10-K – 2026-02-19 – evrg-20251231.htm

Abandoned Plant
When the Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset and a probable abandonment. If the asset is still in service, the net amount is classified as plant to be retired, net on the consolidated balance sheets. If the asset is no longer in service, the net amount is classified as a regulatory asset on the consolidated balance sheets.
The Evergy Companies must also assess the probability of full recovery of the remaining net book value of the abandonment. The net book value that may be retained as an asset on the balance sheet for the abandonment is dependent upon amounts that may be recovered through regulated rates, including any return. An impairment charge, if any, would equal the difference between the remaining net book value of the asset and the present value of the future revenues expected from the asset.
Nuclear Plant Decommissioning Costs
Nuclear plant decommissioning cost estimates are based on either the immediate dismantling method or the deferred dismantling method as determined by the State Corporation Commission of the State of Kansas (KCC) and Public Service Commission of the State of Missouri (MPSC) and include the costs of decontamination, dismantlement and site restoration. Based on these cost estimates, Evergy Kansas Central and Evergy Metro each contribute to a tax-qualified trust fund to be used to decommission Wolf Creek. Related liabilities for decommissioning are included on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets in asset retirement obligations (AROs).
As a result of the authorized regulatory treatment and related regulatory accounting, differences between the fair value of the assets held in the nuclear decommissioning trust and the amounts recorded for the accumulated accretion and depreciation expense associated with the decommissioning ARO are recorded as a regulatory liability on Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated balance sheets. See Note 6 for discussion of AROs including those associated with nuclear plant decommissioning costs.
Regulatory Accounting
Accounting standards are applied that recognize the economic effects of rate regulation. Accordingly, regulatory assets and liabilities have been recorded when required by a regulatory order or based on regulatory precedent. See Note 4 for additional information concerning regulatory matters.
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Cash Surrender Value of Life Insurance
Amounts related to corporate-owned life insurance (COLI) are recorded on the consolidated balance sheets in other long-term assets and are detailed in the following table for Evergy. Substantially all of Evergy's COLI-related balances relate to Evergy Kansas Central's COLI activity.

December 31
2025 2024
Evergy (millions)
Cash surrender value of policies $ 1,331.0   $ 1,322.6  
Borrowings against policies ( 1,201.0 ) ( 1,196.2 )
Corporate-owned life insurance, net $ 130.0   $ 126.4  

Increases in cash surrender value and death benefits are recorded in other income in the Evergy Companies' consolidated statements of income and comprehensive income. Interest expense incurred on policy loans is offset against the policy income. Income from death benefits is highly variable from period to period.
Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of the following financial instruments for which it was practicable to estimate that value.
Nuclear decommissioning trust - The Evergy Companies' nuclear decommissioning trust assets are recorded at fair value based on quoted market prices of the investments held by the fund and/or valuation models.
Derivative instruments - The Evergy Companies' derivative instruments are recorded at fair value based on quoted market prices for exchange-traded derivative instruments, quoted prices for similar contracts and/or valuation models.
Pension plans - For financial reporting purposes, the market value of plan assets is the fair value based on quoted market prices of the investments held by the fund and/or valuation models.
Derivative Instruments
The Evergy Companies record derivative instruments on the balance sheet at fair value in accordance with GAAP. The Evergy Companies enter into derivative contracts to manage risk exposure to commodity price and interest rate fluctuations and also for trading purposes. See Note 13 for additional information regarding derivative financial instruments and hedging activities.
Revenue Recognition
The Evergy Companies recognize revenue on the sale of electricity to customers over time as the service is provided in the amount they have the right to invoice. Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kilowatt hour (kWh) usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates. The Evergy Companies' unbilled revenue estimate is affected by factors including fluctuations in energy demand, weather, line losses and changes in the composition of customer classes. See Note 3 for the balance of unbilled receivables for each of Evergy, Evergy Kansas Central and Evergy Metro as of December 31, 2025 and 2024.
The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus are not reflected on the consolidated statements of income and comprehensive income for Evergy, Evergy Kansas Central and Evergy Metro.
See Note 2 for additional details regarding revenue recognition from sales of electricity by the Evergy Companies.
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Allowance for Credit Losses
Historical loss information generally provides the basis for the Evergy Companies' assessment of expected credit losses. The Evergy Companies use an aging of accounts receivable method to assess historical loss information. When historical experience may not fully reflect the Evergy Companies' expectations about the future, the Evergy Companies will adjust historical loss information, as necessary, to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information.
Receivables are charged off when they are deemed uncollectible, which is based on a number of factors including specific facts surrounding an account and management's judgment.
Asset Impairments
Long-lived assets and finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows from an asset to be held and used is less than the carrying value of the asset, an asset impairment must be recognized in the financial statements. The amount of impairment recognized is the excess of the carrying value of the asset over its fair value.
Goodwill and indefinite lived intangible assets are tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. The annual test must be performed at the same time each year. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. See Note 5 for additional details on goodwill.
Income Taxes
Income taxes are accounted for using the asset/liability approach. Deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized.
The Evergy Companies recognize tax benefits based on a "more-likely-than-not" recognition threshold. In addition, the Evergy Companies recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
Evergy files a consolidated federal income tax return as well as unitary and combined income tax returns in several state jurisdictions with Kansas and Missouri being the most significant. Income taxes for consolidated or combined subsidiaries are allocated to the subsidiaries based on separate company computations of income or loss. Evergy Kansas Central's and Evergy Metro's income tax provisions include taxes allocated based on their separate company's income or loss.
The Evergy Companies have established a net regulatory liability for future refunds to be made to customers for amounts collected from customers in excess of income taxes in current rates. Tax credits are recognized in the year generated except for certain Evergy Kansas Central, Evergy Metro and Evergy Missouri West investment tax credits that have been deferred and amortized over the remaining service lives of the related properties.
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Other Income and Other Expense
The tables below show the detail of other income and other expense, respectively, for each of the Evergy Companies.

Other Income 2025 2024 2023
Evergy (millions)
AFUDC equity $ 22.9   $ 19.6   $ 10.8  

Corporate-owned life insurance policy benefit 7.9   15.7   26.8  
Income from commercial solar project 11.8   0.8   —  
Other 3.8   2.8   3.0  
Other income $ 46.4   $ 38.9   $ 40.6  
Evergy Kansas Central
AFUDC equity $ 15.5   $ 12.5   $ 6.4  

Corporate-owned life insurance policy benefit 7.4   14.9   26.5  
Other 2.5   1.3   1.4  
Other income $ 25.4   $ 28.7   $ 34.3  
Evergy Metro
AFUDC equity $ 4.9   $ 7.1   $ 4.4  

Other 1.2   1.8   1.2  
Other income $ 6.1   $ 8.9   $ 5.6  

Other Expense 2025 2024 2023
Evergy (millions)
Non-service cost component of net benefit cost $ ( 9.6 ) $ ( 16.6 ) $ ( 51.2 )
Corporate-owned life insurance ( 22.2 ) ( 21.3 ) ( 21.7 )
Other ( 5.2 ) ( 2.5 ) ( 2.2 )
Other expense $ ( 37.0 ) $ ( 40.4 ) $ ( 75.1 )
Evergy Kansas Central
Non-service cost component of net benefit cost $ 4.6   $ 2.1   $ ( 17.6 )
Corporate-owned life insurance ( 21.1 ) ( 20.2 ) ( 20.6 )
Other ( 0.7 ) ( 0.6 ) ( 0.5 )
Other expense $ ( 17.2 ) $ ( 18.7 ) $ ( 38.7 )
Evergy Metro
Non-service cost component of net benefit cost $ ( 9.1 ) $ ( 10.1 ) $ ( 24.8 )
Corporate-owned life insurance ( 1.1 ) ( 1.0 ) ( 1.1 )
Other ( 1.3 ) ( 1.4 ) ( 1.1 )
Other expense $ ( 11.5 ) $ ( 12.5 ) $ ( 27.0 )

Investments in Early-Stage Clean Energy and Energy Solution Companies
From time to time, Evergy has made limited non-regulated equity and debt investments in early-stage clean energy and energy solution companies. These investments are recorded in Other Assets - Long-Term on Evergy’s consolidated balance sheets and as of December 31, 2025, and December 31, 2024, the total value of these investments was $ 41.3  million and $ 121.4  million, respectively. These investments have historically not had a significant impact on Evergy’s results of operations.
In 2025, Evergy recorded $ 48.7  million of losses in investment earnings (loss) on its consolidated statements of income and comprehensive income, resulting from a decline in fair value and losses on the sale of certain investments. The losses consisted of $ 13.5  million of realized losses and $ 35.2  million of unrealized and impairment losses.
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Evergy has initiated a process to dispose of these investments and could experience additional losses or gains on these investments as a result of further changes in their value or upon their ultimate liquidation.
Earnings Per Share
To compute basic earnings per common share (EPS), Evergy divides net income attributable to Evergy, Inc. by the weighted average number of common shares outstanding. Diluted EPS includes the effect of issuable common shares resulting from restricted share units (RSUs), convertible notes, a warrant and forward sale agreements entered into through Evergy's at-the-market (ATM) equity offering program. Evergy computes the dilutive effects of potential issuances of common shares using the treasury stock method, the contingently issuable share method or the if-converted method, as applicable.
The following table reconciles Evergy's basic and diluted EPS.

  2025 2024 2023
Income (millions, except per share amounts)
Net income $ 867.9   $ 885.8   $ 743.6  
Less: Net income attributable to noncontrolling interests
12.3   12.3   12.3  
Net income attributable to Evergy, Inc. $ 855.6   $ 873.5   $ 731.3  
Common Shares Outstanding    
Weighted average number of common shares outstanding - basic 230.5   230.3   230.0  
Add: effect of dilutive securities 3.1   0.3   0.5  
Diluted average number of common shares outstanding 233.6   230.6   230.5  
Basic EPS $ 3.71   $ 3.79   $ 3.18  
Diluted EPS $ 3.66   $ 3.79   $ 3.17  

The effect of dilutive securities for 2025 included 2.6  million shares resulting from Evergy's convertible notes. There was no dilution resulting from Evergy's convertible notes in 2024 or 2023.
The table below summarizes the anti-dilutive securities excluded from the computation of diluted EPS.

Anti-Dilutive Securities 2025 2024 2023
(shares in millions)

Common shares issuable pursuant to a warrant —   —   4.0  
RSUs with performance measures 0.1 —   —  

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Supplemental Cash Flow Information

Evergy
Year Ended December 31 2025 2024 2023
Cash paid for (received from): (millions)
Interest, net of amount capitalized $ 586.7   $ 538.5   $ 500.9  
Interest of VIEs 16.1   13.1   —  

Non-cash investing transactions:
Property, plant and equipment additions 316.1   277.5   251.3  
Non-cash financing transactions:
Issuance of common stock for reinvested dividends 7.8   —   —  

Evergy Kansas Central
Year Ended December 31 2025 2024 2023
Cash paid for (received from): (millions)
Interest, net of amount capitalized $ 229.6   $ 220.6   $ 195.3  

Non-cash investing transactions:
Property, plant and equipment additions 159.5   158.0   134.1  

Evergy Metro
Year Ended December 31 2025 2024 2023
Cash paid for (received from): (millions)
Interest, net of amount capitalized $ 151.4   $ 145.9   $ 134.3  

Non-cash investing transactions:
Property, plant and equipment additions 65.5   86.3   83.2  

Dividends Declared
In February 2026, Evergy's Board of Directors (Evergy Board) declared a quarterly dividend of $ 0.6950 per share on Evergy's common stock.  The common stock dividend is payable March 20, 2026, to shareholders of record as of March 10, 2026.
In February 2026, Evergy Kansas Central's Board of Directors and Evergy Metro's Board of Directors each declared a cash dividend to Evergy of up to $ 50.0  million payable on or before March 19, 2026.
Missouri Legislation
In April 2025, Missouri Senate Bill (SB) 4 was signed into law by the Governor of Missouri. Most notably, SB 4 establishes new mechanisms for Missouri electric utilities to recover the costs associated with the construction of new natural gas-fired generating units. The utilities will be able to include certain costs of CWIP in rate base. The inclusion of CWIP will be in lieu of AFUDC applicable to the construction of the new natural gas-fired generating units. The MPSC will determine the amount of CWIP that may be included in rate base. Additionally, amounts collected arising from the inclusion of CWIP in rate base are subject to refund under certain circumstances. These provisions are scheduled to expire at the end of 2035. Additionally, the law extends Missouri's existing plant-in service accounting (PISA) provisions to include certain natural gas-fired generating units as qualifying electric plants and extends the sunset date of these provisions through the end of 2035. These provisions allow electric utilities to defer to a regulatory asset for recovery in a subsequent general rate case 85 % of depreciation expense and the associated return on investment for qualifying electric plant rate base additions for assets placed in-service between general rate cases.
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Natural Gas Plant Investments
The Evergy Companies use integrated resource plans (IRPs), detailed analyses that estimate factors that influence the future supply and demand for electricity, to inform the manner in which they supply electricity. The most recent IRPs incorporate the latest SPP resource adequacy requirements and anticipated load growth. Based on these and other factors, the IRP indicated the addition of new supply side resources, including combined and simple cycle natural gas plants, would be needed.

In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants located in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly-own each plant and expect each plant to have an initial generating capacity of approximately 705 MWs. The first plant, a combined cycle gas turbine (CCGT) facility located in Sumner County, is expected to begin operations by spring of 2029 and the second plant, a CCGT facility located in Reno County, is expected to begin operations by spring of 2030.
Additionally, Evergy Missouri West plans to construct a 440 MW simple-cycle natural gas plant located in Missouri. The plant is expected to begin operations in 2030.
In 2024, Evergy Kansas Central and Evergy Missouri West requested predetermination from the KCC and a Certificate of Convenience and Necessity (CCN) from the MPSC, respectively, for their planned natural gas investments. In July 2025, the KCC approved a non-unanimous partial settlement agreement regarding Evergy Kansas Central's investments in its planned natural gas plants. In July 2025, the MPSC approved a non-unanimous stipulation and agreement regarding Evergy Missouri West's investments in its planned natural gas plants. See "Applications for Predetermination" and "Requests for Certificate of Convenience and Necessity" in Note 4 for additional information regarding Evergy Kansas Central's and Evergy Missouri West's applications for predetermination and a CCN for their investments in these natural gas plants.
Renewable Plant Investments
Evergy Kansas Central intends to construct and own an approximately 159 MW solar generation facility, to be located in Douglas County Kansas, called Kansas Sky. In July 2024, a lawsuit was filed in the District Court of Douglas County, Grant Township, et al. v. Board of County Commissioners , requesting the court to overturn Douglas County's approval of the application to construct the solar generation facility. Due to the ongoing litigation, including the court's granting of an emergency injunction in December 2024 which temporarily prohibits the construction of the solar generation facility, Evergy Kansas Central is not able to estimate when the solar generation facility will begin operations. In July 2025, the KCC approved a unanimous partial settlement agreement for the Kansas Sky solar investment. See "Applications for Predetermination" in Note 4 for additional information regarding Evergy Kansas Central's application for predetermination for its investment in this renewable generating plant.
In 2024, Evergy Missouri West entered into agreements to own two solar generation facilities currently under development. The first facility, to be called Sunflower Sky, is a solar generation facility to be located in Kansas with an expected generating capacity of approximately 65 MWs. In September 2025, Evergy Missouri West acquired the Sunflower Sky solar facility assets from the developer and will complete construction of the facility. The second facility, to be called Foxtrot, is a solar generation facility to be located in Missouri with an expected generating capacity of approximately 100 MWs. In November 2025, Evergy Missouri West acquired the Foxtrot solar facility assets from the developer and will complete construction of the facility. The solar generation facilities are expected to begin operations by summer of 2027. In July 2025, the MPSC approved a unanimous stipulation and agreement regarding Evergy Missouri West's planned investments in the solar generation facilities. See "Requests for Certificate of Convenience and Necessity" in Note 4 for additional information regarding Evergy Missouri West's application for a CCN for its investment in these renewable generating plants.
New Accounting Pronouncements
Improvements to Income Tax Disclosures
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Improvements to Income Tax Disclosures. This ASU is intended to improve the transparency and
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decision usefulness of income tax disclosures primarily by enhancing consistency in the categorization and disaggregation of information included in the effective tax rate reconciliation and income taxes paid by jurisdiction. This guidance is effective for annual periods beginning after December 15, 2025. The Evergy Companies adopted ASU No. 2023-09 retrospectively and it is reflected for all periods presented. The adoption of ASU No. 2023-09 did not have a material impact on the Evergy Companies' results of operations, financial positions, or cash flows. See Note 20 for further detail on the updated presentation.
Income Statement — Reporting Comprehensive Income: Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income: Expense Disaggregation Disclosures. This ASU is intended to enhance income statement expense disclosures by requiring disaggregated information about specific expenses categories in commonly presented income statement expense captions. ASU No. 2024-03 is effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Evergy Companies are currently evaluating the disclosure impact of this ASU on their respective consolidated financial statements.

2. REVENUE
Evergy's, Evergy Kansas Central's and Evergy Metro's revenues disaggregated by customer class are summarized in the following tables.

