & Light Receivables Company, a wholly-owned subsidiary of KCP&L
|
KDHE
|
|
Kansas Department of Health & Environment
|
KGE
|
|
Kansas Gas and Electric Company, a wholly-owned subsidiary of Westar Energy
|
King Energy
|
|
King Energy, Inc., a wholly-owned subsidiary of Evergy
|
kWh
|
|
Kilowatt hour
|
Abbreviation or Acronym
|
|
Definition
|
|
|
|
MEEIA
|
|
Missouri Energy Efficiency Investment Act
|
MMBtu
|
|
Millions of British thermal units
|
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
|
NO
2
|
|
Nitrogen dioxide
|
NRC
|
|
Nuclear Regulatory Commission
|
PISA
|
|
Plant-in service accounting
|
PM
|
|
Particulate matter
|
Prairie Wind
|
|
Prairie Wind Transmission, LLC, 50% owned by Westar Energy
|
RSU
|
|
Restricted share unit
|
RTO
|
|
Regional transmission organization
|
SEC
|
|
Securities and Exchange Commission
|
SO
2
|
|
Sulfur dioxide
|
SPP
|
|
Southwest Power Pool, Inc.
|
TFR
|
|
Transmission formula rate
|
Transource
|
|
Transource Energy, LLC and its subsidiaries, 13.5% owned by GPETHC
|
VIE
|
|
Variable interest entity
|
WCNOC
|
|
Wolf Creek Nuclear Operating Corporation
|
Westar Energy
|
|
Westar Energy, Inc., a wholly-owned subsidiary of Evergy, and its consolidated subsidiaries
|
Wolf Creek
|
|
Wolf Creek Generating Station
|
WOTUS
|
|
Waters of the United States
|
EVERGY, INC.
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|
|
|
||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
ASSETS
|
(millions, except share amounts)
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
679.7
|
|
|
|
|
$
|
3.4
|
|
|
Receivables, net
|
|
496.5
|
|
|
|
|
290.7
|
|
|
||
Accounts receivable pledged as collateral
|
|
195.0
|
|
|
|
|
—
|
|
|
||
Fuel inventory and supplies
|
|
520.9
|
|
|
|
|
293.6
|
|
|
||
Income taxes receivable
|
|
20.8
|
|
|
|
|
—
|
|
|
||
Regulatory assets
|
|
332.5
|
|
|
|
|
99.5
|
|
|
||
Prepaid expenses and other assets
|
|
73.6
|
|
|
|
|
39.8
|
|
|
||
Total Current Assets
|
|
2,319.0
|
|
|
|
|
727.0
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
18,836.0
|
|
|
|
|
9,553.8
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET
|
|
170.9
|
|
|
|
|
176.3
|
|
|
||
OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
1,518.1
|
|
|
|
|
685.4
|
|
|
||
Nuclear decommissioning trust fund
|
|
518.0
|
|
|
|
|
237.1
|
|
|
||
Goodwill
|
|
2,333.5
|
|
|
|
|
—
|
|
|
||
Other
|
|
379.7
|
|
|
|
|
244.8
|
|
|
||
Total Other Assets
|
|
4,749.3
|
|
|
|
|
1,167.3
|
|
|
||
TOTAL ASSETS
|
|
$
|
26,075.2
|
|
|
|
|
$
|
11,624.4
|
|
|
EVERGY, INC.
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|||||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
LIABILITIES AND EQUITY
|
(millions, except share amounts)
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
$
|
709.6
|
|
|
|
|
$
|
—
|
|
|
Current maturities of long-term debt of variable interest entities
|
|
30.3
|
|
|
|
|
28.5
|
|
|
||
Notes payable and commercial paper
|
|
675.9
|
|
|
|
|
275.7
|
|
|
||
Collateralized note payable
|
|
195.0
|
|
|
|
|
—
|
|
|
||
Accounts payable
|
|
303.7
|
|
|
|
|
204.2
|
|
|
||
Accrued dividends
|
|
—
|
|
|
|
|
53.8
|
|
|
||
Accrued taxes
|
|
282.1
|
|
|
|
|
87.7
|
|
|
||
Accrued interest
|
|
119.6
|
|
|
|
|
72.7
|
|
|
||
Regulatory liabilities
|
|
117.2
|
|
|
|
|
11.6
|
|
|
||
Other
|
|
225.8
|
|
|
|
|
89.5
|
|
|
||
Total Current Liabilities
|
|
2,659.2
|
|
|
|
|
823.7
|
|
|
||
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||
Long-term debt, net
|
|
6,639.8
|
|
|
|
|
3,687.6
|
|
|
||
Long-term debt of variable interest entities, net
|
|
51.1
|
|
|
|
|
81.4
|
|
|
||
Deferred income taxes
|
|
1,536.0
|
|
|
|
|
815.7
|
|
|
||
Unamortized investment tax credits
|
|
378.9
|
|
|
|
|
257.1
|
|
|
||
Regulatory liabilities
|
|
2,357.1
|
|
|
|
|
1,094.0
|
|
|
||
Pension and post-retirement liability
|
|
949.7
|
|
|
|
|
491.2
|
|
|
||
Asset retirement obligations
|
|
622.7
|
|
|
|
|
380.0
|
|
|
||
Other
|
|
231.9
|
|
|
|
|
133.3
|
|
|
||
Total Long-Term Liabilities
|
|
12,767.2
|
|
|
|
|
6,940.3
|
|
|
||
Commitments and Contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
||
EQUITY:
|
|
|
|
|
|
|
|
||||
Evergy, Inc. Shareholders' Equity:
|
|
|
|
|
|
|
|
||||
Common stock - 600,000,000 shares authorized, without par value, 264,797,584 shares issued (275,000,000 shares authorized, $5 par value, 142,094,275 shares issued as of December 31, 2017)
|
|
9,236.4
|
|
|
|
|
2,734.8
|
|
|
||
Retained earnings
|
|
1,452.5
|
|
|
|
|
1,173.3
|
|
|
||
Total Evergy, Inc. Shareholders' Equity
|
|
10,688.9
|
|
|
|
|
3,908.1
|
|
|
||
Noncontrolling Interests
|
|
(40.1
|
)
|
|
|
|
(47.7
|
)
|
|
||
Total Equity
|
|
10,648.8
|
|
|
|
|
3,860.4
|
|
|
||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
26,075.2
|
|
|
|
|
$
|
11,624.4
|
|
|
EVERGY, INC.
|
|||||||||
Consolidated Statements of Cash Flows
|
|
||||||||
(Unaudited)
|
|||||||||
|
|
|
|
|
|
||||
Year to Date September 30
|
2018
|
|
|
2017
|
|
||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
|
(millions)
|
||||||||
Net income
|
$
|
524.9
|
|
|
|
$
|
300.2
|
|
|
Adjustments to reconcile income to net cash from operating activities:
|
|
|
|
|
|
||||
Depreciation and amortization
|
411.6
|
|
|
|
277.3
|
|
|
||
Amortization of nuclear fuel
|
28.6
|
|
|
|
24.2
|
|
|
||
Amortization of deferred refueling outage
|
14.7
|
|
|
|
12.1
|
|
|
||
Amortization of deferred regulatory gain from sale leaseback
|
(4.1
|
)
|
|
|
(4.1
|
)
|
|
||
Amortization of corporate-owned life insurance
|
17.2
|
|
|
|
15.7
|
|
|
||
Non-cash compensation
|
25.2
|
|
|
|
6.7
|
|
|
||
Net deferred income taxes and credits
|
47.8
|
|
|
|
127.0
|
|
|
||
Allowance for equity funds used during construction
|
(2.4
|
)
|
|
|
(1.1
|
)
|
|
||
Payments for asset retirement obligations
|
(15.9
|
)
|
|
|
(1.9
|
)
|
|
||
Equity in earnings of equity method investees, net of income taxes
|
(4.7
|
)
|
|
|
(4.9
|
)
|
|
||
Other
|
(1.9
|
)
|
|
|
(5.3
|
)
|
|
||
Changes in working capital items:
|
|
|
|
|
|
||||
Accounts receivable
|
(34.9
|
)
|
|
|
(19.7
|
)
|
|
||
Accounts receivable pledged as collateral
|
(15.0
|
)
|
|
|
—
|
|
|
||
Fuel inventory and supplies
|
44.6
|
|
|
|
15.5
|
|
|
||
Prepaid expenses and other current assets
|
(3.4
|
)
|
|
|
55.5
|
|
|
||
Accounts payable
|
(58.5
|
)
|
|
|
(10.0
|
)
|
|
||
Accrued taxes
|
119.0
|
|
|
|
35.6
|
|
|
||
Other current liabilities
|
38.9
|
|
|
|
(108.5
|
)
|
|
||
Changes in other assets
|
26.0
|
|
|
|
22.9
|
|
|
||
Changes in other liabilities
|
33.9
|
|
|
|
5.5
|
|
|
||
Cash Flows from Operating Activities
|
1,191.6
|
|
|
|
742.7
|
|
|
||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(698.3
|
)
|
|
|
(564.6
|
)
|
|
||
Cash acquired from the merger with Great Plains Energy
|
1,154.2
|
|
|
|
—
|
|
|
||
Purchase of securities - trusts
|
(107.0
|
)
|
|
|
(15.3
|
)
|
|
||
Sale of securities - trusts
|
110.2
|
|
|
|
15.9
|
|
|
||
Investment in corporate-owned life insurance
|
(16.2
|
)
|
|
|
(16.2
|
)
|
|
||
Proceeds from investment in corporate-owned life insurance
|
6.5
|
|
|
|
2.1
|
|
|
||
Proceeds from settlement of interest rate swap
|
140.6
|
|
|
|
—
|
|
|
||
Other investing activities
|
(15.2
|
)
|
|
|
(3.3
|
)
|
|
||
Cash Flows from (used in) Investing Activities
|
574.8
|
|
|
|
(581.4
|
)
|
|
||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||
Short term debt, net
|
(166.7
|
)
|
|
|
(177.7
|
)
|
|
||
Collateralized short-term borrowings, net
|
15.0
|
|
|
|
—
|
|
|
||
Proceeds from long-term debt
|
22.9
|
|
|
|
296.2
|
|
|
||
Retirements of long-term debt
|
(127.4
|
)
|
|
|
(125.0
|
)
|
|
||
Retirements of long-term debt of variable interest entities
|
(28.5
|
)
|
|
|
(26.8
|
)
|
|
||
Repayment of capital leases
|
(2.9
|
)
|
|
|
(2.6
|
)
|
|
||
Borrowings against cash surrender value of corporate-owned life insurance
|
55.1
|
|
|
|
53.4
|
|
|
||
Repayment of borrowings against cash surrender value of corporate-owned life insurance
|
(3.9
|
)
|
|
|
—
|
|
|
||
Distributions to shareholders of noncontrolling interests
|
—
|
|
|
|
(5.8
|
)
|
|
||
Cash dividends paid
|
(350.4
|
)
|
|
|
(166.3
|
)
|
|
||
Repurchase of common stock
|
(486.1
|
)
|
|
|
—
|
|
|
||
Other financing activities
|
(17.2
|
)
|
|
|
(6.4
|
)
|
|
||
Cash Flows (used in) Financing Activities
|
(1,090.1
|
)
|
|
|
(161.0
|
)
|
|
||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
676.3
|
|
|
|
0.3
|
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
|
|
|
|
|
|
||||
Beginning of period, including restricted cash of $0.1 and $0.1, respectively
|
3.5
|
|
|
|
3.2
|
|
|
||
End of period, including restricted cash of $0.1 and $0.1, respectively
|
$
|
679.8
|
|
|
|
$
|
3.5
|
|
|
EVERGY, INC.
|
||||||||||||||||||
Consolidated Statements of Changes in Equity
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Evergy, Inc. Shareholders
|
|
|
|
|
|||||||||||||
|
Common stock shares
|
|
Common stock
|
|
Retained earnings
|
|
Non-controlling interests
|
|
Total 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
|
—
|
|
|
—
|
|
|
290.0
|
|
|
10.2
|
|
|
300.2
|
|
||||
Issuance of stock
|
12,131
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
290,892
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
||||
Tax withholding related to stock compensation
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
||||
Dividends declared on common stock ($1.20 per share)
|
—
|
|
|
—
|
|
|
(172.1
|
)
|
|
—
|
|
|
(172.1
|
)
|
||||
Stock compensation expense
|
—
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
||||
Deconsolidation of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(81.9
|
)
|
|
(81.9
|
)
|
||||
Distributions to shareholders of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.7
|
)
|
|
(5.7
|
)
|
||||
Balance as of September 30, 2017
|
142,094,176
|
|
|
$
|
2,732.5
|
|
|
$
|
1,196.5
|
|
|
$
|
(50.1
|
)
|
|
$
|
3,878.9
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of December 31, 2017
|
142,094,275
|
|
|
$
|
2,734.8
|
|
|
$
|
1,173.3
|
|
|
$
|
(47.7
|
)
|
|
$
|
3,860.4
|
|
Net income
|
—
|
|
|
—
|
|
|
517.3
|
|
|
7.6
|
|
|
524.9
|
|
||||
Issuance of stock to Great Plains Energy shareholders
|
128,947,518
|
|
|
6,979.9
|
|
|
—
|
|
|
—
|
|
|
6,979.9
|
|
||||
Issuance of restricted common stock
|
122,505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
528,359
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
||||
Tax withholding related to stock compensation
|
—
|
|
|
(17.2
|
)
|
|
—
|
|
|
—
|
|
|
(17.2
|
)
|
||||
Dividends declared on common stock ($1.26 per share)
|
—
|
|
|
—
|
|
|
(237.5
|
)
|
|
—
|
|
|
(237.5
|
)
|
||||
Dividend equivalents declared
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||
Stock compensation expense
|
—
|
|
|
25.2
|
|
|
—
|
|
|
—
|
|
|
25.2
|
|
||||
Repurchase of common stock
|
(6,895,073
|
)
|
|
(486.1
|
)
|
|
—
|
|
|
—
|
|
|
(486.1
|
)
|
||||
Other
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
||||
Balance as of September 30, 2018
|
264,797,584
|
|
|
$
|
9,236.4
|
|
|
$
|
1,452.5
|
|
|
$
|
(40.1
|
)
|
|
$
|
10,648.8
|
|
WESTAR ENERGY, INC.
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|
|
|
||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
ASSETS
|
(millions, except share amounts)
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3.3
|
|
|
|
|
$
|
3.4
|
|
|
Receivables, net
|
|
347.5
|
|
|
|
|
290.7
|
|
|
||
Related party receivables
|
|
0.7
|
|
|
|
|
—
|
|
|
||
Fuel inventory and supplies
|
|
268.7
|
|
|
|
|
293.6
|
|
|
||
Regulatory assets
|
|
120.4
|
|
|
|
|
99.5
|
|
|
||
Prepaid expenses and other assets
|
|
31.9
|
|
|
|
|
39.8
|
|
|
||
Total Current Assets
|
|
772.5
|
|
|
|
|
727.0
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
9,637.5
|
|
|
|
|
9,553.8
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET
|
|
170.9
|
|
|
|
|
176.3
|
|
|
||
OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
693.7
|
|
|
|
|
685.4
|
|
|
||
Nuclear decommissioning trust fund
|
|
245.8
|
|
|
|
|
237.1
|
|
|
||
Other
|
|
227.3
|
|
|
|
|
244.8
|
|
|
||
Total Other Assets
|
|
1,166.8
|
|
|
|
|
1,167.3
|
|
|
||
TOTAL ASSETS
|
|
$
|
11,747.7
|
|
|
|
|
$
|
11,624.4
|
|
|
WESTAR ENERGY, INC.