Evergy

2025 2024 2023
Revenues (millions)
Residential $ 2,198.6   $ 2,186.6   $ 2,036.7  
Commercial 1,950.5   1,963.7   1,832.4  
Industrial 649.9   682.0   625.9  
Other retail 45.7   43.3   43.2  
Total electric retail $ 4,844.7   $ 4,875.6   $ 4,538.2  
Wholesale 312.8   320.5   373.5  
Transmission 520.6   482.6   403.2  
Industrial steam and other 27.0   25.7   30.2  
Total revenue from contracts with customers $ 5,705.1   $ 5,704.4   $ 5,345.1  
Other 256.5   142.9   163.1  
Operating revenues $ 5,961.6   $ 5,847.3   $ 5,508.2  

Evergy Kansas Central

2025 2024 2023
Revenues (millions)
Residential $ 960.3   $ 983.5   $ 821.0  
Commercial 816.3   842.7   722.9  
Industrial 425.0   448.9   398.5  
Other retail 24.3   25.2   18.1  
Total electric retail $ 2,225.9   $ 2,300.3   $ 1,960.5  
Wholesale 266.2   237.2   296.8  
Transmission 483.0   455.0   385.8  
Other 2.6   2.7   2.1  
Total revenue from contracts with customers $ 2,977.7   $ 2,995.2   $ 2,645.2  
Other 82.6   11.9   53.2  
Operating revenues $ 3,060.3   $ 3,007.1   $ 2,698.4  

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Evergy Metro

2025 2024 2023
Revenues (millions)
Residential $ 750.6   $ 738.8   $ 748.4  
Commercial 781.5   776.7   778.9  
Industrial 131.8   132.7   130.9  
Other retail 11.8   10.3   12.7  
Total electric retail $ 1,675.7   $ 1,658.5   $ 1,670.9  
Wholesale 38.7   82.6   91.9  
Transmission 25.7   19.9   14.3  
Other 4.3   3.7   3.3  
Total revenue from contracts with customers $ 1,744.4   $ 1,764.7   $ 1,780.4  
Other 171.7   129.0   108.6  
Operating revenues $ 1,916.1   $ 1,893.7   $ 1,889.0  

Retail Revenues
The Evergy Companies' retail revenues are generated by the regulated sale of electricity to their residential, commercial and industrial customers within their franchised service territories. The Evergy Companies recognize revenue on the sale of electricity to their customers over time as the service is provided in the amount they have a right to invoice. Retail customers are billed monthly at the tariff rates approved by the KCC and MPSC based on customer kWh usage.
Revenues recorded include electric services provided but not yet billed by the Evergy Companies. Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the month. This estimate is based on net system kWh usage less actual billed kWhs. The Evergy Companies' estimated unbilled kWhs are allocated and priced by regulatory jurisdiction across the rate classes based on actual billing rates.
The Evergy Companies also collect sales taxes and franchise fees from customers concurrent with revenue-producing activities that are levied by state and local governments. These items are excluded from revenue, and thus not reflected on the statements of income and comprehensive income, for Evergy, Evergy Kansas Central and Evergy Metro.
Wholesale Revenues
The Evergy Companies' wholesale revenues are generated by the sale of wholesale power and capacity in circumstances when the power that the Evergy Companies generate is not required for customers in their service territory. These sales primarily occur within the SPP Integrated Marketplace. The Evergy Companies also purchase power from the SPP Integrated Marketplace and record sale and purchase activity on a net basis in wholesale revenue or fuel and purchased power expense. In addition, the Evergy Companies sell wholesale power and capacity through bilateral contracts to other counterparties, such as electric cooperatives, municipalities and other electric utilities.
For both wholesale sales to the SPP Integrated Marketplace and through bilateral contracts, the Evergy Companies recognize revenue on the sale of wholesale electricity to their customers over time as the service is provided in the amount they have a right to invoice.
Wholesale sales within the SPP Integrated Marketplace are billed weekly based on the fixed transaction price determined by the market at the time of the sale and the megawatt hour (MWh) quantity sold. Wholesale sales from bilateral contracts are billed monthly based on the contractually determined transaction price and the kWh quantity sold.
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Transmission Revenues
The Evergy Companies' transmission revenues are generated by the use of their transmission networks by the SPP. To enable optimal use of the diverse generating resources in the SPP region, the Evergy Companies, as well as other transmission owners, allow the SPP to access and operate their transmission networks. As new transmission lines are constructed, they are included in the transmission network available to the SPP. In exchange for providing access, the SPP pays the Evergy Companies consideration determined by formula rates approved by the Federal Energy Regulatory Commission (FERC), which include the cost to construct and maintain the transmission lines and a return on investment. The price for access to the Evergy Companies' transmission networks are updated annually based on projected costs. Projections are updated to actual costs and the difference is included in subsequent year's prices.
The Evergy Companies have different treatment for their legacy transmission facilities within the SPP, which results in different levels of transmission revenue being received from the SPP. Evergy Kansas Central's transmission revenues from SPP include amounts that Evergy Kansas Central pays to the SPP on behalf of its retail electric customers for the use of Evergy Kansas Central's legacy transmission facilities. These transmission revenues are mostly offset by SPP network transmission cost expense that Evergy Kansas Central pays on behalf of its retail customers. Evergy Metro and Evergy Missouri West do not pay the SPP for their retail customers’ use of the Evergy Metro and Evergy Missouri West legacy transmission facilities and correspondingly, their transmission revenues also do not reflect the associated transmission revenue from the SPP.
The Evergy Companies recognize revenue on the sale of transmission service to their customers over time as the service is provided in the amount they have a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by FERC formula transmission rates along with other SPP-specific charges and the MW quantity sold.
Industrial Steam and Other Revenues
Evergy's industrial steam and other revenues are primarily generated by the regulated sale of industrial steam to Evergy Missouri West's steam customers. Evergy recognizes revenue on the sale of industrial steam to its customers over time as the service is provided in the amount that it has the right to invoice. Steam customers are billed on a monthly basis at the tariff rate approved by the MPSC based on customer MMBtu usage.
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3. RECEIVABLES
The Evergy Companies' receivables are detailed in the following table.

December 31
2025 2024
Evergy (millions)
Customer accounts receivable - billed $ 10.0   $ 2.7  
Customer accounts receivable - unbilled 108.9   108.4  
Other receivables 110.6   150.0  
Allowance for credit losses ( 15.3 ) ( 15.7 )
Total $ 214.2   $ 245.4  
Evergy Kansas Central

Customer accounts receivable - unbilled $ 42.8   $ 36.0  
Other receivables 101.1   104.9  
Allowance for credit losses ( 7.3 ) ( 7.8 )
Total $ 136.6   $ 133.1  
Evergy Metro    

Customer accounts receivable - unbilled $ 30.0   $ 28.5  
Other receivables 21.6   35.4  
Allowance for credit losses ( 5.7 ) ( 5.8 )
Total $ 45.9   $ 58.1  

The Evergy Companies' other receivables as of December 31, 2025 and 2024, consisted primarily of receivables from partners in jointly-owned electric utility plants, wholesale sales receivables and receivables related to alternative revenue programs.
The Evergy Companies' other receivables also included receivables from contracts with customers as summarized in the following table.

December 31

2025 2024
(millions)
Evergy $ 64.2   $ 68.9  
Evergy Kansas Central 59.7   65.3  
Evergy Metro 2.9   2.6  

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The change in the Evergy Companies' allowance for credit losses is summarized in the following table.

2025 2024
Evergy (millions)
Beginning balance January 1 $ 15.7   $ 24.2  
Credit loss expense 20.4   11.7  
Write-offs ( 32.4 ) ( 32.5 )
Recoveries of prior write-offs 11.6   12.3  
Ending balance December 31 $ 15.3   $ 15.7  
Evergy Kansas Central
Beginning balance January 1 $ 7.8   $ 11.6  
Credit loss expense 10.4   6.6  
Write-offs ( 15.6 ) ( 15.6 )
Recoveries of prior write-offs 4.7   5.2  
Ending balance December 31 $ 7.3   $ 7.8  
Evergy Metro
Beginning balance January 1 $ 5.8   $ 7.9  
Credit loss expense 6.8   4.5  
Write-offs ( 11.8 ) ( 11.6 )
Recoveries of prior write-offs 4.9   5.0  
Ending balance December 31 $ 5.7   $ 5.8  

Sale of Accounts Receivable
Evergy Kansas Central, Evergy Metro and Evergy Missouri West sell an undivided percentage ownership interest in their retail electric accounts receivable to independent outside investors. These sales are accounted for as secured borrowings with accounts receivable pledged as collateral and a corresponding short-term collateralized note payable recognized on the balance sheets.   The Evergy Companies' accounts receivable pledged as collateral and the corresponding short-term collateralized note payable are summarized in the following table.

December 31

2025 2024
(millions)
Evergy $ 402.0   $ 401.0  
Evergy Kansas Central 213.0   215.0  
Evergy Metro 139.0   136.0  

In April 2025, Evergy Kansas Central, Evergy Metro and Evergy Missouri West extended the expiration of each receivable sale facility from November 2025 to April 2028. Evergy Kansas Central's facility allows up to $ 185.0  million in aggregate outstanding principal amount to be borrowed at any time. To the extent Evergy Kansas Central has qualifying accounts receivable and subject to the lender's discretion, Evergy Kansas Central's facility allows for an additional $ 65.0  million in aggregate outstanding principal amount to be borrowed at any time. Evergy Metro's facility allows up to $ 130.0  million in aggregate outstanding principal amount to be borrowed at any time. To the extent Evergy Metro has qualifying accounts receivable and subject to the lender's discretion, Evergy Metro's facility allows for an additional $ 70.0  million in aggregate outstanding principal amount to be borrowed at any time. Evergy Missouri West's facility allows up to $ 50.0  million in aggregate outstanding principal amount to be borrowed at any time. To the extent Evergy Missouri West has qualifying accounts receivable and subject to the lender's discretion, Evergy Missouri West's facility allows for an additional $ 65.0  million in aggregate outstanding principal amount to be borrowed at any time.
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4. RATE MATTERS AND REGULATION
KCC Proceedings
Evergy Kansas Central's 2025 Rate Case Proceeding
In January 2025, Evergy Kansas Central filed an application with the KCC to request an increase to its retail revenues of approximately $ 196  million. Evergy Kansas Central's request reflected a return on equity of 10.5 % (with a capital structure composed of 52 % equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend.
In July 2025, Evergy Kansas Central, KCC staff and other intervenors reached a unanimous settlement agreement to settle all issues in the case. The unanimous settlement agreement provides for an increase to retail revenues of $ 128.0  million after rebasing property tax expense and not including costs recoverable through KCC-approved riders for Evergy Kansas Central. In September 2025, the KCC approved the unanimous settlement agreement and new rates took effect in October 2025.
Earnings Review and Sharing
As part of the settlement agreement in Evergy Kansas Central's 2025 KCC rate case, Evergy Kansas Central agreed to participate in an earnings review surveillance report for each calendar year beginning 2025 through the time Evergy Kansas Central files its next general rate case and new base rates become effective as a result of that case. Under this mechanism, Evergy Kansas Central’s jurisdiction is required to refund customers 50 % of annual earnings in excess of a 9.7 % return on equity.
As of December 31, 2025, Evergy Kansas Central estimates its 2025 annual earnings will not result in a refund obligation under the earnings review mechanism. Evergy Kansas Central expects to file its 2025 earnings calculation with the KCC in March 2026. The final refund obligation for 2025, if any, will be decided by the KCC and could vary from the current estimate.
Applications for Predetermination
The KCC uses a process referred to as ‘predetermination’ to establish ratemaking principles and treatments for certain utility investments before they are included in a utility’s rate base. The process helps balance the interest of utilities and customers by ensuring broad agreement to the reasonableness of the investment and regulatory certainty regarding the recovery of costs associated with the investment. Investment in utility projects may be dependent on acceptable regulatory treatment determined in the predetermination process.
In November 2024, Evergy Kansas Central requested predetermination from the KCC for its planned natural gas plant investments and Kansas Sky solar investment. In April 2025, Evergy Kansas Central and intervenors in the case reached a non-unanimous partial settlement agreement regarding its planned natural gas plant investments and a unanimous partial settlement agreement regarding the Kansas Sky solar investment.
In July 2025, the KCC approved the non-unanimous partial settlement agreement for the natural gas plant investments establishing that Evergy Kansas Central's investment in its planned natural gas plants is prudent. This agreement will permit Evergy Kansas Central to implement a CWIP rider one year after construction of each plant begins and Evergy Kansas Central will recover through the CWIP rider the return on up to 100 % of amounts recorded to CWIP for each plant, not to exceed definitive cost estimates established by the KCC unless otherwise ordered by the KCC. Evergy Kansas Central will be permitted to update rates charged through the CWIP rider every six months . Evergy Kansas Central will be permitted to collect these amounts through the CWIP rider until new base rates reflecting Evergy Kansas Central's investment in the natural gas plants take effect. Evergy Kansas Central will not be able to accrue AFUDC on these amounts once the CWIP rider becomes effective and is included in customer rates. When new base rates reflecting Evergy Kansas Central's investment in each plant take effect, those base rates will include a deferral for depreciation expense incurred and carrying costs on any unrecovered portion of Evergy Kansas Central's investment in natural gas plants incurred between the time the natural gas plants are placed in service and the time the investment in the natural gas plants is included in base rates. Investments above certain amounts established in the settlement agreement will be subject to a prudence review.
In July 2025, the KCC approved the unanimous partial settlement agreement for the Kansas Sky solar investment. After the investment is placed in service and prior to the effective date of rates that include the investment, Evergy
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Kansas Central will be permitted to defer to a regulatory asset and recover over the remaining life of the Kansas Sky solar investment depreciation expense, carrying costs and other costs incurred. Thereafter, Evergy Kansas Central’s investment in Kansas Sky will be recovered through a levelized revenue requirement for the first thirty years of the life of the generation site, after which the levelized revenue requirement will be reevaluated.
In July 2024, a lawsuit was filed in the District Court of Douglas County, Grant Township, et al. v. Board of County Commissioners , requesting the court to overturn Douglas County's approval of the application to construct the solar generation facility. Due to the ongoing litigation, including the court's granting of an emergency injunction in December 2024 which temporarily prohibits construction of the solar generation facility, Evergy Kansas Central is not able to estimate when the solar generation facility will begin operations.
Evergy Kansas Central 2025 Transmission Delivery Charge (TDC)
In April 2025, the KCC issued an order adjusting Evergy Kansas Central's retail prices to include updated transmission costs as reflected in the FERC transmission formula rate (TFR). The new prices were effective in May 2025 and are expected to increase Evergy Kansas Central's annual retail revenues by $ 54.8  million when compared to 2024.
Evergy Metro 2025 TDC
In April 2025, the KCC issued an order adjusting Evergy Metro's retail prices to include updated transmission costs as reflected in the FERC TFR. The new prices were effective in May 2025 and are expected to increase Evergy Metro's annual retail revenues by $ 4.8 million when compared to 2024.
MPSC Proceedings
Evergy Metro's 2026 Rate Case Proceeding
In February 2026, Evergy Metro filed an application with the MPSC to request an increase to its retail revenues of approximately $ 140  million. Evergy Metro's request reflected a return on equity of 10.5 % (with a capital structure composed of 52 % equity) and increases related to the recovery of infrastructure investments made to improve reliability and enhance customer service and the update of expenses to current levels of spend. New rates are expected to be effective in January 2027.

Evergy Missouri West's 2024 Rate Case Proceeding
In January 2025, Evergy Missouri West implemented new rates approved by the MPSC in December 2024 providing for an increase to Evergy Missouri West's retail revenues of approximately $ 55  million after lowering base rates for fuel and purchased power expense of approximately $ 49  million and rebasing property tax expense.
Requests for Certificate of Convenience and Necessity
Missouri utilities must request a CCN from the MPSC to authorize them to build certain utility projects. The CCN process authorizes utilities to build projects and can provide assurance that the project is prudent and necessary. Investment in projects is dependent upon the granting by the MPSC of a CCN with reasonably acceptable terms.
In 2024, Evergy Missouri West filed applications for CCNs for its planned renewable and natural gas plant investments. In May 2025, Evergy Missouri West entered into a unanimous stipulation and agreement with the MPSC staff and other intervenors that would grant Evergy Missouri West’s CCNs to construct, install, own, operate, maintain and otherwise control and manage Sunflower Sky and Foxtrot solar generating facilities. In May 2025, Evergy Missouri West entered into a non-unanimous stipulation and agreement with the MPSC staff and other intervenors that would grant Evergy Missouri West’s CCNs to construct, install, own, operate, maintain and otherwise control and manage its planned natural gas plant investments.
In July 2025, the MPSC approved the unanimous stipulation and agreement for Sunflower Sky and Foxtrot solar generating facilities granting Evergy Missouri West's CCN request for its planned renewable plant investments. Evergy Missouri West plans to utilize PISA, as applicable, for its planned renewable plant investments.
In July 2025, the MPSC approved the non-unanimous stipulation and agreement for the natural gas plant investments granting Evergy Missouri West's CCN and establishing that Evergy Missouri West’s planned
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investments in the natural gas plants are decisionally prudent. Evergy Missouri West intends to utilize the SB 4 CWIP inclusion provision and PISA, as applicable, for its planned investments in the natural gas plants.
FERC Proceedings
In October of each year, Evergy Kansas Central and Evergy Metro post an updated TFR that includes projected transmission capital expenditures and operating costs for the following year. This rate is the most significant component in the retail rate calculation for Evergy Kansas Central's and Evergy Metro's annual request with the KCC to adjust retail prices to include updated transmission costs through the TDC.
Evergy Kansas Central TFR Annual Update
Most recently, the updated TFR was expected to adjust Evergy Kansas Central's annual transmission revenues by approximately:
• $ 21.6  million increase effective in January 2026;
• $ 19.1  million increase effective in January 2025; and
• $ 115.8  million increase effective in January 2024.
Evergy Kansas Central TFR Formal Complaint
In February 2023, certain Evergy Kansas Central TFR customers submitted a formal complaint with FERC requesting the refund of over-collections related to the capital structure calculation in determining Evergy Kansas Central's Annual Transmission Revenue Requirement for the 2018 and 2019 rate years. As of December 31, 2025, and December 31, 2024, Evergy and Evergy Kansas Central had recorded a regulatory liability of $ 9.7  million and $ 7.1  million, respectively, related to the 2018 and 2019 rate year refund request. Evergy and Evergy Kansas Central are awaiting a response from FERC.
Evergy Metro TFR Annual Update
Most recently, the updated TFR was expected to adjust Evergy Metro's annual transmission revenues by approximately:
• $ 2.4  million decrease effective in January 2026;
• $ 1.0  million increase effective in January 2025; and
• $ 23.7  million increase effective in January 2024.

Regulatory Assets and Liabilities
The Evergy Companies have recorded assets and liabilities on their consolidated balance sheets resulting from the effects of the ratemaking process, which would not otherwise be recorded if they were not regulated. Regulatory assets represent incurred costs that are probable of recovery from future revenues. Regulatory liabilities represent future reductions in revenues or refunds to customers.
Management regularly assesses whether regulatory assets and liabilities are probable of future recovery or refund by considering factors such as decisions by the MPSC, KCC or FERC in Evergy Kansas Central's, Evergy Metro's and Evergy Missouri West's rate case filings; decisions in other regulatory proceedings, including decisions related to other companies that establish precedent on matters applicable to the Evergy Companies; and changes in laws and regulations. If recovery or refund of regulatory assets or liabilities is not approved by regulators or is no longer deemed probable, these regulatory assets or liabilities are recognized in the current period results of operations. The Evergy Companies continued ability to meet the criteria for recording regulatory assets and liabilities may be affected in the future by restructuring and deregulation in the electric industry or changes in accounting rules. In the event that the criteria no longer applied to any or all of the Evergy Companies' operations, the related regulatory assets and liabilities would be written off unless an appropriate regulatory recovery mechanism were provided. Additionally, these factors could result in an impairment on utility plant assets.
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The Evergy Companies' regulatory assets and liabilities are detailed in the following tables.

December 31
2025 2024
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Regulatory Assets (millions)
Pension and post-retirement costs $ 41.0   $ —   $ —   $ 47.3   $ —   $ —  
Debt reacquisition costs 68.6   64.3   4.2   74.8   69.8   4.7  
Debt fair value adjustment 76.1   —   —   81.6   —   —  
Asset retirement obligations fair value
   adjustment 122.8   —   —   121.9   —   —  
Depreciation 367.1   107.8   158.7   238.3   55.6   94.7  
Cost of removal 394.1   151.8   186.4   332.1   133.5   167.8  
Asset retirement obligations 220.4   94.8   97.3   189.0   81.5   82.2  
Analog meter unrecovered investment 4.1   4.1   —   6.2   6.2   —  
Treasury yield hedges 15.9   15.9   —   17.0   17.0   —  
Iatan No. 1 and common facilities 5.3   —   2.4   5.6   —   2.5  
Iatan No. 2 construction accounting costs 22.0   —   11.0   22.7   —   11.4  
Property taxes 40.2   4.5   32.7   26.6   —   23.7  
Disallowed plant costs 12.7   12.7   —   13.2   13.2   —  
La Cygne environmental costs 6.4   4.7   1.7   7.7   5.8   1.9  
Deferred customer programs 50.5   31.0   18.4   38.5   15.9   17.2  
Fuel recovery mechanisms 64.6   11.8   11.6   25.7   16.3   9.4  
February 2021 winter weather event —   —   —   8.3   8.3   —  
February 2021 winter weather event securitized costs 294.6   —   —   310.4   —   —  
Solar rebates —   —   —   3.4   —   —  
Transmission delivery charge 14.2   13.2   1.0   22.0   20.0   2.0  
Wolf Creek outage 26.0   13.0   13.0   14.6   7.3   7.3  
Pension and other post-retirement benefit
   non-service costs 79.0   30.5   29.7   82.4   31.0   31.9  
Retired generation facilities 102.6   —   —   120.8   —   —  
Merger transition costs 13.7   6.4   5.1   18.4   8.7   6.9  
Other regulatory assets 60.8   34.0   8.0   71.7   36.2   8.5  
Total 2,102.7   600.5   581.2   1,900.2   526.3   472.1  
Less: current portion ( 217.4 ) ( 76.7 ) ( 42.6 ) ( 180.9 ) ( 79.7 ) ( 42.7 )
Total noncurrent regulatory assets $ 1,885.3   $ 523.8   $ 538.6   $ 1,719.3   $ 446.6   $ 429.4  

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December 31
2025 2024
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Regulatory Liabilities (millions)
Taxes refundable through future rates $ 1,581.6   $ 991.0   $ 470.4   $ 1,631.4   $ 1,008.5   $ 477.7  
Nuclear production tax credits 263.1   130.5   132.6   168.6   82.4   86.2  
Deferred regulatory gain from sale
leaseback 20.6   20.6   —   26.1   26.1   —  
Emission allowances 26.2   —   26.2   30.2   —   30.2  
Nuclear decommissioning 480.4   173.3   307.1   387.2   142.1   245.1  
Pension and post-retirement costs 279.4   71.6   205.3   206.6   39.0   165.4  
Jurisdictional allowance for funds used
during construction 23.4   21.7   1.7   23.8   22.1   1.7  
La Cygne leasehold dismantling costs 29.6   29.6   —   29.6   29.6   —  

Kansas tax credits —   —   —   8.4   8.4   —  
Purchase power agreement 2.2   2.2   —   3.0   3.0   —  

Fuel recovery mechanisms 8.3   —   8.3   21.5   —   0.2  
February 2021 winter weather event 5.8   4.7   1.1   3.0   —   3.0  
Sibley AAO 26.4   —   —   52.8   —   —  

TFR refunds 9.7   9.7   —   7.1   7.1   —  
COLI rate credits refund 35.2   35.2   —   64.4   64.4   —  
Levelized rate recovery 96.2   96.2   —   65.0   65.0   —  
Other regulatory liabilities 78.1   36.3   26.6   117.1   54.7   37.4  
Total 2,966.2   1,622.6   1,179.3   2,845.8   1,552.4   1,046.9  
Less: current portion ( 141.6 ) ( 64.7 ) ( 38.0 ) ( 173.8 ) ( 76.6 ) ( 38.5 )
Total noncurrent regulatory liabilities $ 2,824.6   $ 1,557.9   $ 1,141.3   $ 2,672.0   $ 1,475.8   $ 1,008.4  

The following summarizes the nature and period of recovery for each of the regulatory assets listed in the table above.
Pension and post-retirement costs: Represent the difference between pension and post-retirement costs under GAAP and pension and post-retirement costs for ratemaking that will be recovered in future rates. Of this amount, as of December 31, 2025, $ 35.8 million is not included in rate base and is amortized over various periods.
Debt reacquisition costs: Includes costs incurred to reacquire and refinance debt. These costs are amortized over the term of the new debt or the remaining lives of the old debt issuances if no new debt was issued and are not included in rate base.
Debt fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West long-term debt at fair value in connection with the merger that created Evergy. Amount is amortized over the life of the related debt and is not included in rate base.
Asset retirement obligations fair value adjustment: Represents purchase accounting adjustments recorded to state the carrying value of Evergy Metro and Evergy Missouri West AROs at fair value in connection with the merger that created Evergy. Amount is amortized over the life of the related plant and is not included in rate base.
Depreciation: Represents depreciation and carrying costs deferred under PISA approved in Kansas and Missouri where depreciation incurred on assets placed in service prior to inclusion in rates can be deferred until the next general rate case and then amortized over a 20 -year period and included in rate base.
Cost of removal: Represents amounts spent, but not yet collected, to dispose of plant assets. This asset will decrease as removal costs are collected in rates and is included in rate base.
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Asset retirement obligations: Represents amounts associated with AROs as discussed further in Note 6. These amounts are recovered over the life of the related plant and are not included in rate base.
Analog meter unrecovered investment: Represents the deferral of unrecovered investment of retired analog meters. These costs are not included in rate base and are amortized through 2028.
Treasury yield hedges: Represents the effective portion of treasury yield hedge transactions. Amortization of this amount will be included in interest expense over the term of the related debt and is not included in rate base.
Iatan No. 1 and common facilities: Represents depreciation and carrying costs related to Iatan No. 1 and common facilities. These costs are included in rate base and amortized through 2057.
Iatan No. 2 construction accounting costs: Represents the construction accounting costs related to Iatan No. 2. These costs are included in rate base and amortized through 2059.
Property taxes: Represents actual costs incurred for property taxes in excess of amounts collected in revenues. These costs are expected to be recovered over various periods and are not included in rate base.
Disallowed plant costs: The KCC originally disallowed certain costs related to the Wolf Creek plant. In 1987, the KCC revised its original conclusion and provided for recovery of an indirect disallowance with no return on investment. This regulatory asset represents the present value of the future expected revenues to be provided to recover these costs, net of the amounts amortized.
La Cygne environmental costs: Represents the deferral of depreciation and amortization expense and associated carrying charges related to the La Cygne Station environmental project. This amount will be amortized over the life of the related asset and is included in rate base.
Deferred customer programs: Represents costs related to various energy efficiency programs that have been accumulated and deferred for future recovery. These amounts are not included in rate base and are amortized over various periods.
Fuel recovery mechanisms: Represents the actual cost of fuel consumed in producing electricity and the cost of purchased power in excess of the amounts collected from customers. This difference is expected to be recovered over a one -year period and is not included in rate base.
February 2021 winter weather event: Represents deferred extraordinary fuel and purchased power costs incurred to provide electric service as a result of the February 2021 winter weather event. These amounts are not included in rate base and were fully amortized in 2025.
February 2021 winter weather event securitized costs: Represents deferred extraordinary fuel and purchased power costs incurred to provide electric service as a result of the February 2021 winter weather event. In February 2024, Evergy Missouri West securitized this asset. Evergy Missouri West expects to recover the amounts through 2038.
Solar rebates: Represents costs associated with solar rebates provided to retail electric customers. These amounts are not included in rate base and were fully amortized in 2025.
Transmission delivery charge: Represents costs associated with the transmission delivery charge. The amounts are not included in rate base and are amortized over a one -year period.
Wolf Creek outage: Represents deferred expenses associated with Wolf Creek's scheduled refueling and maintenance outages. These expenses are amortized during the period between planned outages and are not included in rate base.
Pension and other post-retirement benefit non-service costs: Represents the non-service component of pension and post-retirement net benefit costs that are capitalized as authorized by regulators. The amounts are included in rate base and are recovered over the life of the related asset.
Retired generation facilities: Represents amounts to be recovered for facilities that have been retired, are not included in rate base and recovered through 2030.
Merger transition costs: Represents recoverable transition costs related to the merger that created Evergy. The amounts are not included in rate base and are recovered through 2028.
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Other regulatory assets: Includes various regulatory assets that individually are small in relation to the total regulatory asset balance. Of these amounts, $ 5.5 million, $ 4.9 million and $ 0.3 million for Evergy, Evergy Kansas Central and Evergy Metro, respectively, are included in rate base and are amortized over various periods.
The following summarizes the nature and period of amortization for each of the regulatory liabilities listed in the table above.
Taxes refundable through future rates: Represents the obligation to return to customers income taxes recovered in earlier periods when corporate income tax rates were higher than current income tax rates. A large portion of this amount is related to depreciation and will be refunded to customers over the life of the applicable property.
Nuclear production tax credits: Represents nuclear production tax credits (PTCs) generated by Wolf Creek. The benefits from these credits are expected to be refunded to customers in future rates following the monetization of the credits.
Deferred regulatory gain from sale leaseback: Represents the gain Evergy Kansas South recorded on the 1987 sale and leaseback of its 50 % interest in La Cygne Unit 2. The gain is amortized over the term of the lease.
Emission allowances: Represents deferred gains related to the sale of emission allowances to be refunded to customers.
Nuclear decommissioning: Represents the difference between the fair value of the assets held in the nuclear decommissioning trust and the amount recorded for the accumulated accretion and depreciation expense associated with the asset retirement obligation related to Wolf Creek.
Pension and post-retirement costs: Represents the difference between pension and post-retirement costs under GAAP, including accumulated unrecognized gains, and pension and post-retirement costs for ratemaking that will be refunded in future rates.
Jurisdictional allowance for funds used during construction: Represents AFUDC that is accrued subsequent to the time the associated construction charges are included in prices and prior to the time the related assets are placed in service. The AFUDC is amortized to depreciation expense over the useful life of the asset that is placed in service.
La Cygne leasehold dismantling costs: Represents amounts collected but not yet spent on the contractual obligation to dismantle a portion of La Cygne Unit 2. The obligation will be discharged as the unit is dismantled.
Kansas tax credits: Represents Kansas tax credits on investment in utility plant. Amounts will be credited to customers subsequent to the realization of the credits over the remaining lives of the utility plant giving rise to the tax credits.
Purchase power agreement: Represents the amount included in retail electric rates from customers in excess of costs incurred under purchase power agreements. Amounts are amortized over a five -year period.
Fuel recovery mechanisms: Represents the amount collected from customers in excess of the actual cost of fuel consumed in producing electricity and the cost of purchased power. This difference is expected to be refunded over a one -year period.
February 2021 winter weather event: Represents refunds to customers related to a February 2021 winter weather event.
Sibley accounting authority order: These amounts were collected in connection with an accounting authority order (AAO) granted by the MPSC in October 2019 and represent revenues that Evergy Missouri West collected from customers for the return on its unrecovered investment in Sibley Station, non-fuel operations and maintenance costs and other costs associated with Sibley Station following its retirement in November 2018. The amended final order in Evergy Missouri West's 2022 rate case required Evergy Missouri West to refund these revenues to customers over a four -year period.
TFR refunds: These amounts are associated with a formal complaint certain Evergy Kansas Central TFR customers submitted with FERC requesting the refund of over-collections related to the capital structure calculation
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in determining Evergy Kansas Central's Annual Transmission Revenue Requirement for the 2018 and 2019 rate years. See "Evergy Kansas Central TFR Formal Complaint" within this Note 4 for additional information.
COLI rate credits refund: Represents the amount ordered to be refunded by Evergy Kansas Central to customers and will be amortized through 2027, to account for the difference between the expected amount of COLI rate credits approved and the actual amount of COLI rate credits received by customers from 1987 through 2023.
Levelized rate recovery: Instead of traditional ratemaking, the KCC ordered that Evergy Kansas Central recover the costs of several owned wind farms through a levelized revenue requirement. The levelized recovery of costs defers the rates intended to recover allowable costs for each wind farm beyond the period in which those costs would be charged to expense under traditional ratemaking. The regulatory liability represents the cumulative amount collected in accordance with the ordered ratemaking treatment in excess of the amount that would have been collected under traditional ratemaking.
Other regulatory liabilities: Includes various regulatory liabilities that individually are relatively small in relation to the total regulatory liability balance. These amounts will be credited over various periods.

5. GOODWILL
GAAP requires goodwill to be tested for impairment annually and when an event occurs indicating the possibility that an impairment exists. Evergy's impairment test for the $ 2,336.6 million of goodwill that was recorded as a result of the merger that created Evergy was conducted as of May 1, 2025. The goodwill impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill, to identify potential impairment. In the event that the carrying amount exceeds the fair value of the reporting unit, an impairment loss is recognized for the difference between the carrying amount of the reporting unit and its fair value. Evergy's consolidated operations are considered one reporting unit for assessment of impairment, as management assesses financial performance and allocates resources on a consolidated basis. The determination of fair value of the reporting unit consisted of two valuation techniques: an income approach consisting of a discounted cash flow analysis and a market approach consisting of a determination of reporting unit invested capital using a market multiple derived from the historical earnings before interest, income taxes, depreciation and amortization and market prices of the stock of peer companies. The results of the two techniques were evaluated and weighted to determine a point within the range that management considered representative of fair value for the reporting unit. The fair value of the reporting unit exceeded the carrying amount, including goodwill. As a result, there was no impairment of goodwill in 2025 or 2024.

6. ASSET RETIREMENT OBLIGATIONS
AROs associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes in the estimated fair values of the liabilities are recognized when known.
Evergy Kansas Central, Evergy Metro and Evergy Missouri West have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). In addition, Evergy Kansas Central and Evergy Metro have AROs related to decommissioning Wolf Creek and the retirement of wind generation facilities.
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The following table summarizes the change in the Evergy Companies' AROs for the periods ending December 31, 2025 and 2024.