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|||||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
LIABILITIES AND EQUITY
|
(millions, except share amounts)
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
$
|
300.0
|
|
|
|
|
$
|
—
|
|
|
Current maturities of long-term debt of variable interest entities
|
|
30.3
|
|
|
|
|
28.5
|
|
|
||
Notes payable and commercial paper
|
|
326.3
|
|
|
|
|
275.7
|
|
|
||
Accounts payable
|
|
135.1
|
|
|
|
|
204.2
|
|
|
||
Related party payables
|
|
73.9
|
|
|
|
|
—
|
|
|
||
Accrued dividends
|
|
—
|
|
|
|
|
53.8
|
|
|
||
Accrued taxes
|
|
144.9
|
|
|
|
|
87.7
|
|
|
||
Accrued interest
|
|
65.3
|
|
|
|
|
72.7
|
|
|
||
Regulatory liabilities
|
|
91.6
|
|
|
|
|
11.6
|
|
|
||
Other
|
|
109.4
|
|
|
|
|
89.5
|
|
|
||
Total Current Liabilities
|
|
1,276.8
|
|
|
|
|
823.7
|
|
|
||
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||
Long-term debt, net
|
|
3,389.7
|
|
|
|
|
3,687.6
|
|
|
||
Long-term debt of variable interest entities, net
|
|
51.1
|
|
|
|
|
81.4
|
|
|
||
Deferred income taxes
|
|
787.1
|
|
|
|
|
815.7
|
|
|
||
Unamortized investment tax credits
|
|
255.1
|
|
|
|
|
257.1
|
|
|
||
Regulatory liabilities
|
|
1,136.9
|
|
|
|
|
1,094.0
|
|
|
||
Pension and post-retirement liability
|
|
465.2
|
|
|
|
|
491.2
|
|
|
||
Asset retirement obligations
|
|
257.8
|
|
|
|
|
380.0
|
|
|
||
Other
|
|
127.8
|
|
|
|
|
133.3
|
|
|
||
Total Long-Term Liabilities
|
|
6,470.7
|
|
|
|
|
6,940.3
|
|
|
||
Commitments and Contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
||
EQUITY:
|
|
|
|
|
|
|
|
|
|||
Westar Energy, Inc. Shareholder's Equity:
|
|
|
|
|
|
|
|
|
|
||
Common stock - 1,000 shares authorized, $0.01 par value, 1 share issued (275,000,000 shares authorized, $5 par value, and 142,094,275 shares issued as of December 31, 2017)
|
|
2,737.6
|
|
|
|
|
2,734.8
|
|
|
||
Retained earnings
|
|
1,302.7
|
|
|
|
|
1,173.3
|
|
|
||
Total Westar Energy, Inc. Shareholder's Equity
|
|
4,040.3
|
|
|
|
|
3,908.1
|
|
|
||
Noncontrolling Interests
|
|
(40.1
|
)
|
|
|
|
(47.7
|
)
|
|
||
Total Equity
|
|
4,000.2
|
|
|
|
|
3,860.4
|
|
|
||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
11,747.7
|
|
|
|
|
$
|
11,624.4
|
|
|
WESTAR ENERGY, INC.
|
||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(millions)
|
||||||||||||||
OPERATING REVENUES
|
|
$
|
764.8
|
|
|
$
|
794.3
|
|
|
$
|
2,015.9
|
|
|
$
|
1,976.2
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
||||||||
Fuel and purchased power
|
|
169.7
|
|
|
189.8
|
|
|
463.2
|
|
|
415.4
|
|
||||
SPP network transmission costs
|
|
58.4
|
|
|
62.6
|
|
|
194.4
|
|
|
185.0
|
|
||||
Operating and maintenance
|
|
141.7
|
|
|
140.6
|
|
|
491.4
|
|
|
415.6
|
|
||||
Depreciation and amortization
|
|
95.9
|
|
|
94.6
|
|
|
281.6
|
|
|
277.3
|
|
||||
Taxes other than income tax
|
|
42.2
|
|
|
41.8
|
|
|
128.8
|
|
|
126.4
|
|
||||
Total Operating Expenses
|
|
507.9
|
|
|
529.4
|
|
|
1,559.4
|
|
|
1,419.7
|
|
||||
INCOME FROM OPERATIONS
|
|
256.9
|
|
|
264.9
|
|
|
456.5
|
|
|
556.5
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
||||||||
Investment earnings
|
|
—
|
|
|
1.0
|
|
|
(0.4
|
)
|
|
3.5
|
|
||||
Other income
|
|
1.3
|
|
|
3.9
|
|
|
4.9
|
|
|
5.7
|
|
||||
Other expense
|
|
(15.2
|
)
|
|
(11.5
|
)
|
|
(36.1
|
)
|
|
(29.6
|
)
|
||||
Total Other Income (Expense), Net
|
|
(13.9
|
)
|
|
(6.6
|
)
|
|
(31.6
|
)
|
|
(20.4
|
)
|
||||
Interest expense
|
|
43.9
|
|
|
43.4
|
|
|
132.1
|
|
|
128.2
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
199.1
|
|
|
214.9
|
|
|
292.8
|
|
|
407.9
|
|
||||
Income tax expense (benefit)
|
|
22.4
|
|
|
55.8
|
|
|
(22.0
|
)
|
|
112.6
|
|
||||
Equity in earnings of equity method investees, net of income taxes
|
|
1.3
|
|
|
1.6
|
|
|
3.7
|
|
|
4.9
|
|
||||
NET INCOME
|
|
178.0
|
|
|
160.7
|
|
|
318.5
|
|
|
300.2
|
|
||||
Less: Net income attributable to noncontrolling interests
|
|
2.6
|
|
|
2.4
|
|
|
7.6
|
|
|
10.2
|
|
||||
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.
|
|
$
|
175.4
|
|
|
$
|
158.3
|
|
|
$
|
310.9
|
|
|
$
|
290.0
|
|
WESTAR ENERGY, INC.
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
(Unaudited)
|
||||||||
|
|
|
|
|
||||
Year to Date September 30
|
2018
|
|
|
2017
|
||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
|
(millions)
|
|||||||
Net income
|
$
|
318.5
|
|
|
|
$
|
300.2
|
|
Adjustments to reconcile income (loss) to net cash from operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
281.6
|
|
|
|
277.3
|
|
||
Amortization of nuclear fuel
|
18.6
|
|
|
|
24.2
|
|
||
Amortization of deferred refueling outage
|
10.5
|
|
|
|
12.1
|
|
||
Amortization of deferred regulatory gain from sale leaseback
|
(4.1
|
)
|
|
|
(4.1
|
)
|
||
Amortization of corporate-owned life insurance
|
17.2
|
|
|
|
15.7
|
|
||
Non-cash compensation
|
19.9
|
|
|
|
6.7
|
|
||
Net deferred income taxes and credits
|
(34.2
|
)
|
|
|
127.0
|
|
||
Allowance for equity funds used during construction
|
(2.4
|
)
|
|
|
(1.1
|
)
|
||
Payments for asset retirement obligations
|
(10.6
|
)
|
|
|
(1.9
|
)
|
||
Equity in earnings of equity method investees, net of income taxes
|
(3.7
|
)
|
|
|
(4.9
|
)
|
||
Other
|
(1.9
|
)
|
|
|
(5.3
|
)
|
||
Changes in working capital items:
|
|
|
|
|
||||
Accounts receivable
|
(50.6
|
)
|
|
|
(19.7
|
)
|
||
Fuel inventory and supplies
|
25.4
|
|
|
|
15.5
|
|
||
Prepaid expenses and other current assets
|
(7.0
|
)
|
|
|
55.5
|
|
||
Accounts payable
|
36.2
|
|
|
|
(10.0
|
)
|
||
Accrued taxes
|
74.4
|
|
|
|
35.6
|
|
||
Other current liabilities
|
23.2
|
|
|
|
(108.5
|
)
|
||
Changes in other assets
|
22.9
|
|
|
|
22.9
|
|
||
Changes in other liabilities
|
(26.7
|
)
|
|
|
5.5
|
|
||
Cash Flows from Operating Activities
|
707.2
|
|
|
|
742.7
|
|
||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(510.3
|
)
|
|
|
(564.6
|
)
|
||
Purchase of securities - trusts
|
(96.1
|
)
|
|
|
(15.3
|
)
|
||
Sale of securities - trusts
|
101.2
|
|
|
|
15.9
|
|
||
Investment in corporate-owned life insurance
|
(16.2
|
)
|
|
|
(16.2
|
)
|
||
Proceeds from investment in corporate-owned life insurance
|
6.5
|
|
|
|
2.1
|
|
||
Other investing activities
|
(8.1
|
)
|
|
|
(3.3
|
)
|
||
Cash Flows (used in) Investing Activities
|
(523.0
|
)
|
|
|
(581.4
|
)
|
||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||
Short term debt, net
|
48.3
|
|
|
|
(177.7
|
)
|
||
Proceeds from long-term debt
|
—
|
|
|
|
296.2
|
|
||
Retirements of long-term debt
|
—
|
|
|
|
(125.0
|
)
|
||
Retirements of long-term debt of variable interest entities
|
(28.5
|
)
|
|
|
(26.8
|
)
|
||
Repayment of capital leases
|
(2.9
|
)
|
|
|
(2.6
|
)
|
||
Borrowings against cash surrender value of corporate-owned life insurance
|
55.1
|
|
|
|
53.4
|
|
||
Repayment of borrowings against cash surrender value of corporate-owned life insurance
|
(3.9
|
)
|
|
|
—
|
|
||
Distributions to shareholders of noncontrolling interests
|
—
|
|
|
|
(5.8
|
)
|
||
Cash dividends paid
|
(235.1
|
)
|
|
|
(166.3
|
)
|
||
Other financing activities
|
(17.3
|
)
|
|
|
(6.4
|
)
|
||
Cash Flows (used in) Financing Activities
|
(184.3
|
)
|
|
|
(161.0
|
)
|
||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(0.1
|
)
|
|
|
0.3
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
|
|
|
|
|
||||
Beginning of period, including restricted cash of $0.1 and $0.1, respectively
|
3.5
|
|
|
|
3.2
|
|
||
End of period, including restricted cash of $0.1 and $0.1, respectively
|
$
|
3.4
|
|
|
|
$
|
3.5
|
|
WESTAR ENERGY, INC.
|
||||||||||||||||||
Consolidated Statements of Changes in Equity
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Westar Energy, Inc. Shareholders
|
|
|
|
|
|||||||||||||
|
Common stock shares
|
|
Common stock
|
|
Retained earnings
|
|
Non-controlling interests
|
|
Total 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
|
—
|
|
|
—
|
|
|
290.0
|
|
|
10.2
|
|
|
300.2
|
|
||||
Issuance of stock
|
12,131
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
290,892
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
||||
Tax withholding related to stock compensation
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
||||
Dividends declared on common stock ($1.20 per share)
|
—
|
|
|
—
|
|
|
(172.1
|
)
|
|
—
|
|
|
(172.1
|
)
|
||||
Stock compensation expense
|
—
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
||||
Deconsolidation of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(81.9
|
)
|
|
(81.9
|
)
|
||||
Distributions to shareholders of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.7
|
)
|
|
(5.7
|
)
|
||||
Balance as of September 30, 2017
|
142,094,176
|
|
|
$
|
2,732.5
|
|
|
$
|
1,196.5
|
|
|
$
|
(50.1
|
)
|
|
$
|
3,878.9
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of December 31, 2017
|
142,094,275
|
|
|
$
|
2,734.8
|
|
|
$
|
1,173.3
|
|
|
$
|
(47.7
|
)
|
|
$
|
3,860.4
|
|
Net income
|
—
|
|
|
—
|
|
|
310.9
|
|
|
7.6
|
|
|
318.5
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
516,990
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Stock cancelled pursuant to Amended Merger Agreement
|
(142,611,264
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax withholding related to stock compensation
|
—
|
|
|
(17.2
|
)
|
|
—
|
|
|
—
|
|
|
(17.2
|
)
|
||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
(181.5
|
)
|
|
—
|
|
|
(181.5
|
)
|
||||
Stock compensation expense
|
—
|
|
|
19.9
|
|
|
—
|
|
|
—
|
|
|
19.9
|
|
||||
Other
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Balance as of September 30, 2018
|
1
|
|
|
$
|
2,737.6
|
|
|
$
|
1,302.7
|
|
|
$
|
(40.1
|
)
|
|
$
|
4,000.2
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|
|
|
||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
ASSETS
|
(millions, except share amounts)
|
||||||||||
CURRENT ASSETS:
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
3.4
|
|
|
|
|
$
|
2.2
|
|
|
Receivables, net
|
|
102.9
|
|
|
|
|
106.3
|
|
|
||
Related party receivables
|
|
142.2
|
|
|
|
|
84.7
|
|
|
||
Accounts receivable pledged as collateral
|
|
130.0
|
|
|
|
|
130.0
|
|
|
||
Fuel inventory and supplies
|
|
183.8
|
|
|
|
|
197.0
|
|
|
||
Income taxes receivable
|
|
—
|
|
|
|
|
5.4
|
|
|
||
Regulatory assets
|
|
145.6
|
|
|
|
|
153.6
|
|
|
||
Prepaid expenses and other assets
|
|
35.7
|
|
|
|
|
27.6
|
|
|
||
Total Current Assets
|
|
743.6
|
|
|
|
|
706.8
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT, NET
|
|
6,660.3
|
|
|
|
|
6,565.6
|
|
|
||
OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
||
Regulatory assets
|
|
479.5
|
|
|
|
|
545.1
|
|
|
||
Nuclear decommissioning trust fund
|
|
272.2
|
|
|
|
|
258.4
|
|
|
||
Other
|
|
54.5
|
|
|
|
|
48.0
|
|
|
||
Total Other Assets
|
|
806.2
|
|
|
|
|
851.5
|
|
|
||
TOTAL ASSETS
|
|
$
|
8,210.1
|
|
|
|
|
$
|
8,123.9
|
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
|||||||||||
Consolidated Balance Sheets
|
|||||||||||
(Unaudited)
|