Evergy Evergy Kansas Central Evergy Metro
2025 2024 2025 2024 2025 2024
(millions)
Beginning balance January 1 $ 1,297.0   $ 1,203.1   $ 647.8   $ 599.3   $ 502.7   $ 460.4  

Additions —   72.8   —   44.8   —   24.1  
Revision in timing and/or estimates ( 5.3 ) ( 28.0 ) ( 5.3 ) ( 24.3 ) —   ( 0.5 )
Settlements ( 13.3 ) ( 12.1 ) ( 7.8 ) ( 7.4 ) ( 5.3 ) ( 4.3 )
Accretion 63.9   61.2   37.6   35.4   24.1   23.0  
Ending balance $ 1,342.3   $ 1,297.0   $ 672.3   $ 647.8   $ 521.5   $ 502.7  
Less: current portion ( 34.2 ) ( 28.7 ) ( 18.3 ) ( 16.5 ) ( 15.0 ) ( 11.8 )
Total noncurrent asset
   retirement obligation $ 1,308.1   $ 1,268.3   $ 654.0   $ 631.3   $ 506.5   $ 490.9  

In 2024, Evergy, Evergy Kansas Central and Evergy Metro recorded $ 72.8  million, $ 44.8  million and $ 24.1  million of ARO liabilities, respectively, related to the new Environmental Protection Agency (EPA) CCR regulation focused on legacy surface impoundments and historic placements of CCR. This regulation expands applicability of the 2015 CCR regulation to inactive landfills and beneficial use sites not previously regulated. The Evergy Companies recorded an offsetting balance to property, plant and equipment, net, or a regulatory asset for each ARO liability. See Note 15 for additional information regarding the regulation of CCRs.

7. PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and equipment of Evergy, Evergy Kansas Central and Evergy Metro.

December 31, 2025 Evergy Evergy Kansas Central Evergy Metro
(millions)
Electric plant in service $ 38,218.9   $ 18,893.6   $ 14,001.3  
Electric plant acquisition adjustment 739.8   724.9   —  
Accumulated depreciation ( 14,986.6 ) ( 7,308.5 ) ( 6,110.5 )
Plant in service 23,972.1   12,310.0   7,890.8  
Construction work in progress 2,120.6   1,045.8   453.6  
Nuclear fuel, net 208.8   104.3   104.5  

Net property, plant and equipment $ 26,301.5   $ 13,460.1   $ 8,448.9  

December 31, 2024 Evergy Evergy Kansas Central Evergy Metro
(millions)
Electric plant in service $ 36,444.9   $ 17,914.9   $ 13,468.3  
Electric plant acquisition adjustment 742.9   724.9   —  
Accumulated depreciation ( 14,165.5 ) ( 6,914.4 ) ( 5,752.6 )
Plant in service 23,022.3   11,725.4   7,715.7  
Construction work in progress 1,707.0   1,053.7   476.1  
Nuclear fuel, net 200.9   100.3   100.6  
Plant to be retired, net (a)
0.7   0.7   —  
Net property, plant and equipment $ 24,930.9   $ 12,880.1   $ 8,292.4  

(a) As of December 31, 2024, represents the planned retirement of Evergy Kansas Central analog meters prior to the end of their remaining useful lives.
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The following table summarizes the property, plant and equipment of the VIE for Evergy and Evergy Kansas Central.

December 31
2025 2024
(millions)
Electric plant of VIEs $ 392.1   $ 392.1  
Accumulated depreciation of VIEs ( 272.7 ) ( 265.6 )
Net property, plant and equipment of VIEs $ 119.4   $ 126.5  

Depreciation Expense
The Evergy Companies' depreciation expense is detailed in the following table.

2025 2024 2023
(millions)
Evergy (a)
$ 944.2   $ 965.9   $ 943.3  
Evergy Kansas Central (a)
512.2   542.3   497.7  
Evergy Metro 283.3   294.6   319.7  

(a) Approximately $ 7.1 million of depreciation expense in each of 2025, 2024 and 2023 was attributable to property, plant and equipment of VIEs.

8. JOINTLY-OWNED ELECTRIC UTILITY PLANTS
Evergy's, Evergy Kansas Central's and Evergy Metro's share of jointly-owned electric utility plants at December 31, 2025, are detailed in the following tables.

Evergy
Evergy's share Electric plant in service Accumulated depreciation Nuclear fuel, net Construction work in progress 2026 accredited capacity-MWs

(millions, except MW amounts)
Wolf Creek Unit 94   % $ 4,444.6   $ 2,395.8   $ 208.8   $ 291.6   1,106  
La Cygne Units (a)
100   % 2,425.9   1,161.9   —   35.9 1,426  
Iatan No. 1 Unit 88   % 830.4   333.5   —   7.5 618  
Iatan No. 2 Unit 73   % 1,433.8   519.2   —   2.8 653  
Iatan Common 79   % 524.3   157.3   —   9.2 n/a
Jeffrey Energy Center 100   % 2,764.7   1,177.6   —   71.2 2,183  
State Line 40   % 140.3   107.6   —   5.6 211  
Dogwood Energy Center 22   % 90.6   49.6   —   7.1   145  
Sumner County CCGT Facility (b)
100   % —   —   —   201.0   n/a
Reno County CCGT Facility (b)
100   % —   —   —   166.2   n/a

(a)     The VIE consolidated by Evergy and Evergy Kansas Central holds its 50 % leasehold interest in La Cygne Unit 2. This 50 % leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 19 for additional information.
(b)     Combined-cycle natural gas plants currently under construction in Kansas, jointly-owned by Evergy Kansas Central and Evergy Missouri West. See Note 1, Natural Gas Plant Investments for additional information.
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Evergy Kansas Central
Evergy Kansas Central's share Electric plant in service Accumulated depreciation Nuclear fuel, net Construction work in progress 2026 accredited capacity-MWs

(millions, except MW amounts)
Wolf Creek Unit 47   % $ 2,169.2   $ 1,165.8   $ 104.3   $ 138.0   553  
La Cygne Units (a)
50   % 1,162.0   620.0   —   19.5   713  
Jeffrey Energy Center 92   % 2,530.7   1,075.7   —   65.5   2,008  
State Line 40   % 140.3   107.6   —   5.6   211  
Sumner County CCGT Facility (b)
50   % —   —   —   100.7   n/a
Reno County CCGT Facility (b)
50   % —   —   —   84.5   n/a

(a)     The VIE consolidated by Evergy and Evergy Kansas Central holds its 50 % leasehold interest in La Cygne Unit 2. This 50 % leasehold interest in La Cygne Unit 2 is reflected in the information provided above. See Note 19 for additional information.
(b)     Combined-cycle natural gas plants currently under construction in Kansas, jointly-owned by Evergy Kansas Central and Evergy Missouri West. See Note 1, Natural Gas Plant Investments for additional information.

Evergy Metro
Evergy Metro's share Electric plant in service Accumulated depreciation Nuclear fuel, net Construction work in progress 2026 accredited capacity-MWs

(millions, except MW amounts)
Wolf Creek Unit 47   % $ 2,275.4   $ 1,230.0   $ 104.5   $ 153.6   553  
La Cygne Units 50   % 1,263.9   541.9   —   16.4   713  
Iatan No. 1 Unit 70   % 646.0   277.1   —   6.0   492  
Iatan No. 2 Unit 55   % 1,081.9   471.9   —   2.1   491  
Iatan Common 61   % 416.0   140.2   —   6.9    n/a

Each owner must fund its own portion of the plant's operating expenses and capital expenditures. The Evergy Companies' share of direct expenses are included in the appropriate operating expense classifications in Evergy's, Evergy Kansas Central's and Evergy Metro's consolidated financial statements.

9. PENSION PLANS AND POST-RETIREMENT BENEFITS
Evergy and certain of its subsidiaries maintain, and Evergy Kansas Central and Evergy Metro participate in, qualified non-contributory defined benefit pension plans covering the majority of Evergy Kansas Central's and Evergy Metro's employees as well as certain non-qualified plans covering certain active and retired officers.
For the majority of employees, pension benefits under these plans reflect the employees' compensation, years of service and age at retirement. However, for the plan covering Evergy Kansas Central's employees, the benefits for non-union employees hired between 2002 and the second quarter of 2018 and union employees hired beginning in 2012 are derived from a cash balance account formula. The plan was closed to future non-union employees in 2018. For the plans covering Evergy Metro's employees, the benefits for union employees hired beginning in 2014 are derived from a cash balance account formula and the plans were closed to future non-union employees in 2014.
Evergy and its subsidiaries also provide certain post-retirement health care and life insurance benefits for substantially all retired employees of Evergy Kansas Central and Evergy Metro and their respective shares of Wolf Creek's post-retirement benefit plans.
The Evergy Companies record pension and post-retirement expense in accordance with rate orders from the KCC and MPSC that allow the difference between pension and post-retirement costs under GAAP and costs for
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ratemaking to be recognized as a regulatory asset or liability.  This difference between financial and regulatory accounting methods is due to timing and will be eliminated over the life of the plans.
For 2025, Evergy, Evergy Kansas Central and Evergy Metro recorded net pension settlement (gains) and special termination benefit expense of $ 7.6  million, $ 2.2  million and $ 5.4  million, respectively. For 2025, Evergy, Evergy Kansas Central and Evergy Metro recorded net post-retirement settlement (gains) and special termination benefit expense of $( 6.4 ) million, $( 3.5 ) million and $( 2.9 ) million, respectively. For 2024, Evergy and Evergy Kansas Central recorded pension special termination benefit expense of $ 0.2  million. For 2023, Evergy, Evergy Kansas Central and Evergy Metro recorded pension settlement (gains) and losses of $( 21.1 ) million, $ 1.1  million and $( 22.2 ) million, respectively. These settlement (gains) and losses and special termination benefits were the result of accelerated distributions and enhanced pension distributions as a result of employee retirements for certain plan participants, as well as the sale of certain life insurance liabilities. Evergy, Evergy Kansas Central and Evergy Metro deferred substantially all of the (gains), losses and expense to regulatory assets or regulatory liabilities and expect to recover these amounts over future periods pursuant to regulatory agreements.
The following pension benefits tables provide information relating to the funded status of all defined benefit pension plans on an aggregate basis as well as the components of net periodic benefit costs. For financial reporting purposes, the market value of plan assets is the fair value. Net periodic benefit costs reflect total plan benefit costs prior to the effects of capitalization and sharing with joint owners of power plants.

Evergy
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Change in projected benefit obligation (PBO) (millions)
PBO as of January 1 $ 1,665.0   $ 1,704.4   $ 180.9   $ 192.8  
Service cost 45.2   46.0   1.5   1.6  
Interest cost 94.2   89.5   9.5   10.1  
Contribution by participants —   —   2.6   5.6  
Plan amendments —   —   0.1   4.2  
Actuarial (gain) loss 14.2   ( 60.7 ) 7.3   ( 13.0 )
Benefits paid ( 119.1 ) ( 106.4 ) ( 16.5 ) ( 20.4 )
Settlements ( 0.7 ) —   ( 38.7 ) —  
Special termination benefits 8.3   0.2   3.9   —  
Other ( 8.7 ) ( 8.0 ) —   —  
PBO as of December 31 $ 1,698.4   $ 1,665.0   $ 150.6   $ 180.9  
Change in plan assets
Fair value of plan assets as of January 1 $ 1,299.4   $ 1,250.7   $ 203.0   $ 201.5  
Actual return on plan assets 185.8   122.2   21.1   14.2  
Contributions by employer and participants 66.0   37.2   2.8   6.4  
Benefits paid ( 115.4 ) ( 102.7 ) ( 15.4 ) ( 19.1 )
Settlements —   —   ( 38.7 ) —  
Other ( 8.7 ) ( 8.0 ) —   —  
Fair value of plan assets as of December 31 $ 1,427.1   $ 1,299.4   $ 172.8   $ 203.0  
Funded status as of December 31 $ ( 271.3 ) $ ( 365.6 ) $ 22.2   $ 22.1  

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Evergy
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Amounts recognized in the consolidated balance sheet (millions)
Non-current asset $ —   $ —   $ 35.0   $ 33.9  
Current pension and other post-retirement liability ( 4.4 ) ( 5.0 ) ( 1.0 ) ( 1.1 )
Noncurrent pension liability and other post-retirement liability
( 266.9 ) ( 360.6 ) ( 11.8 ) ( 10.7 )
Net amount recognized before regulatory treatment ( 271.3 ) ( 365.6 ) 22.2   22.1  
Accumulated OCI or regulatory asset/liability ( 239.7 ) ( 173.2 ) ( 31.3 ) ( 41.7 )
Net amount recognized as of December 31 $ ( 511.0 ) $ ( 538.8 ) $ ( 9.1 ) $ ( 19.6 )
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:

Actuarial gain $ ( 247.6 ) $ ( 183.0 ) $ ( 35.8 ) $ ( 46.5 )
Prior service cost 7.9   9.8   4.5   4.8  
Net amount recognized as of December 31 $ ( 239.7 ) $ ( 173.2 ) $ ( 31.3 ) $ ( 41.7 )

Evergy Kansas Central
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Change in projected benefit obligation (PBO) (millions)
PBO as of January 1 $ 851.0   $ 876.2   $ 93.3   $ 97.8  
Service cost 18.5   19.0   0.9   0.9  
Interest cost 47.7   45.6   4.9   5.1  
Contribution by participants —   —   0.3   0.7  
Plan amendments —   —   —   3.3  
Actuarial (gain) loss 6.8   ( 28.2 ) 2.4   ( 5.3 )
Benefits paid ( 67.3 ) ( 58.3 ) ( 7.6 ) ( 9.2 )
Settlements —   —   ( 21.0 ) —  
Special termination benefits 2.2   0.2   1.6   —  
Other ( 3.9 ) ( 3.5 ) —   —  
PBO as of December 31 $ 855.0   $ 851.0   $ 74.8   $ 93.3  
Change in plan assets
Fair value of plan assets as of January 1 $ 633.9   $ 620.6   $ 99.1   $ 99.1  
Actual return on plan assets 89.9   62.3   11.2   7.6  
Contributions by employer and participants 29.8   10.6   0.4   1.2  
Benefits paid ( 65.2 ) ( 56.1 ) ( 7.3 ) ( 8.8 )
Settlements —   —   ( 21.0 ) —  
Other ( 3.9 ) ( 3.5 ) —   —  
Fair value of plan assets as of December 31 $ 684.5   $ 633.9   $ 82.4   $ 99.1  
Funded status as of December 31 $ ( 170.5 ) $ ( 217.1 ) $ 7.6   $ 5.8  

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Evergy Kansas Central
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Amounts recognized in the consolidated balance sheet (millions)
Non-current asset $ —   $ —   $ 11.7   $ 9.8  
Current pension and other post-retirement liability ( 2.4 ) ( 2.4 ) ( 0.5 ) ( 0.5 )
Noncurrent pension liability and other post-retirement liability
( 168.1 ) ( 214.7 ) ( 3.6 ) ( 3.5 )
Net amount recognized before regulatory treatment ( 170.5 ) ( 217.1 ) 7.6   5.8  
Accumulated OCI or regulatory asset/liability ( 31.4 ) 10.2   ( 17.1 ) ( 20.3 )
Net amount recognized as of December 31 $ ( 201.9 ) $ ( 206.9 ) $ ( 9.5 ) $ ( 14.5 )
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:

Actuarial gain ( 40.8 ) ( 1.2 ) $ ( 20.4 ) $ ( 23.9 )
Prior service cost 9.4   11.4   3.3   3.6  
Net amount recognized as of December 31 $ ( 31.4 ) $ 10.2   $ ( 17.1 ) $ ( 20.3 )

Evergy Metro
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Change in projected benefit obligation (PBO) (millions)
PBO as of January 1 $ 796.3   $ 809.7   $ 87.6   $ 95.0  
Service cost 26.7   27.0   0.6   0.7  
Interest cost 45.6   43.0   4.6   5.0  
Contribution by participants —   —   2.3   4.9  
Plan amendments —   —   0.1   0.9  
Actuarial (gain) loss 7.4   ( 31.9 ) 4.9   ( 7.7 )
Benefits paid ( 50.4 ) ( 47.0 ) ( 8.9 ) ( 11.2 )
Settlements ( 0.7 ) —   ( 17.7 ) —  
Special termination benefits 6.1   —   2.3   —  
Other ( 4.8 ) ( 4.5 ) —   —  
PBO as of December 31 $ 826.2   $ 796.3   $ 75.8   $ 87.6  
Change in plan assets
Fair value of plan assets as of January 1 $ 665.5   $ 630.1   $ 103.9   $ 102.4  
Actual return on plan assets 95.9   59.9   9.9   6.6  
Contributions by employer and participants 36.2   26.6   2.4   5.2  
Benefits paid ( 50.2 ) ( 46.6 ) ( 8.1 ) ( 10.3 )
Settlements —   —   ( 17.7 ) —  
Other ( 4.8 ) ( 4.5 ) —   —  
Fair value of plan assets as of December 31 $ 742.6   $ 665.5   $ 90.4   $ 103.9  
Funded status as of December 31 $ ( 83.6 ) $ ( 130.8 ) $ 14.6   $ 16.3  

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Evergy Metro
Pension Benefits Post-Retirement Benefits
2025 2024 2025 2024
Amounts recognized in the consolidated balance sheet (millions)
Non-current asset $ —   $ —   $ 23.3   $ 24.1  
Current pension and other post-retirement liability ( 0.4 ) ( 1.1 ) ( 0.5 ) ( 0.5 )
Noncurrent pension liability and other post-retirement liability
( 83.2 ) ( 129.7 ) ( 8.2 ) ( 7.3 )
Net amount recognized before regulatory treatment ( 83.6 ) ( 130.8 ) 14.6   16.3  
Accumulated OCI or regulatory asset/liability ( 200.2 ) ( 174.7 ) ( 19.8 ) ( 27.3 )
Net amount recognized as of December 31 $ ( 283.8 ) $ ( 305.5 ) $ ( 5.2 ) $ ( 11.0 )
Amounts in accumulated OCI or regulatory asset/liability not yet recognized as a component of net periodic benefit cost:

Actuarial gain $ ( 198.9 ) $ ( 173.4 ) $ ( 16.7 ) $ ( 23.8 )
Prior service cost ( 1.3 ) ( 1.3 ) ( 3.1 ) ( 3.5 )
Net amount recognized as of December 31 $ ( 200.2 ) $ ( 174.7 ) $ ( 19.8 ) $ ( 27.3 )

Actuarial gains for the Evergy Companies' pension benefit plans for 2024 were primarily driven by an increase in the discount rate used to measure the benefit obligation as a result of higher market interest rates. See the weighted average assumptions used to determine the benefit obligations within this Note 9 for further information.
As of December 31, 2025 and 2024, Evergy's pension benefits include non-qualified benefit obligations of $ 35.4  million and $ 36.0 million, respectively, which are funded by trusts containing assets of $ 31.2 million and $ 31.4 million, respectively. As of December 31, 2025 and 2024, Evergy Kansas Central's pension benefits include non-qualified benefit obligations of $ 18.2 million and $ 18.4 million, respectively, which are funded by trusts containing assets of $ 23.5 million and $ 23.4 million, respectively. The assets in the aforementioned trusts are not included in the table above. See Note 14 for more information on these amounts.
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Evergy
Pension Benefits Post-Retirement Benefits
2025 2024 2023 2025 2024 2023
Components of net periodic benefit costs (millions)
Service cost $ 45.2   $ 46.0   $ 44.9   $ 1.5   $ 1.6   $ 1.8  
Interest cost 94.2   89.5   91.9   9.5   10.1   11.1  
Expected return on plan assets ( 88.0 ) ( 86.7 ) ( 87.6 ) ( 10.3 ) ( 11.5 ) ( 11.9 )
Prior service cost 1.9   1.9   1.9   0.4   0.1   0.1  
Recognized net actuarial gain ( 18.4 ) ( 17.4 ) ( 21.5 ) ( 3.9 ) ( 3.9 ) ( 4.2 )
Settlements and special termination benefits 7.6   0.2   ( 21.1 ) ( 6.4 ) —   —  
Net periodic benefit costs before regulatory adjustment and intercompany allocations
42.5   33.5   8.5   ( 9.2 ) ( 3.6 ) ( 3.1 )
Regulatory adjustment 11.8   24.1   94.0   3.3   ( 0.1 ) ( 0.1 )
Intercompany allocations n/a n/a n/a n/a n/a n/a
Net periodic benefit costs (income) 54.3   57.6   102.5   ( 5.9 ) ( 3.7 ) ( 3.2 )
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities

Current year net (gain) loss ( 83.7 ) ( 96.3 ) 7.1   ( 3.5 ) ( 15.7 ) ( 13.6 )
Amortization of gain 18.4   17.4   21.5   3.9   3.9   4.2  
Prior service cost —   —   —   0.1   4.2   —  
Amortization of prior service cost ( 1.9 ) ( 1.9 ) ( 1.9 ) ( 0.4 ) ( 0.1 ) ( 0.1 )
Net gain due to settlement 0.7   —   21.1   10.3   —   —  
Total recognized in OCI or regulatory asset/liability
( 66.5 ) ( 80.8 ) 47.8   10.4   ( 7.7 ) ( 9.5 )
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability
$ ( 12.2 ) $ ( 23.2 ) $ 150.3   $ 4.5   $ ( 11.4 ) $ ( 12.7 )

Evergy Kansas Central
Pension Benefits Post-Retirement Benefits
2025 2024 2023 2025 2024 2023
Components of net periodic benefit costs (millions)
Service cost $ 18.5   $ 19.0   $ 18.6   $ 0.9   $ 0.9   $ 0.9  
Interest cost 47.7   45.6   47.0   4.9   5.1   5.7  
Expected return on plan assets ( 42.9 ) ( 43.0 ) ( 44.1 ) ( 5.2 ) ( 5.9 ) ( 6.3 )
Prior service cost 2.0   1.9   2.0   0.3   0.1   —  
Recognized net actuarial (gain) loss ( 0.5 ) 0.9   ( 2.5 ) ( 2.0 ) ( 2.0 ) ( 2.0 )
Settlements and special termination benefits 2.2   0.2   1.1   ( 3.5 ) —   —  
Net periodic benefit costs before regulatory adjustment and intercompany allocations
27.0   24.6   22.1   ( 4.6 ) ( 1.8 ) ( 1.7 )
Regulatory adjustment ( 7.8 ) ( 6.4 ) 30.4   2.2   0.8   ( 1.7 )
Intercompany allocations ( 3.0 ) ( 1.9 ) ( 2.3 ) ( 0.1 ) ( 0.1 ) 0.3  
Net periodic benefit costs (income) 16.2   16.3   50.2   ( 2.5 ) ( 1.1 ) ( 3.1 )
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities

Current year net (gain) loss ( 40.1 ) ( 47.7 ) 11.0   ( 3.6 ) ( 7.0 ) ( 7.8 )
Amortization of gain (loss) 0.5   ( 0.9 ) 2.5   2.0   2.0   2.0  
Prior service cost —   —   —   0.1   3.4   —  
Amortization of prior service cost ( 2.0 ) ( 1.9 ) ( 2.0 ) ( 0.3 ) ( 0.1 ) —  
Net gain (loss) due to settlement —   —   ( 1.1 ) 5.0   —   —  
Total recognized in OCI or regulatory asset/liability
( 41.6 ) ( 50.5 ) 10.4   3.2   ( 1.7 ) ( 5.8 )
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability
$ ( 25.4 ) $ ( 34.2 ) $ 60.6   $ 0.7   $ ( 2.8 ) $ ( 8.9 )

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Evergy Metro
Pension Benefits Post-Retirement Benefits
2025 2024 2023 2025 2024 2023
Components of net periodic benefit costs (millions)
Service cost $ 26.7   $ 27.0   $ 26.3   $ 0.6   $ 0.7   $ 0.9  
Interest cost 45.6   43.0   44.0   4.6   5.0   5.5  
Expected return on plan assets ( 45.0 ) ( 43.7 ) ( 43.4 ) ( 5.1 ) ( 5.6 ) ( 5.7 )
Prior service cost —   —   —   ( 0.3 ) ( 0.4 ) ( 0.4 )
Recognized net actuarial gain ( 17.2 ) ( 17.5 ) ( 18.2 ) ( 1.9 ) ( 1.8 ) ( 2.1 )
Settlements and special termination benefits 5.4   —   ( 22.2 ) ( 2.9 ) —   —  
Net periodic benefit costs before regulatory adjustment and intercompany allocations
15.5   8.8   ( 13.5 ) ( 5.0 ) ( 2.1 ) ( 1.8 )
Regulatory adjustment 19.0   29.8   63.0   1.5   ( 0.6 ) 2.1  
Intercompany allocations 0.5   ( 2.2 ) ( 1.1 ) 0.6   0.6   —  
Net periodic benefit costs (income) 35.0   36.4   48.4   ( 2.9 ) ( 2.1 ) 0.3  
Other changes in plan assets and benefit obligations recognized in OCI or regulatory assets/liabilities

Current year net gain ( 43.4 ) ( 48.1 ) ( 4.2 ) —   ( 8.7 ) ( 5.8 )
Amortization of gain 17.2   17.5   18.2   1.9   1.8   2.1  
Prior service cost —   —   —   0.1   0.9   —  
Amortization of prior service cost —   —   —   0.3   0.4   0.4  
Net gain due to settlement 0.7   —   22.2   5.2   —   —  
Total recognized in OCI or regulatory asset/liability
( 25.5 ) ( 30.6 ) 36.2   7.5   ( 5.6 ) ( 3.3 )
Total recognized in net periodic benefit costs and OCI or regulatory asset/liability
$ 9.5   $ 5.8   $ 84.6   $ 4.6   $ ( 7.7 ) $ ( 3.0 )

For financial reporting purposes, the estimated prior service cost and net actuarial (gain) loss for the defined benefit plans are amortized from accumulated other comprehensive income (OCI) or a regulatory asset/liability into net periodic benefit cost. The Evergy Companies amortize prior service cost on a straight-line basis over the average future service of the active employees (plan participants) benefiting under the plan. The Evergy Companies amortize the net actuarial (gain) loss on a straight-line basis over the average future service of active plan participants benefiting under the plan without application of an amortization corridor.
Pension and other post-retirement benefit plans with the PBO, accumulated benefit obligation (ABO) or accumulated other post-retirement benefit obligation (APBO) in excess of the fair value of plan assets at year-end are detailed in the following tables.

December 31, 2025 Evergy Evergy Kansas Central Evergy Metro
(millions)
ABO for all defined benefit pension plans $ 1,541.1   $ 793.0   $ 730.9  
Pension plans with the PBO in excess of plan assets
Projected benefit obligation $ 1,698.4   $ 855.0   $ 826.2  
Fair value of plan assets 1,427.1   684.5   742.6  
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation $ 1,541.1   $ 793.0   $ 730.9  
Fair value of plan assets 1,427.1   684.5   742.6  
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation $ 68.0   $ 3.9   $ 64.1  
Fair value of plan assets 55.5   —   55.5  

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December 31, 2024 Evergy Evergy Kansas Central Evergy Metro
(millions)
ABO for all defined benefit pension plans $ 1,503.6   $ 785.9   $ 700.2  
Pension plans with the PBO in excess of plan assets
Projected benefit obligation $ 1,665.0   $ 851.0   $ 796.3  
Fair value of plan assets 1,299.4   633.9   665.5  
Pension plans with the ABO in excess of plan assets
Accumulated benefit obligation $ 1,503.6   $ 785.9   $ 700.2  
Fair value of plan assets 1,299.4   633.9   665.5  
Other post-retirement benefit plans with the APBO in excess of plan assets
Accumulated other post-retirement benefit obligation $ 78.8   $ 3.7   $ 75.1  
Fair value of plan assets 67.3   —   67.3  

The expected long-term rate of return on plan assets represents the Evergy Companies' estimate of the long-term return on plan assets and is based on historical and projected rates of return for current and planned asset classes in the plans' investment portfolios. Assumed projected rates of return for each asset class were selected after analyzing historical experience and future expectations of the returns of various asset classes. Based on the target asset allocation for each asset class, the overall expected rate of return for the portfolios was developed and adjusted for the effect of projected benefits paid from plan assets and future plan contributions.
The following tables provide the weighted-average assumptions used to determine benefit obligations and net costs for the Evergy Companies' pension and post-retirement benefit plans.

Weighted-average assumptions used to determine the benefit obligation at December 31, 2025 Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 5.80   % 5.78   % 5.82   % 5.72   % 5.67   % 5.76   %
Rate of compensation increase 3.71   % 3.77   % 3.70   % 3.75   % n/a 3.75   %
Interest crediting rate for cash balance plans 4.56   % 4.40   % 4.65   % n/a n/a n/a

Weighted-average assumptions used to determine the benefit obligation at December 31, 2024 Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 5.77   % 5.76   % 5.79   % 5.79   % 5.79   % 5.78   %
Rate of compensation increase 3.72   % 3.77   % 3.70   % 3.75   % n/a 3.75   %
Interest crediting rate for cash balance plans 4.40   % 4.20   % 4.63   % n/a n/a n/a

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Weighted-average assumptions used to determine net costs for the year ended December 31, 2025 Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 5.77   % 5.76   % 5.79   % 5.79   % 5.79   % 5.78   %
Expected long-term return on plan assets 6.84   % 6.90   % 6.78   % 5.48   % 5.75   % 5.22   %
Rate of compensation increase 3.72   % 3.77   % 3.71   % 3.75   % n/a 3.75   %
Interest crediting rate for cash balance plans 4.40   % 4.20   % 4.63   % n/a n/a n/a

Weighted-average assumptions used to determine net costs for the year ended December 31, 2024 Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
Discount rate 5.35   % 5.34   % 5.35   % 5.43   % 5.45   % 5.41   %
Expected long-term return on plan assets 6.84   % 6.90   % 6.79   % 5.48   % 5.75   % 5.22   %
Rate of compensation increase 3.72   % 3.77   % 3.71   % 3.75   % n/a 3.75   %
Interest crediting rate for cash balance plans 4.13   % 4.20   % 4.47   % n/a n/a n/a

Evergy expects to contribute $ 110.7 million to the pension plans in 2026 to meet Employee Retirement Income Security Act of 1974, as amended (ERISA) funding requirements and regulatory orders, of which $ 76.4 million is expected to be paid by Evergy Kansas Central and $ 34.3 million is expected to be paid by Evergy Metro. The Evergy Companies' funding policy is to contribute amounts sufficient to meet the ERISA funding requirements and MPSC and KCC rate orders plus additional amounts as considered appropriate; therefore, actual contributions may differ from expected contributions. Also in 2026, Evergy expects to contribute $ 0.6 million to the post-retirement benefit plans, of which $ 0.3 million is expected to be paid by Evergy Kansas Central and $ 0.3 million is expected to be paid by Evergy Metro.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid through 2035.

Pension Benefits Post-Retirement Benefits
Evergy Evergy Kansas Central Evergy Metro Evergy Evergy Kansas Central Evergy Metro
(millions)
2026 $ 139.2   $ 72.9   $ 64.7   $ 14.7   $ 8.3   $ 6.4  
2027 142.3   73.2   67.5   14.3   8.1   6.2  
2028 143.4   72.7   69.1   13.8   7.8   6.0  
2029 144.1   72.5   70.0   11.8   6.4   5.4  
2030 145.8   72.1   72.2   10.9   5.9   5.0  
2031-2035 738.0   351.7   379.3   50.5   26.6   23.9  

As of December 31, 2025, Evergy Kansas Central and Evergy Metro maintained a master trust for their non-union and Evergy Kansas Central's union pension benefits and a separate trust for Evergy Metro's union pension benefits. Evergy Kansas Central and Evergy Metro maintained separate trusts for their post-retirement benefits as of December 31, 2025. These plans are managed in accordance with prudent investor guidelines contained in the ERISA requirements.
The primary objective of Evergy Kansas Central's and Evergy Metro's pension plans is to provide a source of retirement income for its participants and beneficiaries, and the primary financial objectives of the plans are to minimize funding deficiencies and maintain the plans' ability to pay all benefit and expense obligations when due.
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The primary objective of Evergy Kansas Central's and Evergy Metro's post-retirement benefit plans is to preserve capital, maintain sufficient liquidity and earn a consistent rate of return.
The investment strategies of both the Evergy Kansas Central and Evergy Metro pension and post-retirement plans support the above objectives of the plans. The portfolios are invested, and periodically rebalanced, to achieve the targeted allocations detailed below. The following table provides the target asset allocations by asset class for the Evergy Kansas Central and Evergy Metro pension and other post-retirement plan assets.

Pension Benefits Post-Retirement Benefits
Evergy Kansas Central Evergy Metro Evergy Kansas Central Evergy Metro
Domestic equities 30 % 28 % 25 % 21 %
International equities 16 % 18 % 14 % 9 %
Bonds 39 % 37 % 61 % 62 %
Mortgage & asset backed securities — % — % — % 7 %
Real estate investments 4 % 6 % — % — %
Other investments 11 % 11 % — % 1 %

Fair Value Measurements
Evergy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 14. The following are descriptions of the valuation methods of the primary fair value measurements disclosed below.
Domestic equities - consist of individually held domestic equity securities and domestic equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1. Funds that are valued by fund administrators using the net asset value (NAV) per fund share, derived from the quoted prices in active markets of the underlying securities are not classified within the fair value hierarchy.
International equities - consist of individually held international equity securities and international equity mutual funds. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1.
Bond funds - consist of funds maintained by investment companies that invest in various types of fixed income securities consistent with the funds' stated objectives. Securities and funds, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as Level 1.
Corporate bonds - consists of individually held, primarily domestic, corporate bonds that are traded in less than active markets or priced with models using highly observable inputs that are categorized as Level 2.
U.S. Treasury and agency bonds - consists of individually held U.S. Treasury securities and U.S. agency bonds. U.S. Treasury securities, which are publicly quoted, are valued based on quoted prices in active markets and are categorized as a Level 1. U.S. agency bonds, which are publicly quoted, are traded in less than active markets or priced with models using highly observable inputs and are categorized as Level 2.
Mortgage and asset backed securities - consists of individually held securities that are traded in less than active markets or valued with models using highly observable inputs that are categorized as Level 2.
Real estate investments - consists of institutional trust funds valued at NAV per fund share and are not categorized in the fair value hierarchy.
Combination debt/equity/other fund - consists of a fund that invests in various types of debt, equity and other asset classes consistent with the fund's stated objectives. The fund, which is publicly quoted, is valued based on quoted prices in active markets and is categorized as Level 1.
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Alternative investments - consists of investments in institutional trust and hedge funds that are valued by fund administrators using the NAV per fund share, derived from the underlying investments of the fund, and are not classified within the fair value hierarchy.
Short-term investments - consists of fund investments in high-quality, short-term, U.S. dollar-denominated instruments with an average maturity of 60 days that are valued at NAV per fund share and are not categorized in the fair value hierarchy.
Cash and cash equivalents - consists of investments with original maturities of three months or less when purchased that are traded in active markets and are categorized as Level 1.
The fair values of the Evergy Companies' pension plan assets as of December 31, 2025 and 2024, by asset category are in the following tables.

    Fair Value Measurements Using
 
 
Description December 31
2025 Level 1 Level 2 Level 3 Assets measured at NAV
Evergy Kansas Central Pension Plans (millions)
Domestic equities $ 175.0   $ 157.4   $ —   $ —   $ 17.6  
International equities 102.1   102.1   —   —   —  
Bond funds 249.9   249.9   —   —   —  

Real estate investments 23.1   —   —   —   23.1  
Combination debt/equity/other fund 31.7   31.7   —   —   —  
Alternative investment funds 90.8   —   —   —   90.8  
Short-term investments 11.9   —   —   —   11.9  

Total $ 684.5   $ 541.1   $ —   $ —   $ 143.4  

Evergy Metro Pension Plans        
Domestic equities $ 184.1   $ 170.9   $ —   $ —   $ 13.2  
International equities 133.4   133.4   —   —   —  
Bond funds 221.5   221.5   —   —   —  
Corporate bonds 13.6   —   13.6   —   —  
U.S. Treasury and agency bonds 10.5   9.7   0.8   —   —  
Mortgage and asset backed securities 0.6   —   0.6   —   —  
Real estate investments 42.7   —   —   —   42.7  
Combination debt/equity/other fund 34.4   34.4   —   —   —  
Alternative investment funds 83.6   —   —   —   83.6  
Cash and cash equivalents 6.2   6.2   —   —   —  
Short-term investments 8.9   —   —   —   8.9  
Other 3.1   —   3.1   —   —  
Total $ 742.6   $ 576.1   $ 18.1   $ —   $ 148.4  

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    Fair Value Measurements Using
 
 
Description December 31
2024 Level 1 Level 2 Level 3 Assets measured at NAV
Evergy Kansas Central Pension Plans (millions)
Domestic equities $ 146.4   $ 128.5   $ —   $ —   $ 17.9  
International equities 114.6   114.6   —   —   —  
Bond funds 224.7   224.7   —   —   —  
Real estate investments 22.3   —   —   —   22.3  
Combination debt/equity/other fund 32.5   32.5   —   —   —  
Alternative investment funds 88.3   —   —   —   88.3  
Short-term investments 5.1   —   —   —   5.1  

Total $ 633.9   $ 500.3   $ —   $ —   $ 133.6  

Evergy Metro Pension Plans        
Domestic equities $ 150.4   $ 137.2   $ —   $ —   $ 13.2  
International equities 128.7   128.7   —   —   —  
Bond funds 181.7   181.7   —   —   —  
Corporate bonds 19.3   —   19.3   —   —  
U.S. Treasury and agency bonds 13.1   7.1   6.0   —   —  
Mortgage and asset backed securities 4.4   —   4.4   —   —  
Real estate investments 42.9   —   —   —   42.9  
Combination debt/equity/other fund 33.2   33.2   —   —   —  
Alternative investment funds 79.1   —   —   —   79.1  
Cash and cash equivalents 6.1   6.1   —   —   —  
Short-term investments 3.8   —   —   —   3.8  
Other 2.8   —   2.8   —   —  
Total $ 665.5   $ 494.0   $ 32.5   $ —   $ 139.0  

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The fair values of the Evergy Companies' post-retirement plan assets as of December 31, 2025 and 2024, by asset category are in the following tables.

    Fair Value Measurements Using
 
 
Description December 31
2025 Level 1 Level 2 Level 3 Assets measured at NAV
Evergy Kansas Central Post-Retirement Benefit Plans (millions)
Domestic equities $ 20.6   $ 20.6   $ —   $ —   $ —  
International equities 11.8   11.8   —   —   —  
Bond funds 44.9   44.9   —   —   —  

Combination debt/equity/other fund 3.9   3.9   —   —   —  
Short-term investments 1.2   —   —   —   1.2  

Total $ 82.4   $ 81.2   $ —   $ —   $ 1.2  

Evergy Metro Post-Retirement Benefit Plans  
Domestic equities $ 19.4   $ 19.4   $ —   $ —   $ —  
International equities 9.0   9.0   —   —   —  
Bond funds 30.2   30.2   —   —   —  
Corporate bonds 11.8   —   11.8   —   —  
U.S. Treasury and agency bonds 15.0   7.9   7.1   —   —  
Mortgage and asset backed securities 0.2   —   0.2   —   —  

Combination debt/equity/other fund 2.6   2.6   —   —   —  
Cash and cash equivalents 1.1   1.1   —   —   —  
Short-term investments 0.8   —   —   —   0.8  
Other 0.3   —   0.3   —   —  
Total $ 90.4   $ 70.2   $ 19.4   $ —   $ 0.8  

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    Fair Value Measurements Using
 
 
Description December 31
2024 Level 1 Level 2 Level 3 Assets measured at NAV
Evergy Kansas Central Post-Retirement Benefit Plans (millions)
Domestic equities $ 26.1   $ 26.1   $ —   $ —   $ —  
International equities 17.3   17.3   —   —   —  
Bond funds 49.9   49.9   —   —   —  
Combination debt/equity/other fund 4.8   4.8   —   —   —  
Short-term investments 1.0   —   —   —   1.0  
Total $ 99.1   $ 98.1   $ —   $ —   $ 1.0  

Evergy Metro Post-Retirement Benefit Plans  
Domestic equities $ 20.5   $ 20.5   $ —   $ —   $ —  
International equities 11.3   11.3   —   —   —  
Bond funds 37.6   37.6   —   —   —  
Corporate bonds 14.5   —   14.5   —   —  
U.S. Treasury and agency bonds 14.0   6.7   7.3   —   —  
Mortgage and asset backed securities 0.6   —   0.6   —   —  
Combination debt/equity/other fund 3.3   3.3   —   —   —  
Cash and cash equivalents 1.7   1.7   —   —   —  
Short-term investments 0.2   —   —   —   0.2  
Other 0.2   —   0.2   —   —  
Total $ 103.9   $ 81.1   $ 22.6   $ —   $ 0.2  

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The cost trend assumptions are detailed in the following tables.

Assumed annual health care cost growth rates as of December 31, 2025 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 7.0   % n/a 7.0   %
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5   % n/a 4.5   %
Year that rate reaches ultimate trend 2033 n/a 2033

Assumed annual health care cost growth rates as of December 31, 2024 Evergy Evergy Kansas Central Evergy Metro
Health care cost trend rate assumed for next year 7.0   % n/a 7.0   %
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.5   % n/a 4.5   %
Year that rate reaches ultimate trend 2032 n/a 2032

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Employee Savings Plans
Evergy has defined contribution savings plans (401(k)) that cover substantially all employees. Evergy matches employee contributions, subject to limits. The annual costs of the plans are detailed in the following table.

2025 2024 2023
(millions)
Evergy $ 29.6   $ 25.8   $ 24.1  
Evergy Kansas Central 14.5   12.2   11.3  
Evergy Metro 15.1   13.6   12.8  

10. EQUITY COMPENSATION
Evergy's Long-Term Incentive Plan is an equity compensation plan approved by Evergy shareholders. The Long-Term Incentive Plan permits the grant of restricted stock, restricted stock units, bonus shares, stock options, stock appreciation rights, limited stock appreciation rights, director shares, director deferred share units and performance shares to directors, officers and other employees of Evergy. Common stock shares delivered by Evergy under the Long-Term Incentive Plan may be authorized but unissued, held in the treasury or purchased on the open market (including private purchases) in accordance with applicable securities laws. Evergy has a policy of delivering newly issued shares and does not expect to repurchase common shares during 2026 to satisfy equity compensation payments and director deferred share unit conversion. Evergy recognizes forfeitures as they occur.
The following table summarizes the Evergy Companies' equity compensation expense and the associated income tax benefit.

2025 2024 2023
Evergy (millions)
Equity compensation expense $ 20.7   $ 15.2   $ 17.7  
Income tax benefit 1.9   1.9   1.6  
Evergy Kansas Central
Equity compensation expense 8.8   6.7   6.5  
Income tax benefit 1.8   1.5   1.4  
Evergy Metro
Equity compensation expense 6.0   4.5   5.7  
Income tax expense ( 0.5 ) —   ( 0.6 )

Restricted Share Units
Evergy utilizes RSUs for new grants of stock-based compensation awards. RSU awards are grants that entitle the holder to receive shares of common stock as the awards vest. These RSU awards are defined as nonvested shares and do not include restrictions once the awards have vested. These RSUs either take the form of RSUs with performance measures that vest upon the achievement of specific performance goals or RSUs with only service requirements that vest solely upon the passage of time.
RSUs with Performance Measures
The payment of RSUs with performance measures is contingent upon achievement of specific performance goals over a stated period of time as approved by the Compensation and Leadership Development Committee of Evergy's Board. The numbers of RSUs with performances measures ultimately paid can vary from the numbers of RSUs with performance measures initially granted depending on Evergy's performance over the stated performance periods. Compensation expense for RSUs with performance measures is calculated by recognizing the portion of the fair value for each reporting period for which the requisite service has been rendered. Dividends are accrued over the vesting period and paid in cash based on the number of RSUs with performance measures ultimately paid.
The fair value of RSUs with performance measures is estimated using the market value of Evergy's stock at the valuation date and a Monte Carlo simulation technique that incorporates assumptions for inputs of expected
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volatilities, dividend yield and risk-free rates. Expected volatility is based on daily stock price change during a historical period commensurate with the remaining term of the performance period of the grant. The risk-free rate is based upon the rate at the time of the evaluation for zero-coupon government bonds with a maturity consistent with the remaining performance period of the grant. The dividend yield is based on the most recent dividends paid and the actual closing stock price on the valuation date. For shares granted in 2025, inputs for expected volatility, dividend yield and the risk-free rate were 21 %, 3.89 % and 3.94 % respectively.
RSU activity for awards with performance measures for 2025 is summarized in the following table.

Nonvested
Restricted Share Units Grant Date
Fair Value*
Beginning balance as of January 1, 2025 630,687   $ 55.45  
Granted 198,441   76.68  
Vested ( 33,751 ) 60.72  
Adjusted ( 151,572 ) 57.34  
Forfeited ( 15,984 ) 61.70  
Ending balance as of December 31, 2025 627,821   61.45  

* weighted-average
As of December 31, 2025, the remaining weighted-average contractual term related to RSU awards with performance measures was 1.2 years.  The weighted-average grant-date fair value of RSUs granted with performance measures was $ 76.68 , $ 49.94 and $ 59.77 in 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $ 15.5 million of unrecognized compensation expense related to unvested RSUs with performance measures. The total fair value of RSUs with performance measures that vested was $ 2.0 million, $ 10.2 million and $ 7.9 million in 2025, 2024, and 2023, respectively.
RSUs with Only Service Requirements
Evergy measures the fair value of RSUs with only service requirements based on the fair market value of the underlying common stock as of the grant date. RSU awards with only service conditions recognize compensation expense by multiplying shares by the grant-date fair value related to the RSU and recognizing it on a straight-line basis over the requisite service period for the entire award. Dividends are accrued over the vesting period and are invested in additional RSU's subject to the same service conditions.
RSU activity for awards with only service requirements for 2025 is summarized in the following table.

Nonvested
Restricted Share Units Grant Date
Fair Value*
Beginning balance as of January 1, 2025 306,655   $ 54.65  
Granted 155,476   69.89  
Vested ( 90,856 ) 59.80  

Forfeited ( 11,259 ) 58.52  
Ending balance as of December 31, 2025 360,016   60.06  

* weighted-average
As of December 31, 2025, the remaining weighted-average contractual term related to RSU awards with only service requirements was 1.4 years.  The weighted-average grant-date fair value of RSUs granted with only service requirements was $ 69.89 , $ 51.22 and $ 57.47 in 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $ 10.7 million of unrecognized compensation expense related to unvested RSUs. The total fair value of RSUs with only service requirements that vested was $ 5.4 million, $ 6.8 million and $ 3.3 million in 2025, 2024 and 2023, respectively.
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11. SHORT-TERM BORROWINGS AND SHORT-TERM BANK LINES OF CREDIT
The Evergy Companies' $ 2.5 billion master credit facility expires in 2028. Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West have borrowing capacity under the master credit facility with specific sublimits for each borrower. These sublimits can be unilaterally adjusted by Evergy for each borrower provided the sublimits remain within minimum and maximum sublimits as specified in the facility. The applicable interest rates and commitment fees of the facility are also subject to changes in ratings by the credit rating agencies.
A default by any borrower under the facility or one of its significant subsidiaries on other indebtedness totaling more than $ 100.0  million constitutes a default by that borrower under the facility. Under the terms of this facility, each of Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West is required to maintain a total indebtedness to total capitalization ratio, as defined in the facility, of not greater than 0.65 to 1.00. As of December 31, 2025, Evergy, Evergy Kansas Central, Evergy Metro and Evergy Missouri West were in compliance with this covenant.
The following table summarizes the committed credit facilities (excluding receivable sale facilities discussed in Note 3) available to the Evergy Companies as of December 31, 2025 and 2024.

Amounts Drawn
Master Credit Facility Commercial Paper Letters of Credit Cash Borrowings Available Borrowings Capacity Weighted Average Interest Rate on Short-Term Borrowings
December 31, 2025 (millions)
Evergy, Inc. $ 700.0   $ 500.2   $ 0.7   $ —   $ 199.1   3.91 %
Evergy Kansas Central 800.0   321.9   2.0   —   476.1   3.96 %
Evergy Metro 500.0   245.3   1.1   —   253.6   3.85 %
Evergy Missouri West 500.0   326.6   —   —   173.4   4.06 %
Evergy $ 2,500.0   $ 1,394.0   $ 3.8   $ —   $ 1,102.2  

December 31, 2024
Evergy, Inc. $ 300.0   $ 75.4   $ 0.7   $ —   $ 223.9   4.70 %
Evergy Kansas Central 1,100.0   797.3   1.0   —   301.7   4.74 %
Evergy Metro 600.0   158.7   1.0   —   440.3   4.64 %
Evergy Missouri West 500.0   176.2   —   —   323.8   4.71 %
Evergy $ 2,500.0   $ 1,207.6   $ 2.7   $ —   $ 1,289.7  

In January 2026, Evergy, Inc. entered into a $ 55.0  million unsecured Term Loan Credit Agreement with an expiration date in January 2027. In February 2026, Evergy, Inc. entered into a $ 500.0  million unsecured Term Loan Credit Agreement with an expiration date in February 2027. Evergy's borrowings under the $ 500.0  million unsecured Term Loan Credit Agreement were used for, among other things, the repayment in full of all borrowings under the $ 55.0  million Term Loan Credit Agreement, the partial repurchase of Evergy's convertible notes as further described in Note 12 and general corporate purposes.
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12. LONG-TERM DEBT
The Evergy Companies' long-term debt is detailed in the following tables.

December 31, 2025 Issuing Entity Year Due Evergy Evergy Kansas Central Evergy Metro
Mortgage Bonds   (millions)
2.55 % Series
Evergy Kansas Central, Inc. 2026 350.0   350.0   —  
3.10 % Series
Evergy Kansas Central, Inc. 2027 300.0   300.0   —  
5.90 % Series
Evergy Kansas Central, Inc. 2033 300.0   300.0   —  
5.25 % Series
Evergy Kansas Central Inc. 2035 600.0   600.0   —  
4.125 % Series
Evergy Kansas Central, Inc. 2042 550.0   550.0   —  
4.10 % Series
Evergy Kansas Central, Inc. 2043 430.0   430.0   —  
4.625 % Series
Evergy Kansas Central, Inc. 2043 250.0   250.0   —  
4.25 % Series
Evergy Kansas Central, Inc. 2045 300.0   300.0   —  
3.25 % Series
Evergy Kansas Central, Inc. 2049 300.0   300.0   —  
3.45 % Series
Evergy Kansas Central, Inc. 2050 500.0   500.0   —  
5.70 % Series
Evergy Kansas Central, Inc. 2053 400.0   400.0   —  
6.53 % Series
Evergy Kansas South, Inc. 2037 175.0   175.0   —  
6.64 % Series
Evergy Kansas South, Inc. 2038 100.0   100.0   —  
4.30 % Series
Evergy Kansas South, Inc. 2044 250.0   250.0   —  
2.25 % Series
Evergy Metro, Inc. 2030 400.0   —   400.0  
4.95 % Series
Evergy Metro, Inc. 2033 300.0   —   300.0  
5.40 % Series
Evergy Metro, Inc. 2034 300.0   —   300.0  
5.125 % Series
Evergy Metro, Inc. 2035 400.0   —   400.0  
4.125 % Series
Evergy Metro, Inc. 2049 400.0   —   400.0  
5.15 % Series
Evergy Missouri West, Inc. 2027 300.0   —   —  
3.75 % Series
Evergy Missouri West, Inc. 2032 250.0   —   —  
5.65 % Series
Evergy Missouri West, Inc. 2034 300.0   —   —  
5.25 % Series
Evergy Missouri West, Inc. 2035 300.0   —   —  
Pollution Control Bonds
3.50 % Series
Evergy Kansas Central, Inc. 2032 45.0   45.0   —  
3.50 % Series
Evergy Kansas Central, Inc. 2032 30.5   30.5   —  
2.98 % Series (a)
Evergy Kansas South, Inc. 2027 21.9   21.9   —  
3.607 % Series
Evergy Kansas South, Inc. 2031 50.0   50.0   —  
2.98 % Series (a)
Evergy Kansas South, Inc. 2032 14.5   14.5   —  
2.98 % Series (a)
Evergy Kansas South, Inc. 2032 10.0   10.0   —  
3.037 % Series 2007A and 2007B (a)
Evergy Metro, Inc. 2035 146.5   —   146.5  
4.05 % EIRR Bonds
Evergy Metro, Inc. 2038 23.4   —   23.4  
4.30 % EIRR Bonds
Evergy Metro, Inc. 2045 79.5   —   79.5  
Notes and Senior Notes  
4.70 % Series
Evergy Kansas Central, Inc. 2028 300.0   300.0   —  
6.05 % Series ( 5.78 % rate) (b)(c)
Evergy Metro, Inc. 2035 250.0   —   250.0  
5.30 % Series (b)
Evergy Metro, Inc. 2041 400.0   —   400.0  
4.20 % Series (b)
Evergy Metro, Inc. 2047 300.0   —   300.0  
4.20 % Series (b)
Evergy Metro, Inc. 2048 300.0   —   300.0  
2.86 % Series A (d)
Evergy Missouri West, Inc. 2031 350.0   —   —  
3.01 % Series B (d)
Evergy Missouri West, Inc. 2033 75.0   —   —  
4.06 % Series B (d)
Evergy Missouri West, Inc. 2033 60.0   —   —  
3.21 % Series C (d)
Evergy Missouri West, Inc. 2036 75.0   —   —  
4.74 % Series C (d)
Evergy Missouri West, Inc. 2043 150.0   —   —  
2.90 % Series ( 3.77 % rate) (c)
Evergy, Inc. 2029 800.0   —   —  
Convertible Notes    
4.50 % Convertible Notes
Evergy, Inc. 2027 1,400.0   —   —  
Securitized Bonds
5.10 % Securitized Bonds
Evergy Missouri West Storm Funding I, LLC 2026 - 2040 303.4   —   —  
Junior Subordinated Notes
6.65 % Junior Subordinated Notes
Evergy, Inc. 2055 500.0   —   —  
Fair value adjustment (e)
76.1   —   —  
Current maturities (f)
( 367.0 ) ( 350.0 ) —  
Unamortized debt discount and debt issuance costs ( 109.6 ) ( 43.8 ) ( 28.0 )
Total excluding current maturities (g)
$ 13,039.2   $ 4,883.1   $ 3,271.4  