|||||||||||
|
|||||||||||
|
September 30
|
|
December 31
|
||||||||
|
2018
|
|
2017
|
||||||||
LIABILITIES AND EQUITY
|
|
||||||||||
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
$
|
400.0
|
|
|
|
|
$
|
350.0
|
|
|
Notes payable and commercial paper
|
|
209.2
|
|
|
|
|
167.5
|
|
|
||
Collateralized note payable
|
|
130.0
|
|
|
|
|
130.0
|
|
|
||
Accounts payable, net
|
|
132.9
|
|
|
|
|
249.0
|
|
|
||
Related party payables
|
|
3.2
|
|
|
|
|
—
|
|
|
||
Accrued taxes
|
|
121.5
|
|
|
|
|
29.0
|
|
|
||
Accrued interest
|
|
39.5
|
|
|
|
|
32.4
|
|
|
||
Regulatory liabilities
|
|
15.3
|
|
|
|
|
8.3
|
|
|
||
Other
|
|
98.5
|
|
|
|
|
98.3
|
|
|
||
Total Current Liabilities
|
|
1,150.1
|
|
|
|
|
1,064.5
|
|
|
||
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||
Long-term debt, net
|
|
2,129.9
|
|
|
|
|
2,232.2
|
|
|
||
Deferred income taxes
|
|
619.6
|
|
|
|
|
616.1
|
|
|
||
Unamortized investment tax credits
|
|
120.9
|
|
|
|
|
121.8
|
|
|
||
Regulatory liabilities
|
|
862.9
|
|
|
|
|
770.9
|
|
|
||
Pension and post-retirement liability
|
|
522.3
|
|
|
|
|
512.2
|
|
|
||
Asset retirement obligations
|
|
222.7
|
|
|
|
|
231.4
|
|
|
||
Other
|
|
80.7
|
|
|
|
|
61.6
|
|
|
||
Total Long-Term Liabilities
|
|
4,559.0
|
|
|
|
|
4,546.2
|
|
|
||
Commitments and Contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
||
EQUITY:
|
|
|
|
|
|
|
|
|
|
||
Common stock - 1,000 shares authorized, without par value, 1 share issued, stated value
|
|
1,563.1
|
|
|
|
|
1,563.1
|
|
|
||
Retained earnings
|
|
934.8
|
|
|
|
|
949.7
|
|
|
||
Accumulated other comprehensive income
|
|
3.1
|
|
|
|
|
0.4
|
|
|
||
Total Equity
|
|
2,501.0
|
|
|
|
|
2,513.2
|
|
|
||
TOTAL LIABILITIES AND EQUITY
|
|
$
|
8,210.1
|
|
|
|
|
$
|
8,123.9
|
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
||||||||||||||||
Consolidated Statements of Comprehensive Income
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(millions)
|
||||||||||||||
OPERATING REVENUES
|
|
$
|
559.6
|
|
|
$
|
595.7
|
|
|
$
|
1,408.9
|
|
|
$
|
1,474.3
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||
Fuel and purchased power
|
|
142.4
|
|
|
143.9
|
|
|
392.4
|
|
|
367.3
|
|
||||
Operating and maintenance
|
|
127.3
|
|
|
114.3
|
|
|
354.5
|
|
|
350.7
|
|
||||
Depreciation and amortization
|
|
71.9
|
|
|
66.3
|
|
|
209.0
|
|
|
199.9
|
|
||||
Taxes other than income tax
|
|
28.6
|
|
|
51.4
|
|
|
87.9
|
|
|
140.2
|
|
||||
Total Operating Expenses
|
|
370.2
|
|
|
375.9
|
|
|
1,043.8
|
|
|
1,058.1
|
|
||||
INCOME FROM OPERATIONS
|
|
189.4
|
|
|
219.8
|
|
|
365.1
|
|
|
416.2
|
|
||||
OTHER INCOME (EXPENSE):
|
|
|
|
|
|
|
|
|
||||||||
Investment earnings
|
|
0.7
|
|
|
0.5
|
|
|
2.1
|
|
|
1.5
|
|
||||
Other income
|
|
0.2
|
|
|
2.2
|
|
|
1.7
|
|
|
5.4
|
|
||||
Other expense
|
|
(9.0
|
)
|
|
(11.9
|
)
|
|
(22.9
|
)
|
|
(40.7
|
)
|
||||
Total Other Income (Expense), Net
|
|
(8.1
|
)
|
|
(9.2
|
)
|
|
(19.1
|
)
|
|
(33.8
|
)
|
||||
Interest expense
|
|
33.0
|
|
|
34.3
|
|
|
100.6
|
|
|
105.5
|
|
||||
INCOME BEFORE INCOME TAXES
|
|
148.3
|
|
|
176.3
|
|
|
245.4
|
|
|
276.9
|
|
||||
Income tax expense
|
|
28.0
|
|
|
62.2
|
|
|
80.3
|
|
|
99.0
|
|
||||
NET INCOME
|
|
$
|
120.3
|
|
|
$
|
114.1
|
|
|
$
|
165.1
|
|
|
$
|
177.9
|
|
COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME
|
|
$
|
120.3
|
|
|
$
|
114.1
|
|
|
$
|
165.1
|
|
|
$
|
177.9
|
|
OTHER COMPREHENSIVE INCOME:
|
|
|
|
|
|
|
|
|
||||||||
Derivative hedging activity
|
|
|
|
|
|
|
|
|
||||||||
Reclassification to expenses, net of tax:
|
|
0.8
|
|
|
1.2
|
|
|
2.7
|
|
|
3.8
|
|
||||
Derivative hedging activity, net of tax
|
|
0.8
|
|
|
1.2
|
|
|
2.7
|
|
|
3.8
|
|
||||
Total Other Comprehensive Income
|
|
0.8
|
|
|
1.2
|
|
|
2.7
|
|
|
3.8
|
|
||||
COMPREHENSIVE INCOME
|
|
$
|
121.1
|
|
|
$
|
115.3
|
|
|
$
|
167.8
|
|
|
$
|
181.7
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
|||||||
Consolidated Statements of Cash Flows
|
|||||||
(Unaudited)
|
|||||||
|
|
|
|
||||
Year to Date September 30
|
2018
|
|
2017
|
||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
|
(millions)
|
||||||
Net income
|
$
|
165.1
|
|
|
$
|
177.9
|
|
Adjustments to reconcile income to net cash from operating activities:
|
|
|
|
|
|||
Depreciation and amortization
|
209.0
|
|
|
199.9
|
|
||
Amortization of nuclear fuel
|
18.7
|
|
|
24.1
|
|
||
Amortization of deferred refueling outage
|
10.3
|
|
|
13.7
|
|
||
Net deferred income taxes and credits
|
25.2
|
|
|
32.6
|
|
||
Allowance for equity funds used during construction
|
(1.2
|
)
|
|
(3.4
|
)
|
||
Payments for asset retirement obligations
|
(9.9
|
)
|
|
(14.9
|
)
|
||
Other
|
2.7
|
|
|
6.3
|
|
||
Changes in working capital items:
|
|
|
|
||||
Accounts receivable
|
(41.0
|
)
|
|
(19.5
|
)
|
||
Accounts receivable pledged as collateral
|
—
|
|
|
(20.0
|
)
|
||
Fuel inventory and supplies
|
13.2
|
|
|
3.6
|
|
||
Prepaid expenses and other current assets
|
(3.6
|
)
|
|
8.9
|
|
||
Accounts payable
|
(97.7
|
)
|
|
(75.1
|
)
|
||
Accrued taxes
|
97.9
|
|
|
122.7
|
|
||
Other current liabilities
|
8.5
|
|
|
9.9
|
|
||
Changes in other assets
|
28.3
|
|
|
52.6
|
|
||
Changes in other liabilities
|
79.0
|
|
|
7.3
|
|
||
Cash Flows from Operating Activities
|
504.5
|
|
|
526.6
|
|
||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
|
|
|
|
|
|
||
Additions to property, plant and equipment
|
(310.6
|
)
|
|
(317.1
|
)
|
||
Purchase of securities - trusts
|
(27.9
|
)
|
|
(23.8
|
)
|
||
Sale of securities - trusts
|
22.5
|
|
|
21.3
|
|
||
Other investing activities
|
3.4
|
|
|
0.8
|
|
||
Cash Flows (used in) Investing Activities
|
(312.6
|
)
|
|
(318.8
|
)
|
||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
|
|
|
|
|
|
||
Short term debt, net
|
40.3
|
|
|
(60.9
|
)
|
||
Collateralized short-term borrowings, net
|
—
|
|
|
20.0
|
|
||
Proceeds from long-term debt
|
319.5
|
|
|
296.2
|
|
||
Retirements of long-term debt
|
(373.4
|
)
|
|
(281.0
|
)
|
||
Cash dividends paid
|
(180.0
|
)
|
|
(182.0
|
)
|
||
Other financing activities
|
2.9
|
|
|
—
|
|
||
Cash Flows (used in) Financing Activities
|
(190.7
|
)
|
|
(207.7
|
)
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
1.2
|
|
|
0.1
|
|
||
CASH AND CASH EQUIVALENTS:
|
|
|
|
||||
Beginning of period
|
2.2
|
|
|
4.5
|
|
||
End of period
|
$
|
3.4
|
|
|
$
|
4.6
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
||||||||||||||||||
Consolidated Statements of Changes in Equity
|
||||||||||||||||||
(Unaudited)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Common stock shares
|
|
Common stock
|
|
Retained earnings
|
|
AOCI - Net gains (losses) on cash flow hedges
|
|
Total equity
|
|||||||||
|
(millions, except share amounts)
|
|||||||||||||||||
Balance as of December 31, 2016
|
1
|
|
|
$
|
1,563.1
|
|
|
$
|
982.6
|
|
|
$
|
(4.2
|
)
|
|
$
|
2,541.5
|
|
Net income
|
—
|
|
|
—
|
|
|
177.9
|
|
|
—
|
|
|
177.9
|
|
||||
Cumulative effect of adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
(182.0
|
)
|
|
—
|
|
|
(182.0
|
)
|
||||
Derivative hedging activity, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
3.8
|
|
||||
Balance as of September 30, 2017
|
1
|
|
|
$
|
1,563.1
|
|
|
$
|
977.8
|
|
|
$
|
(0.4
|
)
|
|
$
|
2,540.5
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance as of December 31, 2017
|
1
|
|
|
$
|
1,563.1
|
|
|
$
|
949.7
|
|
|
$
|
0.4
|
|
|
$
|
2,513.2
|
|
Net income
|
—
|
|
|
—
|
|
|
165.1
|
|
|
—
|
|
|
165.1
|
|
||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
(180.0
|
)
|
|
—
|
|
|
(180.0
|
)
|
||||
Derivative hedging activity, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
2.7
|
|
||||
Balance as of September 30, 2018
|
1
|
|
|
$
|
1,563.1
|
|
|
$
|
934.8
|
|
|
$
|
3.1
|
|
|
$
|
2,501.0
|
|
•
|
Westar Energy is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Westar Energy has
one
active wholly-owned subsidiary with significant operations, Kansas Gas and Electric Company (KGE).
|
•
|
KCP&L is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. KCP&L has
one
active wholly-owned subsidiary, Kansas City Power & Light Receivables Company (KCP&L Receivables Company).
|
•
|
KCP&L Greater Missouri Operations Company (GMO) is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO has
one
active wholly-owned subsidiary, GMO Receivables Company.
|
•
|
GPE Transmission Holding Company, LLC (GPETHC) 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. GPETHC accounts for its investment in Transource under the equity method.
|
|
September 30
|
December 31
|
||||||||
|
|
2018
|
|
|
2017
|
|
||||
Evergy
|
|
(millions)
|
|
|||||||
Fuel inventory
|
|
$
|
163.1
|
|
|
|
$
|
94.1
|
|
|
Supplies
|
|
357.8
|
|
|
|
199.5
|
|
|
||
Fuel inventory and supplies
|
|
$
|
520.9
|
|
|
|
$
|
293.6
|
|
|
Westar Energy
|
|
|
|
|||||||
Fuel inventory
|
|
$
|
84.9
|
|
|
|
$
|
94.1
|
|
|
Supplies
|
|
183.8
|
|
|
|
199.5
|
|
|
||
Fuel inventory and supplies
|
|
$
|
268.7
|
|
|
|
$
|
293.6
|
|
|
KCP&L
(a)
|
|
|
|
|
|
|
|
|
||
Fuel inventory
|
|
$
|
54.6
|
|
|
|
$
|
71.0
|
|
|
Supplies
|
|
129.2
|
|
|
|
126.0
|
|
|
||
Fuel inventory and supplies
|
|
$
|
183.8
|
|
|
|
$
|
197.0
|
|
|
September 30, 2018
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
|
||||||
|
|
(millions)
|
||||||||||
Electric plant in service
|
|
$
|
27,290.0
|
|
|
$
|
13,236.1
|
|
|
$
|
10,594.2
|
|
Electric plant acquisition adjustment
|
|
740.6
|
|
|
740.6
|
|
|
—
|
|
|||
Accumulated depreciation
|
|
(10,168.2
|
)
|
|
(4,838.9
|
)
|
|
(4,172.3
|
)
|
|||
Plant in service
|
|
17,862.4
|
|
|
9,137.8
|
|
|
6,421.9
|
|
|||
Construction work in progress
|
|
723.5
|
|
|
443.6
|
|
|
183.4
|
|
|||
Nuclear fuel, net
|
|
109.1
|
|
|
54.1
|
|
|
55.0
|
|
|||
Plant to be retired, net
(b)
|
|
141.0
|
|
|
2.0
|
|
|
—
|
|
|||
Property, plant and equipment, net
|
|
$
|
18,836.0
|
|
|
$
|
9,637.5
|
|
|
$
|
6,660.3
|
|
|
|
|
|
|
|
|
||||||
December 31, 2017
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
||||||
|
|
(millions)
|
||||||||||
Electric plant in service
|
|
$
|
12,954.3
|
|
|
$
|
12,954.3
|
|
|
$
|
10,213.2
|
|
Electric plant acquisition adjustment
|
|
739.0
|
|
|
739.0
|
|
|
—
|
|
|||
Accumulated depreciation
|
|
(4,651.7
|
)
|
|
(4,651.7
|
)
|
|
(4,070.3
|
)
|
|||
Plant in service
|
|
9,041.6
|
|
|
9,041.6
|
|
|
6,142.9
|
|
|||
Construction work in progress
|
|
434.9
|
|
|
434.9
|
|
|
350.3
|
|
|||
Nuclear fuel, net
|
|
71.4
|
|
|
71.4
|
|
|
72.4
|
|
|||
Plant to be retired, net
(b)
|
|
5.9
|
|
|
5.9
|
|
|
—
|
|
|||
Property, plant and equipment, net
|
|
$
|
9,553.8
|
|
|
$
|
9,553.8
|
|
|
$
|
6,565.6
|
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income
|
(millions, except per share amounts)
|
||||||||||||||
Net income
|
$
|
357.6
|
|
|
$
|
160.7
|
|
|
$
|
524.9
|
|
|
$
|
300.2
|
|
Less: net income attributable to noncontrolling interests
|
2.6
|
|
|
2.4
|
|
|
7.6
|
|
|
10.2
|
|
||||
Net income attributable to Evergy, Inc.