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December 31, 2024 Issuing Entity Year Due Evergy Evergy Kansas Central Evergy Metro
Mortgage Bonds   (millions)
3.25 % Series
Evergy Kansas Central, Inc. 2025 $ 250.0   $ 250.0   $ —  
2.55 % Series
Evergy Kansas Central, Inc. 2026 350.0   350.0   —  
3.10 % Series
Evergy Kansas Central, Inc. 2027 300.0   300.0   —  
5.90 % Series
Evergy Kansas Central, Inc. 2033 300.0   300.0   —  
4.125 % Series
Evergy Kansas Central, Inc. 2042 550.0   550.0   —  
4.10 % Series
Evergy Kansas Central, Inc. 2043 430.0   430.0   —  
4.625 % Series
Evergy Kansas Central, Inc. 2043 250.0   250.0   —  
4.25 % Series
Evergy Kansas Central, Inc. 2045 300.0   300.0   —  
3.25 % Series
Evergy Kansas Central, Inc. 2049 300.0   300.0   —  
3.45 % Series
Evergy Kansas Central, Inc. 2050 500.0   500.0   —  
5.70 % Series
Evergy Kansas Central, Inc. 2053 400.0   400.0   —  
6.53 % Series
Evergy Kansas South, Inc. 2037 175.0   175.0   —  
6.64 % Series
Evergy Kansas South, Inc. 2038 100.0   100.0   —  
4.30 % Series
Evergy Kansas South, Inc. 2044 250.0   250.0   —  
2.25 % Series
Evergy Metro, Inc. 2030 400.0   —   400.0  
4.95 % Series
Evergy Metro, Inc. 2033 300.0   —   300.0  
5.40 % Series
Evergy Metro, Inc. 2034 300.0   —   300.0  
4.125 % Series
Evergy Metro, Inc. 2049 400.0   —   400.0  
5.15 % Series
Evergy Missouri West, Inc. 2027 300.0   —   —  
3.75 % Series
Evergy Missouri West, Inc. 2032 250.0   —   —  
5.65 % Series
Evergy Missouri West, Inc. 2034 300.0   —   —  
Pollution Control Bonds
3.19 % Series (a)
Evergy Kansas Central, Inc. 2032 45.0   45.0   —  
3.19 % Series (a)
Evergy Kansas Central, Inc. 2032 30.5   30.5   —  
3.19 % Series (a)
Evergy Kansas South, Inc. 2027 21.9   21.9   —  
2.50 % Series
Evergy Kansas South, Inc. 2031 50.0   50.0   —  
3.19 % Series (a)
Evergy Kansas South, Inc. 2032 14.5   14.5   —  
3.19 % Series (a)
Evergy Kansas South, Inc. 2032 10.0   10.0   —  
3.45 % Series 2007A and 2007B (a)
Evergy Metro, Inc. 2035 146.5   —   146.5  
3.50 % EIRR Bonds
Evergy Metro, Inc. 2038 23.4   —   23.4  
4.30 % EIRR Bonds
Evergy Metro, Inc. 2045 79.5   —   79.5  
Senior Notes  
3.65 % Series (b)
Evergy Metro, Inc. 2025 350.0   —   350.0  
6.05 % Series ( 5.78 % rate) (b)(c)
Evergy Metro, Inc. 2035 250.0   —   250.0  
5.30 % Series (b)
Evergy Metro, Inc. 2041 400.0   —   400.0  
4.20 % Series (b)
Evergy Metro, Inc. 2047 300.0   —   300.0  
4.20 % Series (b)
Evergy Metro, Inc. 2048 300.0   —   300.0  
3.49 % Series A (d)
Evergy Missouri West, Inc. 2025 36.0   —   —  
4.06 % Series B (d)
Evergy Missouri West, Inc. 2033 60.0   —   —  
4.74 % Series C (d)
Evergy Missouri West, Inc. 2043 150.0   —   —  
2.86 % Series A (d)
Evergy Missouri West, Inc. 2031 350.0   —   —  
3.01 % Series B (d)
Evergy Missouri West, Inc. 2033 75.0   —   —  
3.21 % Series C (d)
Evergy Missouri West, Inc. 2036 75.0   —   —  
2.90 % Series ( 3.77 % rate) (c)
Evergy, Inc. 2029 800.0   —   —  
Convertible Notes
4.50 % Convertible Notes
Evergy, Inc. 2027 1,400.0   —   —  
Securitized Bonds
5.10 % Securitized Bonds
Evergy Missouri West Storm Funding I, LLC 2025 - 2040 319.6   —   —  
Junior Subordinated Notes
6.65 % Junior Subordinated Notes
Evergy, Inc. 2055 500.0   —   —  
Fair value adjustment (e)
81.7   —   —  
Current maturities (f)
( 651.7 ) ( 250.0 ) ( 350.0 )
Unamortized debt discount and debt issuance costs ( 112.7 ) ( 43.4 ) ( 26.0 )
Total excluding current maturities (g)
$ 11,809.2   $ 4,333.5   $ 2,873.4  

(a) Variable rate. The bondholders of these tax-exempt bonds are permitted to tender the tax-exempt bonds to the issuer for purchase and, if tendered, the issuer is obligated to purchase any such bonds that cannot be remarketed to other investors. These tax-exempt bonds are classified as long-term debt due to the issuer's intent and ability to utilize such borrowings as long-term financing.
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(b) Effectively secured pursuant to the General Mortgage Indenture and Deed of Trust dated as of December 1, 1986, as amended and supplemented (Evergy Metro Mortgage Indenture) through the issuance of collateral mortgage bonds to the trustee in 2019.
(c) Rate after amortizing gains/losses recognized in OCI on settlements of interest rate hedging instruments.
(d) Unconditionally guaranteed by Evergy, Inc.
(e) Represents the fair value adjustments recorded at Evergy consolidated related to the long-term debt of Evergy Metro and Evergy Missouri West in connection with purchase accounting for the merger that created Evergy. This amount is not part of future principal payments and will amortize over the remaining life of the associated debt instruments.
(f) Evergy's current maturities total as of December 31, 2025, includes no fair value adjustments recorded in connection with purchase accounting for the merger that created Evergy. Evergy's current maturities total as of December 31, 2024, included $( 0.5 ) million of fair value adjustments recorded in connection with purchase accounting for the merger.
(g) As of December 31, 2025 and 2024, does not include $ 50.0 million and $ 21.9 million of secured Series 2005 Environmental Improvement Revenue Refunding (EIRR) bonds because the bonds were repurchased in September 2015 and are held by Evergy Metro.
Mortgage Bonds
The Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West mortgages each contain provisions restricting the amount of first mortgage bonds (FMBs) or mortgage bonds, as applicable, that can be issued by each entity. Evergy Kansas Central, Evergy Kansas South, Evergy Metro and Evergy Missouri West must comply with these restrictions prior to the issuance of additional FMBs, mortgage bonds or other secured indebtedness.
Under the Mortgage and Deed of Trust, dated July 1, 1939, as amended and supplemented (Evergy Kansas Central Mortgage Indenture), additional Evergy Kansas Central mortgage bonds may be issued on the basis of 70 % of property additions or retired bonds. The amount of Evergy Kansas Central FMBs authorized by Evergy Kansas Central's Mortgage Indenture is subject to certain limitations as described below. The amount of Evergy Kansas South FMBs authorized by the Evergy Kansas South Mortgage and Deed of Trust, dated April 1, 1940, as amended and supplemented (Evergy Kansas South Mortgage Indenture), is limited to a maximum of $ 3.5 billion, unless amended further. FMBs are secured by utility assets. Amounts of additional FMBs that may be issued are subject to property, earnings and certain restrictive provisions, except in connection with certain refundings, of each mortgage. As of December 31, 2025, approximately $ 2.3 billion and $ 2.9 billion principal amounts of additional Evergy Kansas Central FMBs or Evergy Kansas South FMBs, respectively, could be issued under the most restrictive provisions of their mortgages.
Evergy Metro has issued mortgage bonds under the General Mortgage Indenture and Deed of Trust, dated as of December 1, 1986, as amended and supplemented (Evergy Metro Mortgage Indenture), which creates a mortgage lien on substantially all of Evergy Metro's utility plant. Additional Evergy Metro bonds may be issued on the basis of 75 % of property additions or retired bonds. As of December 31, 2025, approximately $ 5.6 billion principal amount of additional Evergy Metro mortgage bonds could be issued under the most restrictive provisions in the mortgage.
Evergy Missouri West has issued mortgage bonds under the First Mortgage Indenture and Deed of Trust, dated as of March 1, 2022, as supplemented (Evergy Missouri West Mortgage Indenture), which creates a first mortgage lien on substantially all of Evergy Missouri West's present properties and certain after-acquired properties, subject to certain exceptions. Additional Evergy Missouri West mortgage bonds may be issued on the basis of 75 % of property additions or retired bonds. As of December 31, 2025, approximately $ 2.1 billion principal amount of additional Evergy Missouri West mortgage bonds could be issued under the most restrictive provisions in the mortgage.
In March 2025, Evergy Kansas Central issued, at a discount, $ 300.0  million of 5.25 % FMBs, maturing in 2035. Proceeds were used to repay a portion of commercial paper and for general corporate purposes.
In August 2025, Evergy Metro issued, at a discount, $ 400.0  million of 5.125 % Mortgage Bonds, maturing in 2035. Proceeds were used to repay its 3.65 % Senior Notes at maturity and for general corporate purposes.
In November 2025, Evergy Missouri West issued, at a discount, $ 300.0  million of 5.25 % FMBs, maturing in 2035. Proceeds were used to repay a portion of commercial paper borrowings outstanding.
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In December 2025, Evergy Kansas Central issued, at a premium, $ 300.0  million of 5.25 % FMBs, maturing in 2035. Proceeds were primarily used to repay its $ 250.0  million of 3.25 % FMBs at maturity and for general corporate purposes.
Notes and Senior Notes
Under the terms of the note purchase agreements for certain Evergy Missouri West senior notes, Evergy Missouri West is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreements, not greater than 0.65 to 1.00. In addition, Evergy Missouri West's priority debt, as defined in the agreements, cannot exceed 15 % of consolidated tangible net worth, as defined in the agreements. As of December 31, 2025, Evergy Missouri West was in compliance with these covenants.
In March 2025, Evergy Kansas Central issued, at a discount, $ 300.0  million of 4.70 % Notes, maturing in 2028. Proceeds were used to repay a portion of commercial paper and for general corporate purposes.
In August 2025, Evergy Metro repaid its $ 350.0  million of 3.65 % Senior Notes at maturity.
In August 2025, Evergy Missouri West repaid its $ 36.0  million of 3.49 % Senior Notes at maturity.
Convertible Notes
In December 2023, Evergy, Inc. issued $ 1.4  billion aggregate principal amount of 4.50 % Convertible Notes (Convertible Notes). The Convertible Notes will mature in December 2027, unless earlier converted or repurchased, but are not redeemable at the option of Evergy, Inc. No sinking fund is provided for the Convertible Notes. The Convertible Notes are direct, senior unsecured obligations of Evergy, Inc. and rank equal in right of payment to any of Evergy, Inc.'s unsecured indebtedness that is not so subordinated, including Evergy, Inc.'s master revolving credit agreement that governs its senior unsecured revolving credit facility, its commercial paper obligations and its 2.90 % Senior Notes due 2029. The Convertible Notes are not guaranteed by any of Evergy, Inc.'s subsidiaries.
Holders may convert their Convertible Notes at any time prior to the close of business on the business day immediately preceding September 15, 2027 only under the following circumstances:
a. During any calendar quarter commencing after the calendar quarter ending on March 31, 2024 (and only such calendar quarter), if the last reported sales price of Evergy, Inc. common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price on each applicable trading day;
b. During the five business day period after any ten consecutive trading day period (Measurement Period) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the Measurement Period was less than 98 % of the product of the last reported sale price of Evergy, Inc. common stock and the conversion rate on each such trading day; or
c. Upon the occurrence of specific corporate events specified in the indenture governing the Convertible Notes.
On or after September 15, 2027 until the close of business on the business day immediately preceding the maturity date, a holder may convert their notes at any time, regardless of the foregoing circumstances.
Upon conversion, Evergy, Inc. will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of Evergy, Inc. common stock or a combination of cash and shares of Evergy, Inc. common stock, at Evergy, Inc.’s election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted, as described in the indenture governing the Convertible Notes. The Convertible Notes were initially convertible at a rate of 16.1809 shares of Evergy, Inc. common stock per $1,000 principal amount of Convertible Notes, which was equivalent to an initial conversion price of approximately $ 61.80 per share of Evergy, Inc. common stock. The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest.
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In addition, following certain corporate events that occur prior to the maturity date, Evergy, Inc. will, in certain circumstances, increase the conversion rate for a holder who elects to convert their Convertible Notes in connection with such a corporate event. If Evergy, Inc. undergoes a fundamental change, a holder may require Evergy, Inc. to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
In January and February 2026, Evergy, Inc. repurchased $ 244.1  million aggregate principal amount of the Convertible Notes, under separate, privately negotiated repurchase agreements with certain holders of its Convertible Notes, for a total repurchase cost (excluding accrued and unpaid interest) of approximately $ 308.6  million. The repurchases were funded by Term Loan Credit Agreements executed in January and February 2026, see Note 11 for additional information on the Term Loan Credit Agreements. After these January and February 2026 repurchases, $ 1,155.9  million aggregate principal amount of Convertible Notes remain outstanding.
Pollution Control Bonds
In July 2025, Evergy Metro remarketed its unsecured Series 2008 EIRR bonds maturing in 2038 totaling $ 23.4  million at a fixed rate of 4.05 % through June 2030.
In November 2025, Evergy Kansas Central redeemed and reissued its variable rate Series 1994 pollution control bonds maturing in 2032 totaling $ 45.0  million and $ 30.5  million at a fixed rate of 3.50 % through April 2032.
Scheduled Maturities
Evergy's, Evergy Kansas Central's and Evergy Metro's long-term debt maturities for the next five years are detailed in the following table.

2026 2027 2028 2029 2030
(millions)
Evergy (a)
$ 367.0   $ 2,039.8   $ 318.8   $ 819.8   $ 420.8  
Evergy Kansas Central 350.0   321.9   300.0   —   —  
Evergy Metro —   —   —   —   400.0  

(a) The Evergy maturities for 2027 are inclusive of the $ 244.1  million of Convertible Notes that were repurchased in January and February 2026, based on agreements that were executed in January 2026. This principal amount is reflected as a long-term liability on the consolidated balance sheet as of December 31, 2025.