|
355.0
|
|
|
158.3
|
|
|
517.3
|
|
|
290.0
|
|
||||
Less: net income allocated to RSUs
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.5
|
|
||||
Net income allocated to common stock
|
$
|
354.8
|
|
|
$
|
158.0
|
|
|
$
|
516.9
|
|
|
$
|
289.5
|
|
Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average equivalent common shares outstanding - basic
|
268.6
|
|
|
142.5
|
|
|
197.9
|
|
|
142.5
|
|
||||
Add: effect of dilutive securities
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Weighted average equivalent common shares outstanding - diluted
|
268.8
|
|
|
142.5
|
|
|
198.0
|
|
|
142.5
|
|
||||
Basic and Diluted EPS
|
$
|
1.32
|
|
|
$
|
1.11
|
|
|
$
|
2.61
|
|
|
$
|
2.03
|
|
Year to Date September 30
|
|
2018
|
|
2017
|
||||
Evergy
|
|
(millions)
|
||||||
Cash paid for (received from):
|
|
|
|
|
||||
Interest, net of amounts capitalized
|
|
$
|
148.7
|
|
|
$
|
109.0
|
|
Interest of VIEs
|
|
2.3
|
|
|
3.1
|
|
||
Income taxes, net of refunds
|
|
0.6
|
|
|
(12.6
|
)
|
||
Non-cash investing transactions:
|
|
|
|
|
||||
Property, plant and equipment additions (reductions)
|
|
(24.8
|
)
|
|
112.5
|
|
||
Deconsolidation of property, plant and equipment of VIE
|
|
—
|
|
|
(72.9
|
)
|
||
Non-cash financing transactions:
|
|
|
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
|
0.4
|
|
|
4.9
|
|
||
Deconsolidation of VIE
|
|
—
|
|
|
(83.1
|
)
|
||
Assets acquired through capital leases
|
|
0.1
|
|
|
4.6
|
|
||
Westar Energy
|
|
|
||||||
Cash paid for (received from):
|
|
|
|
|
||||
Interest, net of amounts capitalized
|
|
$
|
110.5
|
|
|
$
|
109.0
|
|
Interest of VIEs
|
|
2.3
|
|
|
3.1
|
|
||
Income taxes, net of refunds
|
|
—
|
|
|
(12.6
|
)
|
||
Non-cash investing transactions:
|
|
|
|
|
||||
Property, plant and equipment additions (reductions)
|
|
(42.0
|
)
|
|
112.5
|
|
||
Deconsolidation of property, plant and equipment of VIE
|
|
—
|
|
|
(72.9
|
)
|
||
Non-cash financing transactions:
|
|
|
|
|
||||
Issuance of stock for compensation and reinvested dividends
|
|
—
|
|
|
4.9
|
|
||
Deconsolidation of VIE
|
|
—
|
|
|
(83.1
|
)
|
||
Assets acquired through capital leases
|
|
0.1
|
|
|
4.6
|
|
||
KCP&L
(a)
|
|
|
||||||
Cash paid for (received from):
|
|
|
|
|
||||
Interest, net of amounts capitalized
|
|
$
|
87.6
|
|
|
$
|
88.6
|
|
Income taxes, net of refunds
|
|
28.4
|
|
|
4.9
|
|
||
Non-cash investing transactions:
|
|
|
|
|
||||
Property, plant and equipment additions
|
|
15.2
|
|
|
15.5
|
|
|
Three Months Ended
|
|
Year to Date
|
||||||||||||||||||||
|
September 30, 2017
|
|
September 30, 2017
|
||||||||||||||||||||
|
As Previously Reported
(b)
|
|
Effect of
Change
|
|
As Reported
|
|
As Previously Reported
(b)
|
|
Effect of
Change
|
|
As Reported
|
||||||||||||
Evergy
|
(millions)
|
||||||||||||||||||||||
Operating and maintenance expense
|
$
|
145.5
|
|
|
$
|
(4.9
|
)
|
|
$
|
140.6
|
|
|
$
|
430.6
|
|
|
$
|
(15.0
|
)
|
|
$
|
415.6
|
|
Total operating expenses
|
534.3
|
|
|
(4.9
|
)
|
|
529.4
|
|
|
1,434.7
|
|
|
(15.0
|
)
|
|
1,419.7
|
|
||||||
Income from operations
|
260.0
|
|
|
4.9
|
|
|
264.9
|
|
|
541.5
|
|
|
15.0
|
|
|
556.5
|
|
||||||
Other expense
|
(6.6
|
)
|
|
(4.9
|
)
|
|
(11.5
|
)
|
|
(14.6
|
)
|
|
(15.0
|
)
|
|
(29.6
|
)
|
||||||
Total other income (expense), net
|
(1.7
|
)
|
|
(4.9
|
)
|
|
(6.6
|
)
|
|
(5.4
|
)
|
|
(15.0
|
)
|
|
(20.4
|
)
|
||||||
Westar Energy
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and maintenance expense
|
$
|
145.5
|
|
|
$
|
(4.9
|
)
|
|
$
|
140.6
|
|
|
$
|
430.6
|
|
|
$
|
(15.0
|
)
|
|
$
|
415.6
|
|
Total operating expenses
|
534.3
|
|
|
(4.9
|
)
|
|
529.4
|
|
|
1,434.7
|
|
|
(15.0
|
)
|
|
1,419.7
|
|
||||||
Income from operations
|
260.0
|
|
|
4.9
|
|
|
264.9
|
|
|
541.5
|
|
|
15.0
|
|
|
556.5
|
|
||||||
Other expense
|
(6.6
|
)
|
|
(4.9
|
)
|
|
(11.5
|
)
|
|
(14.6
|
)
|
|
(15.0
|
)
|
|
(29.6
|
)
|
||||||
Total other income (expense), net
|
(1.7
|
)
|
|
(4.9
|
)
|
|
(6.6
|
)
|
|
(5.4
|
)
|
|
(15.0
|
)
|
|
(20.4
|
)
|
||||||
KCP&L
(a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating and maintenance expense
|
$
|
124.2
|
|
|
$
|
(9.9
|
)
|
|
$
|
114.3
|
|
|
$
|
385.0
|
|
|
$
|
(34.3
|
)
|
|
$
|
350.7
|
|
Total operating expenses
|
385.8
|
|
|
(9.9
|
)
|
|
375.9
|
|
|
1,092.4
|
|
|
(34.3
|
)
|
|
1,058.1
|
|
||||||
Income from operations
|
209.9
|
|
|
9.9
|
|
|
219.8
|
|
|
381.9
|
|
|
34.3
|
|
|
416.2
|
|
||||||
Other expense
|
(2.0
|
)
|
|
(9.9
|
)
|
|
(11.9
|
)
|
|
(6.4
|
)
|
|
(34.3
|
)
|
|
(40.7
|
)
|
||||||
Total other income (expense), net
|
0.7
|
|
|
(9.9
|
)
|
|
(9.2
|
)
|
|
0.5
|
|
|
(34.3
|
)
|
|
(33.8
|
)
|
•
|
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 Westar Energy's and KCP&L's current rate cases in Kansas. Of this total,
$23.1 million
of the credits relate to Westar Energy customers and the remaining
$7.5 million
of credits relate to KCP&L 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
|
•
|
Provide for the inclusion of a total of
$30.0 million
of merger-related savings in Westar Energy's and KCP&L's current rate cases in Kansas. Of this total,
$22.5 million
of the savings are attributable to Westar Energy with the remaining
$7.5 million
of savings attributable to KCP&L's Kansas jurisdiction.
|
•
|
A
five
year base rate moratorium for Westar Energy and KCP&L in Kansas that will commence following the conclusion of KCP&L's current Kansas rate case, expected in December 2018. The moratorium is subject to certain conditions and does not include Westar Energy's or KCP&L's fuel recovery mechanisms and certain other cost recovery mechanisms in Kansas.
|
•
|
Require both Westar Energy and KCP&L 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 (ERSP) for the years 2019 through 2022, which may result in Westar Energy and/or KCP&L 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 territories of Westar Energy and KCP&L at levels equal to or greater than their respective 2015 levels for
5 years
following the closing of the merger.
|
•
|
Commit that Westar Energy's and KCP&L's retail electric base rates will not increase as a result of the merger.
|
•
|
Allow Westar Energy and KCP&L to recover a total of
$30.9 million
of merger transition costs consisting of
$23.2 million
for Westar Energy and
$7.7 million
for KCP&L's Kansas jurisdiction. Westar Energy and KCP&L have recorded these amounts as regulatory assets and the settlement agreement stipulates that they will be recovered over a
ten
year period.
|
•
|
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 KCP&L Missouri customers and the remaining
$14.2 million
of credits relate to GMO customers.
|
•
|
Commit that KCP&L's and GMO'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 KCP&L and GMO 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 KCP&L's and GMO's current rate cases, consisting of
$9.7 million
for KCP&L's Missouri jurisdiction and
$7.2 million
for GMO. KCP&L and GMO have recorded these amounts as regulatory assets and it is expected that they will be recovered over a
ten
year period.
|
Description
|
Income Statement Line Item
|
Expected Payment Period
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
|
||||||
|
|
|
|
(millions)
|
||||||||||
One-time bill credits
|
Operating revenues
|
2018 - 2019
|
|
$
|
(59.7
|
)
|
|
$
|
(23.1
|
)
|
|
$
|
(22.4
|
)
|
Annual bill credits
|
Operating revenues
|
2019 - 2022
|
|
(7.6
|
)
|
|
(5.8
|
)
|
|
(1.9
|
)
|
|||
Total impact to operating revenues
|
|
|
|
$
|
(67.3
|
)
|
|
$
|
(28.9
|
)
|
|
$
|
(24.3
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Charitable contributions and community support
|
Operating and maintenance
|
2018 - 2027
|
|
$
|
24.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Voluntary severance and accelerated equity compensation
|
Operating and maintenance
|
2018 - 2019
|
|
40.7
|
|
|
40.7
|
|
|
—
|
|
|||
Other transaction and transition costs
|
Operating and maintenance
|
2018
|
|
47.0
|
|
|
20.4
|
|
|
1.7
|
|
|||
Reallocation and deferral of merger transition costs
|
Operating and maintenance
|
n/a
|
|
(47.8
|
)
|
|
(13.3
|
)
|
|
(23.9
|
)
|
|||
Total impact to operating and maintenance expense
|
|
|
|
$
|
64.6
|
|
|
$
|
47.8
|
|
|
$
|
(22.2
|
)
|
Total
|
|
|
|
$
|
(131.9
|
)
|
|
$
|
(76.7
|
)
|
|
$
|
(2.1
|
)
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(millions, except per share amounts)
|
||||||||||||||
Operating revenues
|
$
|
1,582.5
|
|
|
$
|
1,651.5
|
|
|
$
|
4,134.8
|
|
|
$
|
4,086.7
|
|
Net income attributable to Evergy, Inc.
|
360.2
|
|
|
321.8
|
|
|
694.5
|
|
|
543.3
|
|
||||
Basic earnings per common share
|
$
|
1.34
|
|
|
$
|
1.19
|
|
|
$
|
2.56
|
|
|
$
|
2.00
|
|
Diluted earnings per common share
|
$
|
1.34
|
|
|
$
|
1.19
|
|
|
$
|
2.55
|
|
|
$
|
2.00
|
|
Three Months Ended September 30, 2018
|
Evergy
|
|
Westar Energy
|
|
KCP&L
|
||||||
Revenues
|
(millions)
|
||||||||||
Residential
|
$
|
647.1
|
|
|
$
|
270.5
|
|
|
$
|
243.5
|
|
Commercial
|
530.5
|
|
|
217.4
|
|
|
231.1
|
|
|||
Industrial
|
173.4
|
|
|
111.9
|
|
|
39.1
|
|
|||
Other retail
|
10.9
|
|
|
5.4
|
|
|
2.7
|
|
|||
Total electric retail
|
$
|
1,361.9
|
|
|
$
|
605.2
|
|
|
$
|
516.4
|
|
Wholesale
|
118.5
|
|
|
82.4
|
|
|
29.9
|
|
|||
Transmission
|
80.6
|
|
|
72.2
|
|
|
3.8
|
|
|||
Industrial steam and other
|
6.0
|
|
|
1.5
|
|
|
0.7
|
|
|||
Total revenue from contracts with customers
|
$
|
1,567.0
|
|
|
$
|
761.3
|
|
|
$
|
550.8
|
|
Other
|
15.5
|
|
|
3.5
|
|
|
8.8
|
|
|||
Operating revenues
|
$
|
1,582.5
|
|
|
$
|
764.8
|
|
|
$
|
559.6
|
|
|
|
|
|
|
|
||||||
Year to Date September 30, 2018
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
||||||
Revenues
|
(millions)
|
||||||||||
Residential
|
$
|
1,169.4
|
|
|
$
|
671.9
|
|
|
$
|
585.4
|
|
Commercial
|
945.0
|
|
|
542.8
|
|
|
609.2
|
|
|||
Industrial
|
375.5
|
|
|
297.2
|
|
|
105.4
|
|
|||
Other retail
|
21.5
|
|
|
15.3
|
|
|
7.7
|
|
|||
Total electric retail
|
$
|
2,511.4
|
|
|
$
|
1,527.2
|
|
|
$
|
1,307.7
|
|
Wholesale
|
302.4
|
|
|
263.7
|
|
|
38.5
|
|
|||
Transmission
|
227.6
|
|
|
216.3
|
|
|
11.0
|
|
|||
Industrial steam and other
|
10.0
|
|
|
4.6
|
|
|
3.0
|
|
|||
Total revenue from contracts with customers
|
$
|
3,051.4
|
|
|
$
|
2,011.8
|
|
|
$
|
1,360.2
|
|
Other
|
24.7
|
|
|
4.1
|
|
|
48.7
|
|
|||
Operating revenues
|
$
|
3,076.1
|
|
|
$
|
2,015.9
|
|
|
$
|
1,408.9
|
|
|
September 30
|
December 31
|
||||||||
|
|
2018
|
|
|
2017
|
|
||||
Evergy
|
|
(millions)
|
|
|||||||
Customer accounts receivable - billed
|
|
$
|
231.7
|
|
|
|
$
|
165.4
|
|
|
Customer accounts receivable - unbilled
|
|
191.1
|
|
|
|
76.6
|
|
|
||
Other receivables
|
|
82.4
|
|
|
|
55.4
|
|
|
||
Allowance for doubtful accounts
|
|
(8.7
|
)
|
|
|
(6.7
|
)
|
|
||
Total
|
|
$
|
496.5
|
|
|
|
$
|
290.7
|
|
|
Westar Energy
|
|
|
|
|||||||
Customer accounts receivable - billed
|
|
$
|
194.0
|
|
|
|
$
|
165.4
|
|
|
Customer accounts receivable - unbilled
|
|
96.7
|
|
|
|
76.6
|
|
|
||
Other receivables
|
|
60.7
|
|
|
|
55.4
|
|
|
||
Allowance for doubtful accounts
|
|
(3.9
|
)
|
|
|
(6.7
|
)
|
|
||
Total
|
|
$
|
347.5
|
|
|
|
$
|
290.7
|
|
|
KCP&L
(a)
|
|
|
|
|
|
|
|
|
||
Customer accounts receivable - billed
|
|
$
|
25.3
|
|
|
|
$
|
1.6
|
|
|
Customer accounts receivable - unbilled
|
|
66.6
|
|
|
|
67.6
|
|
|
||
Other receivables
|
|
14.5
|
|
|
|
39.3
|
|
|
||
Allowance for doubtful accounts
|
|
(3.5
|
)
|
|
|
(2.2
|
)
|
|
||
Total
|
|
$
|
102.9
|
|
|
|
$
|
106.3
|
|
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(millions)
|
||||||||||||||
Evergy
|
$
|
4.5
|
|
|
$
|
2.0
|
|
|
$
|
10.6
|
|
|
$
|
5.4
|
|
Westar Energy
|
1.1
|
|
|
2.0
|
|
|
6.2
|
|
|
5.4
|
|
||||
KCP&L
(a)
|
3.9
|
|
|
2.8
|
|
|
7.5
|
|
|
6.0
|
|
|
|
Evergy
|
|
|
Westar Energy
|
|
|
KCP&L
(a)
|
|
|||||||||||||||||||||
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||||||||||
|
|
(millions)
|
|
|||||||||||||||||||||||||||
Beginning balance, January 1
|
|
$
|
405.1
|
|
|
|
$
|
324.0
|
|
|
|
$
|
405.1
|
|
|
|
$
|
324.0
|
|
|
|
$
|
266.3
|
|
|
|
$
|
278.0
|
|
|
Liabilities assumed upon merger with Great Plains Energy
|
|
412.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
||||||
Liabilities incurred during the year
|
|
7.4
|
|
|
|
13.5
|
|
|
|
7.4
|
|
|
|
13.5
|
|
|
|
—
|
|
|
|
—
|
|
|
||||||
Revision in timing and/or estimates
|
|
(138.6
|
)
|
|
|
66.8
|
|
|
|
(133.0
|
)
|
|
|
66.8
|
|
|
|
(5.7
|
)
|
|
|
0.3
|
|
|
||||||
Settlements
|
|
(15.9
|
)
|
|
|
(16.0
|
)
|
|
|
(10.6
|
)
|
|
|
(16.0
|
)
|
|
|
(9.9
|
)
|
|
|
(25.5
|
)
|
|
||||||
Accretion
|
|
22.1
|
|
|
|
16.8
|
|
|
|
14.0
|
|
|
|
16.8
|
|
|
|
12.6
|
|
|
|
13.5
|
|
|
||||||
Ending balance
|
|
$
|
692.3
|
|
|
|
$
|
405.1
|
|
|
|
$
|
282.9
|
|
|
|
$
|
405.1
|
|
|
|
$
|
263.3
|
|
|
|
$
|
266.3
|
|
|
Less: current portion
|
|
(69.6
|
)
|
|
|
(25.1
|
)
|
|
|
(25.1
|
)
|
|
|
(25.1
|
)
|
|
|
(40.6
|
)
|
|
|
(34.9
|
)
|
|
||||||
Total noncurrent asset retirement obligation
|
|
$
|
622.7
|
|
|
|
$
|
380.0
|
|
|
|
$
|
257.8
|
|
|
|
$
|
380.0
|
|
|
|
$
|
222.7
|
|
|
|
$
|
231.4
|
|
|
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||||||||||
Three Months Ended September 30, 2018
|
Evergy
|
|
Westar Energy
|
|
KCP&L
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
|
||||||||||||
Components of net periodic benefit costs
|
(millions)
|
||||||||||||||||||||||
Service cost
|
$
|
20.2
|
|
|
$
|
8.0
|
|
|
$
|
9.1
|
|
|
$
|
0.7
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
Interest cost
|
26.3
|
|
|
12.7
|
|
|
9.4
|
|
|
2.5
|
|
|
1.2
|
|
|
0.8
|
|
||||||
Expected return on plan assets
|
(27.0
|
)
|
|
(13.9
|
)
|
|
(10.6
|
)
|
|
(2.5
|
)
|
|
(1.8
|
)
|
|
(0.4
|
)
|
||||||
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
||||||
Recognized net actuarial (gain)/loss
|
8.1
|
|
|
8.1
|
|
|
8.4
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
||||||
Net periodic benefit costs before regulatory adjustment
|
27.9
|
|
|
15.1
|
|
|
16.5
|
|
|
0.7
|
|
|
(0.2
|
)
|
|
0.8
|
|
||||||
Regulatory adjustment
|
2.6
|
|
|
2.8
|
|
|
0.7
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
0.1
|
|
||||||
Net periodic benefit costs
|
$
|
30.5
|
|
|
$
|
17.9
|
|
|
$
|
17.2
|
|
|
$
|
0.3
|
|
|
$
|
(0.6
|
)
|
|
$
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||||||||||
Year to Date September 30, 2018
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
||||||||||||
Components of net periodic benefit costs
|
(millions)
|
||||||||||||||||||||||
Service cost
|
$
|
40.4
|
|
|
$
|
24.1
|
|
|
$
|
27.4
|
|
|
$
|
1.5
|
|
|
$
|
1.0
|
|
|
$
|
1.1
|
|
Interest cost
|
56.2
|
|
|
38.1
|
|
|
28.3
|
|
|
5.4
|
|
|
3.7
|
|
|
2.5
|
|
||||||
Expected return on plan assets
|
(59.3
|
)
|
|
(41.9
|
)
|
|
(31.7
|
)
|
|
(6.2
|
)
|
|
(5.2
|
)
|
|
(1.4
|
)
|
||||||
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
0.6
|
|
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
|
0.3
|
|
|
—
|
|
||||||
Recognized net actuarial (gain)/loss
|
24.4
|
|
|
24.4
|
|
|
25.1
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
||||||
Net periodic benefit costs before regulatory adjustment
|
62.3
|
|
|
45.2
|
|
|
49.5
|
|
|
0.6
|
|
|
(0.6
|
)
|
|
2.1
|
|
||||||
Regulatory adjustment
|
8.4
|
|
|
8.4
|
|
|
2.1
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
|
(0.2
|
)
|
||||||
Net periodic benefit costs
|
$
|
70.7
|
|
|
$
|
53.6
|
|
|
$
|
51.6
|
|
|
$
|
(0.7
|
)
|
|
$
|
(1.9
|
)
|
|
$
|
1.9
|
|
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||||||||||
Three Months Ended September 30, 2017
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
||||||||||||
Components of net periodic benefit costs
|
(millions)
|
||||||||||||||||||||||
Service cost
|
$
|
7.2
|
|
|
$
|
7.2
|
|
|
$
|
8.1
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
Interest cost
|
13.1
|
|
|
13.1
|
|
|
9.8
|
|
|
1.4
|
|
|
1.4
|
|
|
0.9
|
|
||||||
Expected return on plan assets
|
(13.4
|
)
|
|
(13.4
|
)
|
|
(9.5
|
)
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|
(0.4
|
)
|
||||||
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
||||||
Recognized net actuarial (gain)/loss
|
6.7
|
|
|
6.7
|
|
|
8.9
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
||||||
Net periodic benefit costs before regulatory adjustment
|
13.7
|
|
|
13.7
|
|
|
17.5
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
0.8
|
|
||||||
Regulatory adjustment
|
3.6
|
|
|
3.6
|
|
|
0.2
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.1
|
)
|
||||||
Net periodic benefit costs
|
$
|
17.3
|
|
|
$
|
17.3
|
|
|
$
|
17.7
|
|
|
$
|
(0.6
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
0.7
|
|
(a)
KCP&L amounts are not included in consolidated Evergy for the three months ended September 30, 2017.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pension Benefits
|
|
Post-Retirement Benefits
|
||||||||||||||||||||
Year to Date September 30, 2017
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
|
Evergy
|
|
Westar Energy
|
|
KCP&L
(a)
|
||||||||||||
Components of net periodic benefit costs
|
(millions)
|
||||||||||||||||||||||
Service cost
|
$
|
21.5
|
|
|
$
|
21.5
|
|
|
$
|
24.4
|
|
|
$
|
0.9
|
|
|
$
|
0.9
|
|
|
$
|
1.1
|
|
Interest cost
|
39.3
|
|
|
39.3
|
|
|
29.4
|
|
|
4.2
|
|
|
4.2
|
|
|
2.8
|
|
||||||
Expected return on plan assets
|
(40.2
|
)
|
|
(40.2
|
)
|
|
(28.6
|
)
|
|
(5.2
|
)
|
|
(5.2
|
)
|
|
(1.3
|
)
|
||||||
Amortization of unrecognized:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
0.5
|
|
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
|
0.3
|
|
|
—
|
|
||||||
Recognized net actuarial (gain)/loss
|
20.2
|
|
|
20.2
|
|
|
26.7
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(0.3
|
)
|
||||||
Net periodic benefit costs before regulatory adjustment
|
41.3
|
|
|
41.3
|
|
|
52.3
|
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
2.3
|
|
||||||
Regulatory adjustment
|
10.6
|
|
|
10.6
|
|
|
4.3
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|
0.9
|
|
||||||
Net periodic benefit costs
|
$
|
51.9
|
|
|
$
|
51.9
|
|
|
$
|
56.6
|
|
|
$
|
(1.8
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
3.2
|
|
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
|
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Evergy
|
|
(millions)
|
||||||||||||||
Equity compensation expense
|
|
$
|
4.3
|
|
|
$
|
2.1
|
|
|
$
|
26.0
|
|
|
$
|
6.7
|
|
Income tax (expense) benefit
|
|
(1.5
|
)
|
|
0.8
|
|
|
1.9
|
|
|
2.6
|
|
||||
Westar Energy
|
|
|
|
|
|
|
|
|
||||||||
Equity compensation expense
|
|
$
|
2.0
|
|
|
$
|
2.1
|
|
|
$
|
22.6
|
|
|
$
|
6.7
|
|
Income tax (expense) benefit
|
|
(1.0
|
)
|
|
0.8
|
|
|
2.1
|
|
|
2.6
|
|
||||
KCP&L
(a)
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity compensation expense
|
|
$
|
1.6
|
|
|
$
|
1.2
|
|
|
$
|
4.8
|
|
|
$
|
2.9
|
|
Income tax (expense) benefit
|
|
(0.7
|
)
|
|
0.4
|
|
|
(0.1
|
)
|
|
1.2
|
|
|
Performance
Shares
|
|
Grant Date
Fair Value*
|
|||||||
Beginning balance January 1, 2018
|
|
—
|
|
|
|
|
$
|
—
|
|
|
Converted Great Plains Energy awards upon merger
|
|
351,708
|
|
|
|
|
63.79
|
|
|
|
Forfeited
|
|
(3,212
|
)
|
|
|
|
63.44
|
|
|
|
Ending balance September 30, 2018
|
|
348,496
|
|
|
|
|
63.80
|
|
|
|
Nonvested
Restricted Stock
|
|
Grant Date
Fair Value*
|
|||||||
Beginning balance January 1, 2018
|
|
—
|
|
|
|
|
$
|
—
|
|
|
Converted Great Plains Energy awards upon merger
|
|
122,505
|
|
|
|
|
54.05
|
|
|
|
Vested
|
|
(4,222
|
)
|
|
|
|
54.50
|
|
|
|
Forfeited
|
|
(1,070
|
)
|
|
|
|
54.04
|
|
|
|
Ending balance September 30, 2018
|
|
117,213
|
|
|
|
|
54.03
|
|
|
|
Nonvested
Restricted Share Units
|
|
Grant Date
Fair Value*
|
|||||||
Beginning balance January 1, 2018
|
|
255,964
|
|
|
|
|
$
|
46.09
|
|
|
Granted
|
|
222,465
|
|
|
|
|
52.16
|
|
|
|
Converted Great Plains Energy awards upon merger
|
|
82,331
|
|
|
|
|
53.77
|
|
|
|
Vested
|
|
(342,599
|
)
|
|
|
|
46.81
|
|
|
|
Forfeited
|
|
(905
|
)
|
|
|
|
50.73
|
|
|
|
Ending balance September 30, 2018
|
|
217,256
|
|
|
|
|
54.07
|
|
|
|
|
Amounts Drawn
|
|
|
|
||||||||||||
|
Credit Facility
|
Commercial Paper
|
Letters of Credit
|
Cash Borrowings
|
Available Borrowings
|
|
Weighted Average Interest Rate on Short-Term Borrowings
|
||||||||||
September 30, 2018
|
(millions)
|
|
|
||||||||||||||
Evergy, Inc.
|
$
|
450.0
|
|
n/a
|
$
|
1.0
|
|
$
|
—
|
|
$
|
449.0
|
|
|
—%
|
||
Westar Energy
|
1,000.0
|
|
326.3
|
|
18.3
|
|
—
|
|
655.4
|
|
|
2.42%
|
|||||
KCP&L
|
600.0
|
|
209.2
|
|
2.7
|
|
—
|
|
388.1
|
|
|
2.50%
|
|||||
GMO
|
450.0
|
|
140.4
|
|
2.1
|
|
—
|
|
307.5
|
|
|
2.46%
|
|||||
Evergy
|
$
|
2,500.0
|
|
$
|
675.9
|
|
$
|
24.1
|
|
$
|
—
|
|
$
|
1,800.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||
Westar Energy
(b)
|
$
|
979.3
|
|
$
|
275.7
|
|
$
|
11.8
|
|
$
|
—
|
|
$
|
691.8
|
|
|
1.83%
|
KCP&L
(a)
|
600.0
|
|
167.5
|
|
2.7
|
|
—
|
|
429.8
|
|
|
1.95%
|
|||||
Evergy
|
979.3
|
|
275.7
|
|
11.8
|
|
—
|
|
691.8
|
|
|
1.83%
|
•
|
$350.0 million
of
4.85%
unsecured Senior Notes; and
|
•
|
$287.5 million
of
5.292%
unsecured Senior Notes.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
||||||||
Long-term debt
(a)
|
|
(millions)
|
||||||||||||||
Evergy
(b)
|
|
$
|
7,349.4
|
|
|
$
|
7,362.2
|
|
|
$
|
3,687.6
|
|
|
$
|
4,010.6
|
|
Westar Energy
|
|
3,689.7
|
|
|
3,750.8
|
|
|
3,687.6
|
|
|
4,010.6
|
|
||||
KCP&L
(c)
|
|
2,529.9
|
|
|
2,611.3
|
|
|
2,582.2
|
|
|
2,799.1
|
|
||||
Long-term debt of variable interest entities
(a)
|
|
|
|
|
|
|
|
|
||||||||
Evergy
|
|
$
|
81.4
|
|
|
$
|
80.7
|
|
|
$
|
109.9
|
|
|
$
|
110.8
|
|
Westar Energy
|
|
81.4
|
|
|
80.7
|
|
|
109.9
|
|
|
110.8
|
|
Description
|
September 30
2018 |
|
Level 1
|
|
Level 2
|
Level 3
|
NAV
|
||||||||||||||||||
Westar Energy
|
|
(millions)
|
|||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear decommissioning trust
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic equity funds
|
|
$
|
80.9
|
|
|
|
$
|
74.7
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
6.2
|
|
|
International equity funds
|
|
42.3
|
|
|
|
42.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Core bond fund
|
|
36.8
|
|
|
|
36.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
High-yield bond fund
|
|
20.1
|
|
|
|
20.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Emerging markets bond fund
|
|
15.5
|
|
|
|
15.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Combination debt/equity/other fund
|
|
14.8
|
|
|
|
14.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Alternative investments fund
|
|
23.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23.6
|
|
|
|||||
Real estate securities fund
|
|
11.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.5
|
|
|
|||||
Cash equivalents
|
|
0.3
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total nuclear decommissioning trust
|
|
245.8
|
|
|
|
204.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
41.3
|
|
|
|||||
Rabbi trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core bond fund
|
|
24.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24.9
|
|
|
|||||
Combination debt/equity/other fund
|
|
6.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.2
|
|
|
|||||
Cash equivalents
|
|
0.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total rabbi trust
|
|
31.2
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31.1
|
|
|
|||||
Total
|
|
$
|
277.0
|
|
|
|
$
|
204.6
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
72.4
|
|
|
KCP&L
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear decommissioning trust
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
195.2
|
|
|
|
$
|
195.2
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. Treasury
|
|
39.5
|
|
|
|
39.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
U.S. Agency
|
|
0.4
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
State and local obligations
|
|
2.1
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Corporate bonds
|
|
32.3
|
|
|
|
—
|
|
|
|
32.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Foreign governments
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Cash equivalents
|
|
1.5
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Other
|
|
1.1
|
|
|
|
1.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total nuclear decommissioning trust
|
|
272.2
|
|
|
|
237.3
|
|
|
|
34.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Self-insured health plan trust
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
0.5
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Debt securities
|
|
3.1
|
|
|
|
0.3
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Cash and cash equivalents
|
|
9.4
|
|
|
|
9.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total self-insured health plan trust
|
|
13.0
|
|
|
|
10.2
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total
|
|
$
|
285.2
|
|
|
|
$
|
247.5
|
|
|
|
$
|
37.7
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Other Evergy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rabbi trusts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income fund
|
|
$
|
13.5
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
13.5
|
|
|
Total rabbi trusts
|
|
$
|
13.5
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
13.5
|
|
|
Evergy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nuclear decommissioning trust
(a)
|
|
$
|
518.0
|
|
|
|
$
|
441.8
|
|
|
|
$
|
34.9
|
|
|
|
$
|
—
|
|
|
|
$
|
41.3
|
|
|
Rabbi trusts
|
|
44.7
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44.6
|
|
|
|||||
Self-insured health plan trust
(b)
|
|
13.0
|
|
|
|
10.2
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total
|
|
$
|
575.7
|
|
|
|
$
|
452.1
|
|
|
|
$
|
37.7
|
|
|
|
$
|
—
|
|
|
|
$
|
85.9
|
|
|
Description
|
December 31
2017 |
Level 1
|
Level 2
|
Level 3
|
NAV
|
||||||||||||||||||||
Westar Energy
|
|
(millions)
|
|||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear decommissioning trust
(a)(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic equity funds
|
|
$
|
73.8
|
|
|
|
$
|
—
|
|
|
|
$
|
68.7
|
|
|
|
$
|
—
|
|
|
|
$
|
5.1
|
|
|
International equity funds
|
|
47.9
|
|
|
|
—
|
|
|
|
47.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Core bond fund
|
|
33.3
|
|
|
|
—
|
|
|
|
33.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
High-yield bond fund
|
|
18.1
|
|
|
|
—
|
|
|
|
18.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Emerging markets bond fund
|
|
17.3
|
|
|
|
—
|
|
|
|
17.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Combination debt/equity/other fund
|
|
14.1
|
|
|
|
—
|
|
|
|
14.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Alternative investments fund
|
|
21.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21.7
|
|
|
|||||
Real estate securities fund
|
|
10.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10.8
|
|
|
|||||
Cash equivalents
|
|
0.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total nuclear decommissioning trust
|
|
237.1
|
|
|
|
0.1
|
|
|
|
199.4
|
|
|
|
—
|
|
|
|
37.6
|
|
|
|||||
Rabbi trust
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core bond fund
|
|
27.3
|
|
|
|
—
|
|
|
|
27.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Combination debt/equity/other fund
|
|
6.8
|
|
|
|
—
|
|
|
|
6.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Cash equivalents
|
|
0.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total rabbi trust
|
|
34.3
|
|
|
|
0.2
|
|
|
|
34.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total
|
|
$
|
271.4
|
|
|
|
$
|
0.3
|
|
|
|
$
|
233.5
|
|
|
|
$
|
—
|
|
|
|
$
|
37.6
|
|
|
KCP&L
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nuclear decommissioning trust
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
$
|
183.8
|
|
|
|
$
|
183.8
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury
|
|
35.3
|
|
|
|
35.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
U.S. Agency
|
|
0.4
|
|
|
|
—
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
State and local obligations
|
|
2.1
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Corporate bonds
|
|
34.1
|
|
|
|
—
|
|
|
|
34.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Foreign governments
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Cash equivalents
|
|
2.5
|
|
|
|
2.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Other
|
|
0.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total nuclear decommissioning trust
|
|
258.4
|
|
|
|
221.7
|
|
|
|
36.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Self-insured health plan trust
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity securities
|
|
0.5
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Debt securities
|
|
2.7
|
|
|
|
0.3
|
|
|
|
2.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Cash and cash equivalents
|
|
7.7
|
|
|
|
7.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total self-insured health plan trust
|
|
10.9
|
|
|
|
8.5
|
|
|
|
2.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total
|
|
$
|
269.3
|
|
|
|
$
|
230.2
|
|
|
|
$
|
39.1
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Evergy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nuclear decommissioning trust
(a)(c)
|
|
$
|
237.1
|
|
|
|
$
|
0.1
|
|
|
|
$
|
199.4
|
|
|
|
$
|
—
|
|
|
|
$
|
37.6
|
|
|
Rabbi trust
(c)
|
|
34.3
|
|
|
|
0.2
|
|
|
|
34.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|||||
Total
|
|
$
|
271.4
|
|
|
|
$
|
0.3
|
|
|
|
$
|
233.5
|
|
|
|
$
|
—
|
|
|
|
$
|
37.6
|
|
|
(a)
|
Fair value is based on quoted market prices of the investments held by the trust and/or valuation models.
|
(b)
|
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.
|
(c)
|
In the second quarter of 2018, Evergy and Westar Energy re-evaluated the classification, within the fair value hierarchy, of their various fund investments within both Westar Energy's nuclear decommissioning trust and rabbi trusts. As a result, Evergy and Westar Energy determined that certain fund investments within the nuclear decommissioning trust in the amount of
$199.4 million
as of December 31, 2017, should have been classified as Level 1, instead of Level 2. This determination is based on the fact that the fair value of these funds is based on daily published prices at which Evergy and Westar Energy are able to redeem their investments without restriction on a daily basis. Evergy and Westar Energy also determined that certain fund investments within their rabbi trusts in the amount of
$34.1 million
as of December 31, 2017, should have been measured using the NAV per share (or its equivalent) practical expedient, instead of as a Level 2 investment. This determination is based on the fact that these funds do not meet the definition of readily determinable fair value due to the absence of a published NAV. Evergy and Westar Energy have determined that these errors are immaterial to their current and previously filed financial reports and accordingly, have not revised prior periods but have reflected the changes in fair value hierarchy classification as of
September 30, 2018
.
|
(d)
|
KCP&L amounts are not included in consolidated Evergy as of December 31, 2017.
|
|
September 30, 2018
|
|
December 31, 2017
|
|
September 30, 2018
|
||||||||||||||
|
Fair
|
|
Unfunded
|
|
Fair
|
|
Unfunded
|
|
Redemption
|
|
Length of
|
||||||||
|
Value
|
|
Commitments
|
|
Value
|
|
Commitments
|
|
Frequency
|
|
Settlement
|
||||||||
Westar Energy
|
(millions)
|
|
|
|
|
||||||||||||||
Nuclear decommissioning trust:
|
|
|
|
|
|
||||||||||||||
Domestic equity funds
|
$
|
6.2
|
|
|
$
|
4.8
|
|
|
$
|
5.1
|
|
|
$
|
2.8
|
|
|
(a)
|
|
(a)
|
Alternative investments fund
(b)
|
23.6
|
|
|
—
|
|
|
21.7
|
|
|
—
|
|
|
Quarterly
|
|
65 days
|
||||
Real estate securities fund
(b)
|
11.5
|
|
|
—
|
|
|
10.8
|
|
|
—
|
|
|
Quarterly
|
|
65 days
|
||||
Total
|
$
|
41.3
|
|
|
$
|
4.8
|
|
|
$
|
37.6
|
|
|
$
|
2.8
|
|
|
|
|
|
Rabbi trust:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Core bond fund
|
$
|
24.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(c)
|
|
(c)
|
Combination debt/equity/other fund
|
6.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(c)
|
|
(c)
|
||||
Total
|
$
|
31.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
Other Evergy
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Rabbi trusts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed income fund
(d)
|
$
|
13.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(c)
|
|
(c)
|
Total Evergy investments at NAV
|
$
|
85.9
|
|
|
$
|
4.8
|
|
|
$
|
37.6
|
|
|
$
|
2.8
|
|
|
|
|
|
(a)
|
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 the second quarter of 2016 and first quarter of 2018, respectively. The fourth fund's term is
15 years
, subject to the general partner's right to extend the the term for up to
three
additional
one
-year periods. The fifth fund's term will be
15 years
after the initial closing date, subject to additional extensions approved by the 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.
|
(d)
|
This investment is recorded at GMO. GMO amounts are not included in consolidated Evergy as of December 31, 2017.
|
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Westar Energy
|
|
(millions)
|
||||||||||||||
Nuclear decommissioning trust - equity securities
|
|
$
|
6.5
|
|
|
$
|
7.7
|
|
|
$
|
(6.4
|
)
|
|
$
|
22.2
|
|
Rabbi trust
|
|
3.7
|
|
|
16.5
|
|
|
3.2
|
|
|
19.0
|
|
||||
Total
|
|
$
|
10.2
|
|
|
$
|
24.2
|
|
|
$
|
(3.2
|
)
|
|
$
|
41.2
|
|
KCP&L
(a)
|
|
|
|
|
|
|
|
|
||||||||
Nuclear decommissioning trust - equity securities
|
|
$
|
8.6
|
|
|
$
|
6.9
|
|
|
$
|
9.1
|
|
|
$
|
17.8
|
|
Nuclear decommissioning trust - debt securities
|
|
(0.5
|
)
|
|
—
|
|
|
(2.8
|
)
|
|
0.7
|
|
||||
Total
|
|
$
|
8.1
|
|
|
$
|
6.9
|
|
|
$
|
6.3
|
|
|
$
|
18.5
|
|
Evergy
|
|
|
|
|
|
|
|
|
||||||||
Nuclear decommissioning trust - equity securities
|
|
$
|
15.1
|
|
|
$
|
7.7
|
|
|
$
|
1.1
|
|
|
$
|
22.2
|
|
Nuclear decommissioning trust - debt securities
|
|
(0.5
|
)
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
||||
Rabbi trusts
|
|
3.7
|
|
|
16.5
|
|
|
3.1
|
|
|
19.0
|
|
||||
Total
|
|
$
|
18.3
|
|
|
$
|
24.2
|
|
|
$
|
3.4
|
|
|
$
|
41.2
|
|
•
|
Evergy
direct guarantees to GMO counterparties
totaling
$17.0 million
, which
expire in 2020
, and
|
•
|
Evergy's
guarantee of GMO long-term debt
totaling
$94.3 million
, which includes debt with
maturity dates ranging from 2019 to 2023
.
|
|
|
September 30
|
|
|
December 31
|
|
||||
|
|
2018
|
|
|
2017
|
|
||||
Westar Energy
|
|
(millions)
|
|
|||||||
Net receivable from GMO
|
|
$
|
0.7
|
|
|
|
$
|
—
|
|
|
Net payable to KCP&L
|
|
(59.3
|
)
|
|
|
—
|
|
|
||
Net payable to Evergy
|
|
(14.6
|
)
|
|
|
—
|
|
|
||
|
|
|
|
|
|
|
||||
KCP&L
|
|
|
|
|
|
|
||||
Net receivable from GMO
|
|
$
|
63.3
|
|
|
|
$
|
65.8
|
|
|
Net receivable from Westar Energy
|
|
59.3
|
|
|
|
—
|
|
|
||
Net receivable from Evergy
|
|
16.4
|
|
|
|
—
|
|
|
||
Net receivable from Great Plains Energy
|
|
—
|
|
|
|
18.9
|
|
|
|
|
September 30
|
|
December 31
|
||||
|
|
2018
|
|
2017
|
||||
Assets:
|
|
(millions)
|
||||||
Property, plant and equipment of variable interest entities, net
|
|
$
|
170.9
|
|
|
$
|
176.3
|
|
Liabilities:
|
|
|
|
|
||||
Current maturities of long-term debt of variable interest entities
|
|
$
|
30.3
|
|
|
$
|
28.5
|
|
Accrued interest
(a)
|
|
—
|
|
|
0.7
|
|
||
Long-term debt of variable interest entities, net
|
|
51.1
|
|
|
81.4
|
|
(a)
|
Included in accrued interest on Evergy's and Westar Energy's consolidated balance sheets.
|
Evergy
|
|
|
||||||||||||
|
Three Months Ended
September 30 |
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Current income taxes
|
(millions)
|
|||||||||||||
Federal
|
$
|
(30.3
|
)
|
|
$
|
(16.7
|
)
|
$
|
(21.5
|
)
|
|
$
|
(14.5
|
)
|
State
|
1.5
|
|
|
—
|
|
1.9
|
|
|
0.4
|
|
||||
Total
|
(28.8
|
)
|
|
(16.7
|
)
|
(19.6
|
)
|
|
(14.1
|
)
|
||||
Deferred income taxes
|
|
|
|
|
|
|
|
|
||||||
Federal
|
70.6
|
|
|
58.8
|
|
86.0
|
|
|
101.7
|
|
||||
State
|
23.3
|
|
|
14.3
|
|
(35.7
|
)
|
|
27.0
|
|
||||
Total
|
93.9
|
|
|
73.1
|
|
50.3
|
|
|
128.7
|
|
||||
Investment tax credit amortization
|
(1.0
|
)
|
|
(0.6
|
)
|
(2.4
|
)
|
|
(2.0
|
)
|
||||
Income tax expense
|
$
|
64.1
|
|
|
$
|
55.8
|
|
$
|
28.3
|
|
|
$
|
112.6
|
|
Westar Energy
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
September 30 |
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Current income taxes
|
(millions)
|
|||||||||||||
Federal
|
$
|
8.0
|
|
|
$
|
(16.7
|
)
|
$
|
18.9
|
|
|
$
|
(14.5
|
)
|
State
|
(9.2
|
)
|
|
—
|
|
(6.7
|
)
|
|
0.4
|
|
||||
Total
|
(1.2
|
)
|
|
(16.7
|
)
|
12.2
|
|
|
(14.1
|
)
|
||||
Deferred income taxes
|
|
|
|
|
|
|
|
|
||||||
Federal
|
12.3
|
|
|
58.8
|
|
15.4
|
|
|
101.7
|
|
||||
State
|
12.0
|
|
|
14.3
|
|
(47.6
|
)
|
|
27.0
|
|
||||
Total
|
24.3
|
|
|
73.1
|
|
(32.2
|
)
|
|
128.7
|
|
||||
Investment tax credit amortization
|
(0.7
|
)
|
|
(0.6
|
)
|
(2.0
|
)
|
|
(2.0
|
)
|
||||
Income tax expense (benefit)
|
$
|
22.4
|
|
|
$
|
55.8
|
|
$
|
(22.0
|
)
|
|
$
|
112.6
|
|
KCP&L
|
|
|
||||||||||||
|
Three Months Ended
September 30 |
Year to Date
September 30 |
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Current income taxes
|
(millions)
|
|||||||||||||
Federal
|
$
|
20.7
|
|
|
$
|
41.8
|
|
$
|
43.5
|
|
|
$
|
56.2
|
|
State
|
6.8
|
|
|
7.6
|
|
11.6
|
|
|
10.2
|
|
||||
Total
|
27.5
|
|
|
49.4
|
|
55.1
|
|
|
66.4
|
|
||||
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
||||
Federal
|
(1.9
|
)
|
|
10.3
|
|
(23.4
|
)
|
|
27.2
|
|
||||
State
|
2.7
|
|
|
2.8
|
|
49.4
|
|
|
6.2
|
|
||||
Total
|
0.8
|
|
|
13.1
|
|
26.0
|
|
|
33.4
|
|
||||
Investment tax credit amortization
|
(0.3
|
)
|
|
(0.3
|
)
|
(0.8
|
)
|
|
(0.8
|
)
|
||||
Income tax expense
|
$
|
28.0
|
|
|
$
|
62.2
|
|
$
|
80.3
|
|
|
$
|
99.0
|
|
Evergy
|
|
|
|
|
|
|
||||
|
Three Months Ended
September 30 |
Year to Date
September 30 |
||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||
Federal statutory income tax rate
|
21.0
|
%
|
|
35.0
|
%
|
21.0
|
%
|
|
35.0
|
%
|
Effect of:
|
|
|
|
|
|
|
||||
COLI policies
|
(2.4
|
)
|
|
(4.6
|
)
|
(2.4
|
)
|
|
(4.5
|
)
|
State income taxes
|
4.6
|
|
|
4.3
|
|
4.7
|
|
|
4.3
|
|
Flow through depreciation for plant-related differences
|
(1.5
|
)
|
|
2.3
|
|
(1.6
|
)
|
|
2.8
|
|
Federal tax credits
|
(7.5
|
)
|
|
(7.1
|
)
|
(7.5
|
)
|
|
(7.0
|
)
|
Non-controlling interest
|
(0.4
|
)
|
|
(0.5
|
)
|
(0.4
|
)
|
|
(0.8
|
)
|
AFUDC equity
|
(0.1
|
)
|
|
(0.2
|
)
|
(0.1
|
)
|
|
(0.2
|
)
|
Amortization of federal investment tax credits
|
(0.6
|
)
|
|
(0.6
|
)
|
(0.6
|
)
|
|
(0.6
|
)
|
State tax rate change
|
0.1
|
|
|
—
|
|
(9.5
|
)
|
|
—
|
|
Valuation allowance
|
—
|
|
|
—
|
|
0.4
|
|
|
—
|
|
Stock compensation
|
—
|
|
|
—
|
|
(0.5
|
)
|
|
(1.0
|
)
|
Officer compensation limitation
|
1.2
|
|
|
—
|
|
1.2
|
|
|
—
|
|
Other
|
0.8
|
|
|
(2.8
|
)
|
0.4
|
|
|
(0.7
|
)
|
Effective income tax rate
|
15.2
|
%
|
|
25.8
|
%
|
5.1
|
%
|
|
27.3
|
%
|
KCP&L
|
|
|
|
|
|
|
||||
|
Three Months Ended
September 30 |
Year to Date
September 30 |
||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||
Federal statutory income tax rate
|
21.0
|
%
|
|
35.0
|
%
|
21.0
|
%
|
|
35.0
|
%
|
Effect of:
|
|
|
|
|
|
|
||||
COLI policies
|
(0.2
|
)
|
|
(0.3
|
)
|
(0.2
|
)
|
|
(0.3
|
)
|
State income taxes
|
5.0
|
|
|
3.9
|
|
5.1
|
|
|
3.9
|
|
Flow through depreciation for plant-related differences
|
(4.9
|
)
|
|
0.1
|
|
(4.9
|
)
|
|
0.2
|
|
Federal tax credits
|
(1.9
|
)
|
|
(3.1
|
)
|
(1.8
|
)
|
|
(2.6
|
)
|
AFUDC equity
|
—
|
|
|
(0.7
|
)
|
(0.1
|
)
|
|
(0.7
|
)
|
Amortization of federal investment tax credits
|
(0.4
|
)
|
|
(0.4
|
)
|
(0.4
|
)
|
|
(0.4
|
)
|
State tax rate change
|
—
|
|
|
—
|
|
14.5
|
|
|
—
|
|
Valuation allowance
|
—
|
|
|
0.6
|
|
—
|
|
|
0.4
|
|
Stock compensation
|
—
|
|
|
0.1
|
|
—
|
|
|
0.2
|
|
Officer compensation limitation
|
0.7
|
|
|
—
|
|
0.5
|
|
|
—
|
|
Other
|
(0.4
|
)
|
|
0.1
|
|
(1.0
|
)
|
|
0.1
|
|
Effective income tax rate
|
18.9
|
%
|
|
35.3
|
%
|
32.7
|
%
|
|
35.8
|
%
|
•
|
Westar Energy is an integrated, regulated electric utility that provides electricity to customers in the state of Kansas. Westar Energy has one active wholly-owned subsidiary with significant operations, KGE.
|
•
|
KCP&L is an integrated, regulated electric utility that provides electricity to customers in the states of Missouri and Kansas. KCP&L has one active wholly-owned subsidiary, KCP&L Receivables Company.
|
•
|
GMO is an integrated, regulated electric utility that provides electricity to customers in the state of Missouri. GMO also provides regulated steam service to certain customers in the St. Joseph, Missouri area. GMO has one active wholly-owned subsidiary, GMO Receivables Company.
|
•
|
GPETHC 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. GPETHC accounts for its investment in Transource under the equity method.
|
•
|
the realization of a total of approximately $600 million of potential net savings from 2018 through 2022 resulting from synergies that are expected to be created as a result of the merger;
|
•
|
the repurchase of approximately 60 million outstanding shares of Evergy common stock by mid-2020;
|
•
|
anticipated rate base investment of approximately $6 billion from 2018 through 2022;
|
•
|
the continued growth of Evergy's renewable energy portfolio as the Evergy Companies retire older and less efficient fossil fuel plants; and
|
•
|
implementing the rate orders received and to be received by the KCC and MPSC by year-end 2018.
|
|
Three Months Ended September 30
|
|
Year to Date
September 30 |
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
|
(millions, except per share amounts)
|
||||||||||||||||||||||
Net income attributable to Evergy, Inc.
|
$
|
355.0
|
|
|
$
|
158.3
|
|
|
$
|
196.7
|
|
|
$
|
517.3
|
|
|
$
|
290.0
|
|
|
$
|
227.3
|
|
Earnings per common share, diluted
|
1.32
|
|
|
1.11
|
|
|
0.21
|
|
|
2.61
|
|
|
2.03
|
|
|
0.58
|
|
|
Three Months Ended
September 30 |
|
Year to Date
September 30 |
||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||||
|
(millions)
|
||||||||||||||||||||||
Operating revenues
|
$
|
1,582.5
|
|
|
$
|
794.3
|
|
|
$
|
788.2
|
|
|
$
|
3,076.1
|
|
|
$
|
1,976.2
|
|
|
$
|
1,099.9
|
|
Fuel and purchased power
|
383.7
|
|
|
189.8
|
|
|
193.9
|
|
|
748.9
|
|
|
415.4
|
|
|
333.5
|
|
||||||
SPP network transmission costs
|
58.4
|
|
|
62.6
|
|
|
(4.2
|
)
|
|
194.4
|
|
|
185.0
|
|
|
9.4
|
|
||||||
Other operating expenses
|
413.4
|
|
|
182.4
|
|
|
231.0
|
|
|
937.7
|
|
|
542.0
|
|
|
395.7
|
|
||||||
Depreciation and amortization
|
193.9
|
|
|
94.6
|
|
|
99.3
|
|
|
411.6
|
|
|
277.3
|
|
|
134.3
|
|
||||||
Income from operations
|
533.1
|
|
|
264.9
|
|
|
268.2
|
|
|
783.5
|
|
|
556.5
|
|
|
227.0
|
|
||||||
Other income (expense), net
|
(24.3
|
)
|
|
(6.6
|
)
|
|
(17.7
|
)
|
|
(43.7
|
)
|
|
(20.4
|
)
|
|
(23.3
|
)
|
||||||
Interest expense
|
89.1
|
|
|
43.4
|
|
|
45.7
|
|
|
191.3
|
|
|
128.2
|
|
|
63.1
|
|
||||||
Income tax expense
|
64.1
|
|
|
55.8
|
|
|
8.3
|
|
|
28.3
|
|
|
112.6
|
|
|
(84.3
|
)
|
||||||
Equity in earnings of equity method investees, net of income taxes
|
2.0
|
|
|
1.6
|
|
|
0.4
|
|
|
4.7
|
|
|
4.9
|
|
|
(0.2
|
)
|
||||||
Net income
|
357.6
|
|
|
160.7
|
|
|
196.9
|
|
|
524.9
|
|
|
300.2
|
|
|
224.7
|
|
||||||
Less: Net income attributable to noncontrolling interests
|
2.6
|
|
|
2.4
|
|
|
0.2
|
|
|
7.6
|
|
|
10.2
|
|
|
(2.6
|
)
|
||||||
Net income attributable to Evergy, Inc.
|
$
|
355.0
|
|
|
$
|
158.3
|
|
|
$
|
196.7
|
|
|
$
|
517.3
|
|
|
$
|
290.0
|
|
|
$
|
227.3
|
|
•
|
a $603.7 million increase due to the inclusion of KCP&L's and GMO's utility gross margin; and
|
•
|
a $25.1 million increase primarily due to higher Westar Energy retail sales driven by warmer summer weather. For the three months ended
September 30, 2018
, compared to the same period in 2017, cooling degree days increased 17%; partially offset by
|
•
|
a $28.1 million refund obligation recorded at Westar Energy for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information; and
|
•
|
a $2.2 million obligation recorded at Westar Energy for one-time annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information.
|
•
|
a $774.5 million increase due to the inclusion of KCP&L's and GMO's utility gross margin beginning in June 2018; and
|
•
|
a $77.7 million increase primarily due to higher Westar Energy retail sales driven by warmer spring and summer weather and colder winter weather. For year to date
September 30, 2018
, compared to the same period in 2017, cooling degree days increased 32% and heating degree days increased 29%; partially offset by
|
•
|
a $66.3 million refund obligation recorded at Westar Energy for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information; and
|
•
|
a $28.9 million obligation recorded at Westar Energy for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information.
|
•
|
a $183.9 million increase in operating and maintenance expense due to the inclusion of KCP&L's and GMO's operating and maintenance expenses;
|
•
|
a $40.7 million increase in taxes other than income taxes due to the inclusion of KCP&L and GMO amounts;
|
•
|
$7.1 million of merger-related costs incurred following the close of the merger, consisting of:
|
◦
|
$0.8 million of Westar Energy voluntary severance expenses incurred; and
|
◦
|
$6.3 million of merger consulting fees and fees for other outside services incurred; and
|
•
|
a $5.5 million increase due to Westar Energy's 47% share of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program.
|
•
|
a $245.6 million increase in operating and maintenance expense due to the inclusion of KCP&L's and GMO's operating and maintenance expenses beginning in June 2018, excluding the deferral of merger transition costs discussed below;
|
•
|
$64.6 million of merger-related costs incurred following the close of the merger in June 2018, consisting of:
|
◦
|
$24.7 million of unconditional charitable contributions and community support recorded by Evergy in accordance with conditions in the KCC and MPSC merger orders;
|
◦
|
$40.7 million of Westar Energy change in control payments, voluntary severance and the recording of unrecognized equity compensations costs and the incremental fair value associated with the vesting of outstanding Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and
|
◦
|
$47.0 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
|
◦
|
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 Westar Energy, KCP&L and GMO in accordance with the KCC and MPSC merger orders;
|
•
|
a $54.6 million increase in taxes other than income taxes due to the inclusion of KCP&L and GMO amounts beginning in June 2018;
|
•
|
$12.3 million of obsolete inventory write-offs for Westar Energy's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordon Evans Energy Center, which were retired in the fourth quarter of 2018; and
|
•
|
a $5.5 million increase due to Westar Energy's 47% share of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program.
|
•
|
an $11.7 million increase due to the inclusion of KCP&L and GMO amounts; and
|
•
|
a $1.0 million decrease in Westar Energy's investment earnings primarily due to a decrease in interest and dividend income.
|
•
|
a $14.6 million increase due to the inclusion of KCP&L and GMO amounts beginning in June 2018; and
|
•
|
a $3.9 million decrease in Westar Energy's investment earnings primarily due to a decrease in interest and dividend income.
|
•
|
a $41.5 million increase as a result of the inclusion of income tax expense related to Evergy, Inc. and the subsidiaries of Great Plains Energy; partially offset by
|
•
|
a $25.9 million decrease in Westar Energy's income tax expense as a result of the decrease in the federal statutory income tax rate in 2018; and
|
•
|
a $6.9 million decrease due to lower Westar Energy pre-tax income.
|
•
|
a $53.2 million decrease related to the revaluation of Westar Energy's deferred income tax assets and liabilities based on the Evergy composite tax rate as a result of the merger;
|
•
|
a $47.5 million decrease due to lower Westar Energy pre-tax income; and
|
•
|
a $38.1 million decrease in Westar Energy's income tax expense as a result of the decrease in the federal statutory income tax rate in 2018; partially offset by
|
•
|
a $50.2 million increase as a result of the inclusion of income tax expense related to Evergy, Inc. and the subsidiaries of Great Plains Energy beginning in June 2018.
|
|
Total
Change
|
|
Change Due to Merger
|
|
Remaining
Change
|
||||||
Assets
|
(in millions)
|
||||||||||
Cash and cash equivalents
|
$
|
676.3
|
|
|
$
|
1,154.2
|
|
|
$
|
(477.9
|
)
|
Accounts receivable, net
|
205.8
|
|
|
155.6
|
|
|
50.2
|
|
|||
Accounts receivable pledged as collateral
|
195.0
|
|
|
180.0
|
|
|
15.0
|
|
|||
Fuel inventories and supplies
|
227.3
|
|
|
271.5
|
|
|
(44.2
|
)
|
|||
Income taxes receivable
|
20.8
|
|
|
—
|
|
|
20.8
|
|
|||
Regulatory assets - current
|
233.0
|
|
|
207.8
|
|
|
25.2
|
|
|||
Prepaid expenses and other assets
|
33.8
|
|
|
41.5
|
|
|
(7.7
|
)
|
|||
Property, plant and equipment, net
|
9,282.2
|
|
|
9,179.7
|
|
|
102.5
|
|
|||
Property, plant and equipment of variable interest entities, net
|
(5.4
|
)
|
|
—
|
|
|
(5.4
|
)
|
|||
Regulatory assets
|
832.7
|
|
|
829.1
|
|
|
3.6
|
|
|||
Nuclear decommissioning trust
|
280.9
|
|
|
261.3
|
|
|
19.6
|
|
|||
Goodwill
|
2,333.5
|
|
|
2,333.5
|
|
|
—
|
|
|||
Other
|
134.9
|
|
|
145.5
|
|
|
(10.6
|
)
|
|||
Liabilities
|
|
|
|
|
|
||||||
Current maturities of long-term debt
|
709.6
|
|
|
415.3
|
|
|
294.3
|
|
|||
Current maturities of long-term debt of variable interest entities
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|||
Notes payable and commercial paper
|
400.2
|
|
|
561.0
|
|
|
(160.8
|
)
|
|||
Collateralized note payable
|
195.0
|
|
|
180.0
|
|
|
15.0
|
|
|||
Accounts payable
|
99.5
|
|
|
191.4
|
|
|
(91.9
|
)
|
|||
Accrued dividends
|
(53.8
|
)
|
|
—
|
|
|
(53.8
|
)
|
|||
Accrued taxes
|
194.4
|
|
|
82.0
|
|
|
112.4
|
|
|||
Accrued interest
|
46.9
|
|
|
48.0
|
|
|
(1.1
|
)
|
|||
Regulatory liabilities - current
|
105.6
|
|
|
17.7
|
|
|
87.9
|
|
|||
Other current liabilities
|
136.3
|
|
|
119.1
|
|
|
17.2
|
|
|||
Long-term debt, net
|
2,952.2
|
|
|
3,358.6
|
|
|
(406.4
|
)
|
|||
Long-term debt of variable interest entities, net
|
(30.3
|
)
|
|
—
|
|
|
(30.3
|
)
|
|||
Deferred income taxes
|
720.3
|
|
|
665.1
|
|
|
55.2
|
|
|||
Unamortized investment tax credits
|
121.8
|
|
|
124.3
|
|
|
(2.5
|
)
|
|||
Regulatory liabilities
|
1,263.1
|
|
|
1,172.9
|
|
|
90.2
|
|
|||
Pension and post-retirement liability
|
458.5
|
|
|
477.3
|
|
|
(18.8
|
)
|
|||
Asset retirement obligations
|
242.7
|
|
|
366.1
|
|
|
(123.4
|
)
|
|||
Other long-term liabilities
|
98.6
|
|
|
83.1
|
|
|
15.5
|
|
•
|
Evergy's cash and cash equivalents decreased $477.9 million primarily due to the repurchase of common stock for a total cost of $486.1 million in connection with Evergy's share repurchase program.
|
•
|
Evergy's receivables, net increased $50.2 million primarily due to seasonal increases in customer accounts receivable.
|
•
|
Evergy's current maturities of long-term debt increased by $294.3 million primarily due to the reclassification of KGE's $300.0 million of 6.70% Series First Mortgage Bonds from long-term to current.
|
•
|
Evergy's notes payable and commercial paper decreased $160.8 million primarily due to the repayment of commercial paper with funds from operations at KCP&L and GMO.
|
•
|
Evergy's accounts payable decreased $91.9 million primarily due to the timing of cash payments.
|
•
|
Evergy's accrued dividends decreased $53.8 million due to the timing of payment for Westar Energy's common stock dividend declared in August 2018, which was paid in September 2018, and its common stock dividend declared in November 2017, which was paid in January 2018.
|
•
|
Evergy's accrued taxes increased $112.4 million primarily due to the timing of property tax payments.
|
•
|
Evergy's current regulatory liabilities increased $87.9 million primarily due to $79.0 million of refund obligations recorded by Westar Energy consisting of $55.9 million related to the Tax Cuts and Jobs Act and $23.1 million related to one-time customer merger bill credits.
|
•
|
Evergy's long-term debt decreased by $406.4 million primarily due to the reclassification of KGE's $300.0 million of 6.70% Series First Mortgage Bonds from long-term to current and the redemption of $104.0 million of GMO's Series A and B Senior Notes in the third quarter of 2018.
|
•
|
Evergy's long-term debt of variable interest entities, net decreased $30.3 million primarily due to the VIE that holds the La Cygne Unit 2 leasehold interest having made principal payments totaling $28.5 million.
|
•
|
Evergy's asset retirement obligations decreased $123.4 million primarily due to a $127.0 million decrease in Evergy's and Westar Energy's AROs for a revision in estimate primarily related to Westar Energy's ARO to decommission its 47% ownership share of Wolf Creek. See Note 6 to the consolidated financial statements for additional information.
|
|
September 30
|
|
December 31
|
|
2018
|
|
2017
|
Common equity
|
59%
|
|
51%
|
Noncontrolling interests
|
<0%
|
|
<0%
|
Long-term debt, including VIEs
|
41%
|
|
49%
|
|
Moody's
|
|
S&P Global
|
||||
|
Investors Service
|
|
Ratings
|
||||
Evergy
|
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
|
|
Stable
|
|
Corporate Credit Rating
|
|
--
|
|
|
|
A-
|
|
Senior Unsecured Debt
|
|
Baa2
|
|
|
|
BBB+
|
|
|
|
|
|
|
|
|
|
Westar Energy
|
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
|
|
Stable
|
|
Corporate Credit Rating
|
|
Baa1
|
|
|
|
A-
|
|
Senior Secured Debt
|
|
A2
|
|
|
|
A
|
|
Commercial Paper
|
|
P-2
|
|
|
|
A-2
|
|
|
|
|
|
|
|
|
|
KGE
|
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
|
|
Stable
|
|
Corporate Credit Rating
|
|
Baa1
|
|
|
|
A-
|
|
Senior Secured Debt
|
|
A2
|
|
|
|
A
|
|
|
|
|
|
|
|
|
|
KCP&L
|
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
|
|
Stable
|
|
Corporate Credit Rating
|
|
Baa1
|
|
|
|
A-
|
|
Senior Secured Debt
|
|
A2
|
|
|
|
A
|
|
Senior Unsecured Debt
|
|
Baa1
|
|
|
|
A-
|
|
Commercial Paper
|
|
P-2
|
|
|
|
A-2
|
|
|
|
|
|
|
|
|
|
GMO
|
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
|
|
Stable
|
|
Corporate Credit Rating
|
|
Baa2
|
|
|
|
A-
|
|
Senior Unsecured Debt
|
|
Baa2
|
|
|
|
A-
|
|
Commercial Paper
|
|
P-2
|
|
|
|
A-2
|
|
•
|
Evergy direct guarantees to GMO counterparties totaling
$17.0 million
, which expire in 2020, and
|
•
|
Evergy's guarantee of GMO long-term debt totaling
$94.3 million
, which includes debt with maturity dates ranging from 2019 to 2023.
|
Year to Date September 30
|
2018
|
2017
|
||||
|
(in millions)
|
|||||
Cash flows from operating activities
|
$
|
1,191.6
|
|
$
|
742.7
|
|
Cash flows from (used in) investing activities
|
574.8
|
|
(581.4
|
)
|
||
Cash flows used in financing activities
|
(1,090.1
|
)
|
(161.0
|
)
|
|
Year to Date September 30
|
||||||||||
|
2018
|
|
2017
|
|
Change
|
||||||
|
(millions)
|
||||||||||
Operating revenues
|
$
|
2,015.9
|
|
|
$
|
1,976.2
|
|
|
$
|
39.7
|
|
Fuel and purchased power
|
463.2
|
|
|
415.4
|
|
|
47.8
|
|
|||
SPP network transmission costs
|
194.4
|
|
|
185.0
|
|
|
9.4
|
|
|||
Other operating expenses
|
620.2
|
|
|
542.0
|
|
|
78.2
|
|
|||
Depreciation and amortization
|
281.6
|
|
|
277.3
|
|
|
4.3
|
|
|||
Income from operations
|
456.5
|
|
|
556.5
|
|
|
(100.0
|
)
|
|||
Other income (expense), net
|
(31.6
|
)
|
|
(20.4
|
)
|
|
(11.2
|
)
|
|||
Interest expense
|
132.1
|
|
|
128.2
|
|
|
3.9
|
|
|||
Income tax expense (benefit)
|
(22.0
|
)
|
|
112.6
|
|
|
(134.6
|
)
|
|||
Equity in earnings of equity method investees, net of income taxes
|
3.7
|
|
|
4.9
|
|
|
(1.2
|
)
|
|||
Net income
|
318.5
|
|
|
300.2
|
|
|
18.3
|
|
|||
Less: Net income attributable to noncontrolling interests
|
7.6
|
|
|
10.2
|
|
|
(2.6
|
)
|
|||
Net income attributable to Westar Energy, Inc.
|
$
|
310.9
|
|
|
$
|
290.0
|
|
|
$
|
20.9
|
|
|
Revenues and Expenses
|
|
MWhs Sold
|
|||||||||||||||||
Year to Date September 30
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||
Retail revenues
|
(millions)
|
|
(thousands)
|
|||||||||||||||||
Residential
|
$
|
671.9
|
|
|
$
|
626.8
|
|
|
$
|
45.1
|
|
|
5,349
|
|
|
4,828
|
|
|
521
|
|
Commercial
|
542.8
|
|
|
543.4
|
|
|
(0.6
|
)
|
|
5,797
|
|
|
5,588
|
|
|
209
|
|
|||
Industrial
|
297.2
|
|
|
316.0
|
|
|
(18.8
|
)
|
|
4,275
|
|
|
4,319
|
|
|
(44
|
)
|
|||
Other retail revenues
|
15.3
|
|
|
17.2
|
|
|
(1.9
|
)
|
|
45
|
|
|
56
|
|
|
(11
|
)
|
|||
Total electric retail
|
1,527.2
|
|
|
1,503.4
|
|
|
23.8
|
|
|
15,466
|
|
|
14,791
|
|
|
675
|
|
|||
Wholesale revenues
|
263.7
|
|
|
256.2
|
|
|
7.5
|
|
|
7,560
|
|
|
7,612
|
|
|
(52
|
)
|
|||
Transmission revenues
|
216.3
|
|
|
213.0
|
|
|
3.3
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Other revenues
|
8.7
|
|
|
3.6
|
|
|
5.1
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Operating revenues
|
2,015.9
|
|
|
1,976.2
|
|
|
39.7
|
|
|
23,026
|
|
|
22,403
|
|
|
623
|
|
|||
Fuel and purchased power
|
(463.2
|
)
|
|
(415.4
|
)
|
|
(47.8
|
)
|
|
|
|
|
|
|
||||||
SPP network transmission costs
|
(194.4
|
)
|
|
(185.0
|
)
|
|
(9.4
|
)
|
|
|
|
|
|
|
||||||
Utility gross margin
(a)
|
$
|
1,358.3
|
|
|
$
|
1,375.8
|
|
|
$
|
(17.5
|
)
|
|
|
|
|
|
|
(a)
|
Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations.
|
•
|
a $66.3 million refund obligation for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information; and
|
•
|
a $28.9 million obligation for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information; partially offset by
|
•
|
a $77.7 million increase primarily due to higher retail sales driven by warmer spring and summer weather and colder winter weather. For year to date
September 30, 2018
, compared to the same period in 2017, cooling degree days increased 31% and heating degree days increased 27%.
|
•
|
$47.8 million of merger-related costs incurred following the close of the merger in June 2018, consisting of:
|
◦
|
$40.7 million of change in control payments, voluntary severance and the recording of unrecognized equity compensation costs and the incremental fair value associated with the vesting of outstanding Westar Energy equity compensation awards in accordance with the Amended Merger Agreement; and
|
◦
|
$20.4 million of merger consulting fees and fees for other outside services incurred, primarily consisting of merger success fees; partially offset by
|
◦
|
a $13.3 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between Westar Energy, Evergy, KCP&L and GMO and the subsequent deferral of these transition costs to a regulatory asset in June 2018 for future recovery by Westar Energy in accordance with the KCC merger order;
|
•
|
$12.3 million of obsolete inventory write-offs for Westar Energy's Unit 7 at Tecumseh Energy Center, Units 3 and 4 at Murray Gill Energy Center and Units 1 and 2 at Gordon Evans Energy Center, which were retired in the fourth quarter of 2018; and
|
•
|
a $5.5 million increase due to Westar Energy's 47% share of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program.
|
•
|
a $3.9 million increase in pension non-service costs; and
|
•
|
a $3.9 million decrease in investment earnings primarily due to a decrease in interest and dividend income.
|
•
|
a $53.2 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;
|
•
|
a $47.5 million decrease due to lower pre-tax income; and
|
•
|
a $38.1 million decrease as a result of the decrease in the federal statutory income tax rate in 2018.
|
|
Year to Date September 30
|
||||||||||
|
2018
|
|
2017
|
|
Change
|
||||||
|
(millions)
|
||||||||||
Operating revenues
|
$
|
1,408.9
|
|
|
$
|
1,474.3
|
|
|
$
|
(65.4
|
)
|
Fuel and purchased power
|
392.4
|
|
|
367.3
|
|
|
25.1
|
|
|||
Other operating expenses
|
442.4
|
|
|
490.9
|
|
|
(48.5
|
)
|
|||
Depreciation and amortization
|
209.0
|
|
|
199.9
|
|
|
9.1
|
|
|||
Income from operations
|
365.1
|
|
|
416.2
|
|
|
(51.1
|
)
|
|||
Other income (expense), net
|
(19.1
|
)
|
|
(33.8
|
)
|
|
14.7
|
|
|||
Interest expense
|
100.6
|
|
|
105.5
|
|
|
(4.9
|
)
|
|||
Income tax expense
|
80.3
|
|
|
99.0
|
|
|
(18.7
|
)
|
|||
Net income
|
$
|
165.1
|
|
|
$
|
177.9
|
|
|
$
|
(12.8
|
)
|
|
Revenues and Expenses
|
|
MWhs Sold
|
|||||||||||||||||
Year to Date September 30
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|||||||||
Retail revenues
|
(millions)
|
|
(thousands)
|
|||||||||||||||||
Residential
|
$
|
585.4
|
|
|
$
|
573.7
|
|
|
$
|
11.7
|
|
|
4,480
|
|
|
4,034
|
|
|
446
|
|
Commercial
|
609.2
|
|
|
651.1
|
|
|
(41.9
|
)
|
|
5,931
|
|
|
5,730
|
|
|
201
|
|
|||
Industrial
|
105.4
|
|
|
118.9
|
|
|
(13.5
|
)
|
|
1,333
|
|
|
1,330
|
|
|
3
|
|
|||
Other retail revenues
|
7.7
|
|
|
8.3
|
|
|
(0.6
|
)
|
|
56
|
|
|
53
|
|
|
3
|
|
|||
Total electric retail
|
1,307.7
|
|
|
1,352.0
|
|
|
(44.3
|
)
|
|
11,800
|
|
|
11,147
|
|
|
653
|
|
|||
Wholesale revenues
|
38.5
|
|
|
74.7
|
|
|
(36.2
|
)
|
|
3,753
|
|
|
5,198
|
|
|
(1,445
|
)
|
|||
Transmission revenues
|
11.0
|
|
|
12.2
|
|
|
(1.2
|
)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Other revenues
|
51.7
|
|
|
35.4
|
|
|
16.3
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Operating revenues
|
1,408.9
|
|
|
1,474.3
|
|
|
(65.4
|
)
|
|
15,553
|
|
|
16,345
|
|
|
(792
|
)
|
|||
Fuel and purchased power
|
(392.4
|
)
|
|
(367.3
|
)
|
|
(25.1
|
)
|
|
|
|
|
|
|
||||||
Utility gross margin
(a)
|
$
|
1,016.5
|
|
|
$
|
1,107.0
|
|
|
$
|
(90.5
|
)
|
|
|
|
|
|
|
|
|
(a)
|
Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin under Evergy's Results of Operations.
|
•
|
a $64.5 million refund obligation for the change in the corporate income tax rate caused by the passage of the Tax Cuts and Jobs Act. See Note 17 to the consolidated financial statements for additional information;
|
•
|
$56.0 million of sales taxes and franchise fees collected from KCP&L Missouri customers in 2017, which as part of KCP&L's adoption of ASC 606, are now presented net in revenue in 2018; and
|
•
|
a $24.3 million obligation for one-time and annual bill credits as a result of conditions in the MPSC and KCC merger orders. See Note 2 to the consolidated financial statements for additional information; partially offset by
|
•
|
a $54.3 million increase primarily due to higher retail sales driven by warmer spring and summer weather and colder winter weather. For year to date
September 30, 2018
, compared to the same period in 2017, cooling degree days increased 34% and heating degree days increased 30%.
|
•
|
a $55.8 million decrease in taxes other than income tax due to sales taxes and franchise fees collected from KCP&L Missouri customers in 2017, which, as part of KCP&L's adoption of ASC 606,
Revenue from Contracts with Customers
, are now presented net in revenue in 2018; and
|
•
|
a $23.9 million decrease in operating and maintenance expense due to the net reallocation of incurred merger transition costs between KCP&L, Evergy, Westar Energy and GMO and the subsequent deferral of these transition costs to a regulatory asset for future recovery by KCP&L in accordance with the KCC and MPSC merger orders; partially offset by
|
•
|
a $9.0 million increase due to KCP&L's 47% share of voluntary severance expenses incurred related to the Wolf Creek voluntary exit program as well as KCP&L's Local 412 union voluntary exit program;
|
•
|
a $5.4 million increase in transmission and distribution operating and maintenance expense; and
|
•
|
a $3.6 million increase in injuries and damages expense primarily due to an increase in estimated worker's compensation losses.
|
•
|
a $31.5 million decrease in income tax expense as a result of the decrease in the federal statutory income tax rate in 2018;
|
•
|
a $15.5 million decrease 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;
|
•
|
a $13.1 million decrease in income tax expense due to an increase in flow-through items primarily consisting of amortization of regulatory liabilities for excess deferred income taxes generated as a result of the enactment of the Tax Cuts and Jobs Act in December 2017; and
|
•
|
a $12.3 million decrease due to lower pre-tax income; partially offset by
|
•
|
a $51.0 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.
|
Issuer Purchases of Equity Securities
|
||||||||||
Month
|
|
Total Number of Shares (or Units) Purchased
(a)
|
Average Price Paid per Share (or Unit)
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
(a)
|
|||||
July 1 - 31
|
|
—
|
|
$
|
—
|
|
—
|
|
N/A
|
|
August 1 - 31
|
|
6,496,849
|
|
(b)
|
6,496,849
|
|
53,503,151
|
|
||
September 1 - 30
|
|
398,224
|
|
57.25
|
|
398,224
|
|
53,104,927
|
|
|
Total
|
|
6,895,073
|
|
(b)
|
6,895,073
|
|
53,104,927
|
|
Exhibit
Number
|
|
Description of Document
|
|
Registrant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
*
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
|
10.2
|
+
|
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
10.3
|
+
|
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
31.1
|
|
|
Evergy
|
|
|
|
|
|
|
31.2
|
|
|
Evergy
|
|
|
|
|
|
|
31.3
|
|
|
KCP&L
|
|
|
|
|
|
|
31.4
|
|
|
KCP&L
|
|
|
|
|
|
|
31.5
|
|
|
Westar Energy
|
|
|
|
|
|
|
31.6
|
|
|
Westar Energy
|
|
|
|
|
|
|
32.1
|
**
|
|
Evergy
|
|
|
|
|
|
|
32.2
|
**
|
|
KCP&L
|
|
|
|
|
|
|
32.3
|
**
|
|
Westar Energy
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
|
|
|
Exhibit
Number
|
|
Description of Document
|
|
Registrant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
Evergy
Westar Energy KCP&L |
|
|
EVERGY, INC.
|
|
|
|
Dated:
|
November 7, 2018
|
By:
/s/ Anthony D. Somma
|
|
|
(Anthony D. Somma)
|
|
|
(Executive Vice President and Chief Financial Officer)
|
|
|
WESTAR ENERGY, INC.
|
|
|
|
Dated:
|
November 7, 2018
|
By:
/s/ Anthony D. Somma
|
|
|
(Anthony D. Somma)
|
|
|
(Executive Vice President and Chief Financial Officer)
|
|
|
KANSAS CITY POWER & LIGHT COMPANY
|
|
|
|
Dated:
|
November 7, 2018
|
By:
/s/ Anthony D. Somma
|
|
|
(Anthony D. Somma)
|
|
|
(Executive Vice President and Chief Financial Officer)
|
EVERGY, INC.
|
||
By:
|
|
|
|
Name:
|
|
|
Title:
|
|
|
||
INDEMNITEE
|
||
|
||
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Evergy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/
s/ Terry Bassham
|
|
|
Terry Bassham
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Evergy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/s/Anthony D. Somma
|
|
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Kansas City Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/s/ Terry Bassham
|
||
|
|
|
Terry Bassham
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Kansas City Power & Light Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/s/ Anthony D. Somma
|
|
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Westar Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/s/ Terry Bassham
|
||
|
|
|
Terry Bassham
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Westar Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
November 7, 2018
|
/s/ Anthony D. Somma
|
|
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Terry Bassham
|
Name:
Title:
|
Terry Bassham
President and Chief Executive Officer
|
Date:
|
November 7, 2018
|
|
|
|
/s/Anthony D. Somma
|
Name:
Title:
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
Date:
|
November 7, 2018
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Terry Bassham
|
Name:
Title:
|
Terry Bassham
President and Chief Executive Officer
|
Date:
|
November 7, 2018
|
|
|
|
/s/ Anthony D. Somma
|
Name:
Title:
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
Date:
|
November 7, 2018
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Terry Bassham
|
Name:
Title:
|
Terry Bassham
President and Chief Executive Officer
|
Date:
|
November 7, 2018
|
|
|
|
/s/ Anthony D. Somma
|
Name:
Title:
|
Anthony D. Somma
Executive Vice President and Chief Financial Officer
|
Date:
|
November 7, 2018
|