13. DERIVATIVE INSTRUMENTS
Commodity Price Risk
The Evergy Companies engage in the wholesale and retail sale of electricity as part of their regulated electric operations. These activities expose the Evergy Companies to market risks associated with the price of electricity, natural gas and other energy-related products. Management has established risk management policies and strategies to reduce the potentially adverse effects that the volatility of the markets may have on the Evergy Companies' operating results. The Evergy Companies' commodity risk management activities, which are subject to the management, direction and control of an internal risk management committee, utilize derivative instruments to reduce the effects of fluctuations in wholesale sales and fuel and purchased power expense caused by commodity price volatility.
Interest Rate Risk
The Evergy Companies are also exposed to market risks arising from changes in interest rates and may use derivative instruments to manage these risks. The Evergy Companies' interest rate risk management activities have included using derivative instruments to hedge against future interest rate fluctuations on anticipated debt issuances. From time to time, this may include entering into interest rate swap agreements to mitigate exposure to interest rate fluctuations associated with forecasted debt transactions.
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Trading
The Evergy Companies also engage in non-regulated energy marketing activity for trading purposes, primarily at Evergy Kansas Central, which focuses on seizing market opportunities to create value driven by expected changes in the market prices of commodities, primarily electricity and natural gas.
Accounting for Derivative Instruments
The Evergy Companies consider various qualitative factors, such as contract and marketplace attributes, in designating derivative instruments at inception. The Evergy Companies may elect the normal purchases and normal sales (NPNS) exception, which requires the effects of the derivative to be recorded when the underlying contract settles under accrual accounting. The Evergy Companies account for derivative instruments that are not designated as NPNS as (i) economic hedges or trading contracts (non-hedging derivatives) or (ii) cash flow hedges, which are recorded as assets or liabilities on the consolidated balance sheets at fair value. See Note 14 for additional information on the Evergy Companies' methods for assessing the fair value of derivative instruments.
Changes in the fair value of derivative instruments designated as economic hedges (non-hedging derivatives) that are related to the Evergy Companies' regulated operations are deferred to a regulatory asset or regulatory liability when determined to be probable of future recovery or refund from/to customers. Recovery of the actual costs incurred by regulated activities will not impact earnings but will impact cash flows due to the timing of the recovery mechanism.
Changes in the fair value of derivative instruments designated as trading contracts (non-hedging derivatives) are recorded in operating revenues on the Evergy Companies' statements of income and comprehensive income.
Changes in the fair value of interest rate swaps designated as cash flow hedges are initially recorded in OCI. These amounts are subsequently reclassified into earnings as an adjustment to interest expense over the same period that the hedged interest payments affect earnings. The Evergy Companies classify cash flows from derivative instruments accounted for as a cash flow hedge in the same category as the cash flows from the items being hedged.
The Evergy Companies offset fair value amounts recognized for derivative instruments under master netting arrangements, which include rights to reclaim cash collateral (a receivable), or the obligation to return cash collateral (a payable).
The gross notional contract amount by commodity type for non-hedging derivative instruments is summarized in the following table.

December 31
Non-hedging derivatives Notional volume unit of measure 2025 2024
Evergy (millions)
Commodity contracts
Power MWhs 63.0   51.3  
Natural gas MMBtu 54.6   598.7  
Evergy Kansas Central
Commodity contracts
Power MWhs 41.0   31.3  
Natural gas MMBtu 54.6   598.7  
Evergy Metro
Commodity contracts
Power MWhs 16.5   15.3  

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The fair values of Evergy's open non-hedging derivative positions and balance sheet classifications are summarized in the following tables. The fair values below are gross values before netting agreements and netting of cash collateral.

December 31
Evergy 2025 2024
Non-hedging derivatives Balance sheet location
Commodity contracts (millions)
Power Other assets - current $ 40.8   $ 24.6  
Other assets - long-term 35.1   43.8  
Natural gas Other assets - current 6.4   16.9  
Other assets - long-term —   2.1  
Total derivative assets $ 82.3   $ 87.4  
Commodity contracts
Power Other liabilities - current $ 30.8   $ 14.2  
Other liabilities - long-term 37.0   41.5  
Natural gas Other liabilities - current 6.7   17.9  
Other liabilities - long-term 0.1   2.1  
Total derivative liabilities $ 74.6   $ 75.7  

December 31
Evergy Kansas Central 2025 2024
Non-hedging derivatives Balance sheet location
Commodity contracts (millions)
Power Other assets - current $ 33.4   $ 11.3  
Other assets - long-term 35.1   43.8  
Natural gas Other assets - current 6.4   16.9  
Other assets - long-term —   2.1  
Total derivative assets $ 74.9   $ 74.1  
Commodity contracts
Power Other liabilities - current $ 27.9   $ 11.5  
Other liabilities - long-term 37.0   41.5  
Natural gas Other liabilities - current 6.7   17.9  
Other liabilities - long-term 0.1   2.1  
Total derivative liabilities $ 71.7   $ 73.0  

December 31
Evergy Metro 2025 2024
Non-hedging derivatives Balance sheet location
Commodity contracts (millions)
Power Other assets - current $ 6.6   $ 10.1  

Total derivative assets $ 6.6   $ 10.1  
Commodity contracts
Power Other liabilities - current $ 2.3   $ 2.0  

Total derivative liabilities $ 2.3   $ 2.0  

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The following tables present the line items on the Evergy Companies' consolidated balance sheets where non-hedging derivative assets and liabilities are reported. The gross amounts offset in the tables below show the effect of master netting arrangements and include collateral posted to offset the net position.

December 31, 2025 Evergy Evergy Kansas Central Evergy Metro
Non-hedging derivatives (millions)
Derivative Assets
Current
Gross amounts recognized $ 47.2   $ 39.8   $ 6.6  
Gross amounts offset ( 29.9 ) ( 27.0 ) ( 2.3 )
Net amounts presented in other assets - current $ 17.3   $ 12.8   $ 4.3  
Long-Term
Gross amounts recognized $ 35.1   $ 35.1   $ —  
Gross amounts offset ( 8.0 ) ( 8.0 ) —  
Net amounts presented in other assets - long-term $ 27.1   $ 27.1   $ —  
Derivative Liabilities
Current
Gross amounts recognized $ 37.5   $ 34.6   $ 2.3  
Gross amounts offset ( 29.3 ) ( 26.4 ) ( 2.3 )
Net amounts presented in other liabilities - current $ 8.2   $ 8.2   $ —  
Long-Term
Gross amounts recognized $ 37.1   $ 37.1   $ —  
Gross amounts offset ( 7.5 ) ( 7.5 ) —  
Net amounts presented in other liabilities - long-term $ 29.6   $ 29.6   $ —  

December 31, 2024 Evergy Evergy Kansas Central Evergy Metro

Non-hedging derivatives (millions)
Derivative Assets
Current
Gross amounts recognized $ 41.5   $ 28.2   $ 10.1  
Gross amounts offset ( 28.4 ) ( 25.7 ) ( 2.0 )
Net amounts presented in other assets - current $ 13.1   $ 2.5   $ 8.1  
Long-Term
Gross amounts recognized $ 45.9   $ 45.9   $ —  
Gross amounts offset ( 12.0 ) ( 12.0 ) —  
Net amounts presented in other assets - long-term $ 33.9   $ 33.9   $ —  
Derivative Liabilities
Current
Gross amounts recognized $ 32.1   $ 29.4   $ 2.0  
Gross amounts offset ( 26.1 ) ( 23.4 ) ( 2.0 )
Net amounts presented in other liabilities - current $ 6.0   $ 6.0   $ —  
Long-Term
Gross amounts recognized $ 43.6   $ 43.6   $ —  
Gross amounts offset ( 3.8 ) ( 3.8 ) —  
Net amounts presented in other liabilities - long-term $ 39.8   $ 39.8   $ —  

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The following table summarizes the amounts of gain (loss) recognized in income for the change in fair value of derivatives not designated as hedging instruments for the Evergy Companies.

Non-hedging derivatives - Location of gain (loss) Contract type 2025 2024 2023
Evergy (millions)
Operating revenues Commodity $ 41.8   $ 23.6   $ 22.9  
Total $ 41.8   $ 23.6   $ 22.9  
Evergy Kansas Central
Operating revenues Commodity $ 41.8   $ 23.6   $ 22.9  
Total $ 41.8   $ 23.6   $ 22.9  

The following table summarizes the gross notional contract amount by type for hedging derivative instruments.

Hedging derivatives - Cash flow hedge Notional volume unit of measure December 31

2025 2024
Evergy (millions)
Interest rate swaps USD $ 100.0   $ —  

The fair value of Evergy's open hedging derivative positions and balance sheet classifications are summarized in the following table. The fair values represent both the gross and net impact of netting agreements and the netting of cash collateral.

Hedging derivatives - Cash flow hedge Balance sheet location December 31

2025 2024
Interest rate swaps (millions)

Other assets - long-term $ 0.6   $ —  
Total derivative assets $ 0.6   $ —  

Credit risk of the Evergy Companies' derivative instruments relates to the potential adverse financial impact resulting from non-performance by a counterparty of its contractual obligations. The Evergy Companies maintain credit policies and employ credit risk mitigation, such as collateral requirements or letters of credit, when necessary to minimize their overall credit risk and monitor exposure. Substantially all of the Evergy Companies' counterparty credit risk associated with derivative instruments relates to Evergy Kansas Central's non-regulated energy marketing activities. As of December 31, 2025, if counterparty groups completely failed to perform on contracts, Evergy's and Evergy Kansas Central's maximum exposure related to derivative assets was $ 35.8  million. As of December 31, 2025, the potential loss after the consideration of applicable master netting arrangements and collateral received for Evergy and Evergy Kansas Central was $ 27.0  million.
Certain of the Evergy Companies' derivative instruments contain collateral provisions that are tied to the Evergy Companies' credit ratings and may require the posting of collateral for various reasons, including if the Evergy Companies' credit ratings were to fall below investment grade. Substantially all of these derivative instruments relate to Evergy Kansas Central's non-regulated energy marketing activities. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of December 31, 2025, was $ 35.6  million for which Evergy and Evergy Kansas Central have posted $ 5.1  million collateral in the normal course of business. If the credit-risk-related contingent features underlying these agreements were triggered as of December 31, 2025, Evergy and Evergy Kansas Central could be required to post an additional $ 28.8  million of collateral to their counterparties.

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14. FAIR VALUE MEASUREMENTS
Values of Financial Instruments
GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at NAV, which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below.
Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges or exchange-traded derivative instruments.
Level 2 –  Pricing inputs are not quoted prices in active markets but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets, non-exchange traded derivative instruments with observable forward curves and options contracts.
Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. The types of assets and liabilities included in Level 3 are non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and transmission congestion rights (TCRs) in the SPP Integrated Marketplace.
NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments.
The Evergy Companies record cash and cash equivalents, accounts receivable and short-term borrowings on their consolidated balance sheets at cost, which approximates fair value due to the short-term nature of these instruments.
Fair Value of Long-Term Debt
The Evergy Companies measure the fair value of long-term debt using Level 2 measurements available as of the measurement date. The book value and fair value of the Evergy Companies' long-term debt are summarized in the following table.

December 31, 2025 December 31, 2024
Book Value Fair Value Book Value Fair Value
Long-term debt (a)
(millions)
Evergy (b)
$ 13,406.2   $ 13,018.9   $ 12,460.9   $ 11,535.0  
Evergy Kansas Central 5,233.1   4,812.1   4,583.5   4,031.7  
Evergy Metro 3,271.4   3,122.7   3,223.4   2,966.3  

(a) Includes current maturities.
(b) Book value as of December 31, 2025 and 2024, includes $ 76.1 million and $ 81.7 million, respectively, of fair value adjustments recorded in connection with purchase accounting for the merger that created Evergy, which are not part of future principal payments and will amortize over the remaining life of the associated debt instrument.
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Recurring Fair Value Measurements
The following tables include balances of financial assets and liabilities measured at fair value on a recurring basis.

Description December 31, 2025 Netting Level 1 Level 2 Level 3 NAV
Evergy Kansas Central (millions)
Assets

Nuclear decommissioning trust (a)

Domestic equity funds $ 159.8   $ —  $ 151.5   $ —   $ —   $ 8.3  
International equity funds 95.9   —  95.9   —   —   —  
Core bond fund 71.5   —  71.5   —   —   —  
High-yield bond fund 23.9   —  23.9   —   —   —  
Emerging markets bond fund 23.9   —  23.9   —   —   —  
Combination debt/equity/other fund 23.8   —  23.8   —   —   —  
Alternative investments fund 49.6   —  —   —   —   49.6  
Real estate securities fund 16.8   —  —   —   —   16.8  
Cash equivalents 0.8   —  0.8   —   —   —  

Total nuclear decommissioning trust 466.0   —  391.3   —   —   74.7  
Rabbi trust
Fixed income funds 13.7   —  13.7   —   —   —  
Equity funds 7.8   —  7.8   —   —   —  
Combination debt/equity/other fund 1.8   —  1.8   —   —   —  
Cash equivalents 0.2   —  0.2   —   —   —  
Total rabbi trust 23.5   —  23.5   —   —   —  
Derivative instruments - commodity contracts (b)

Power 38.7   ( 29.8 ) 30.1   36.3   2.1   —  
Natural gas 1.2   ( 5.2 ) 6.4   —   —   —  
Total derivative assets 39.9   ( 35.0 ) 36.5   36.3   2.1   —  
Total assets 529.4   ( 35.0 ) 451.3   36.3   2.1   74.7  
Liabilities
Derivative instruments - commodity contracts (b)

Power 36.2   ( 28.7 ) 23.5   39.1   2.3   —  
Natural gas 1.6   ( 5.2 ) 6.8   —   —   —  
Total derivative liabilities 37.8   ( 33.9 ) 30.3   39.1   2.3   —  
Total liabilities $ 37.8   $ ( 33.9 ) $ 30.3   $ 39.1   $ 2.3   $ —  
Evergy Metro
Assets        
Nuclear decommissioning trust (a)
       
Equity securities $ 436.8   $ —  $ 436.8   $ —   $ —   $ —  
Debt securities
U.S. Treasury 56.8   —  56.8   —   —   —  
U.S. Agency 0.1   —  —   0.1   —   —  
State and local obligations 2.1   —  —   2.1   —   —  
Corporate bonds 51.5   —  —   51.5   —   —  

Cash equivalents 3.5   —  3.5   —   —   —  

Total nuclear decommissioning trust 550.8   —  497.1   53.7   —   —  
Self-insured health plan trust (c)

Equity securities 2.7   —  2.7   —   —   —  
Debt securities 15.3   —  3.8   11.5   —   —  
Cash and cash equivalents 2.5   —  2.5   —   —   —  
Total self-insured health plan trust 20.5   —  9.0   11.5   —   —  
Derivative instruments - commodity contracts (b)

Power 4.3   ( 2.3 ) —   —   6.6   —  

Total derivative assets 4.3   ( 2.3 ) —   —   6.6   —  
Total assets 575.6   ( 2.3 ) 506.1   65.2   6.6   —  
Liabilities
Derivative instruments - commodity contracts (b)

Power —   ( 2.3 ) —   —   2.3   —  

Total derivative liabilities —   ( 2.3 ) —   —   2.3   —  
Total liabilities $ —   $ ( 2.3 ) $ —   $ —   $ 2.3   $ —  

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Description December 31, 2025 Netting Level 1 Level 2 Level 3 NAV
Other Evergy (millions)
Assets

Rabbi trusts
Core bond fund $ 7.7   $ —  $ 7.7   $ —   $ —   $ —  

Total rabbi trusts 7.7   —  7.7   —   —   —  
Derivative instruments - commodity contracts (b)

Power 0.2   ( 0.6 ) —   —   0.8   —  

Derivative instruments - interest rate swaps (b)
0.6   —   —   0.6   —   —  
Total derivative assets 0.8   ( 0.6 ) —   0.6   0.8   —  
Total assets 8.5   ( 0.6 ) 7.7   0.6   0.8   —  
Liabilities
Derivative instruments - commodity contracts (b)

Power —   ( 0.6 ) —   —   0.6   —  

Total derivative liabilities —   ( 0.6 ) —   —   0.6   —  
Total liabilities $ —   $ ( 0.6 ) $ —   $ —   $ 0.6   $ —  
Evergy        
Assets        
Nuclear decommissioning trust (a)
$ 1,016.8   $ —  $ 888.4   $ 53.7   $ —   $ 74.7  
Rabbi trusts 31.2   —  31.2   —   —   —  
Self-insured health plan trust (c)
20.5   —  9.0   11.5   —   —  

Derivative instruments - commodity contracts (b)

Power 43.2   ( 32.7 ) 30.1   36.3   9.5   —  
Natural gas 1.2   ( 5.2 ) 6.4   —   —   —  
Derivative instruments - interest rate swaps (b)
0.6   —   —   0.6   —   —  
Total derivative assets 45.0   ( 37.9 ) 36.5   36.9   9.5   —  
Total assets 1,113.5   ( 37.9 ) 965.1   102.1   9.5   74.7  
Liabilities
Derivative instruments - commodity contracts (b)

Power 36.2   ( 31.6 ) 23.5   39.1   5.2   —  
Natural gas 1.6   ( 5.2 ) 6.8   —   —   —  

Total derivative liabilities 37.8   ( 36.8 ) 30.3   39.1   5.2   —  
Total liabilities $ 37.8   $ ( 36.8 ) $ 30.3   $ 39.1   $ 5.2   $ —  

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Description December 31, 2024 Netting Level 1 Level 2 Level 3 NAV
Evergy Kansas Central (millions)
Assets
Nuclear decommissioning trust (a)

Domestic equity funds $ 142.9   $ —  $ 134.0   $ —   $ —   $ 8.9  
International equity funds 81.6   —  81.6   —   —   —  
Core bond fund 66.7   —  66.7   —   —   —  
High-yield bond fund 33.7   —  33.7   —   —   —  
Emerging markets bond fund 20.6   —  20.6   —   —   —  

Alternative investments fund 45.6   —  —   —   —   45.6  
Real estate securities fund 16.3   —  —   —   —   16.3  
Cash equivalents 0.5   —  0.5   —   —   —  
Total nuclear decommissioning trust 407.9   —  337.1   —   —   70.8  
Rabbi trust
Fixed income funds 14.6   —  14.6   —   —   —  
Equity funds 6.9   —  6.9   —   —   —  
Combination debt/equity/other fund 1.7   —  1.7   —   —   —  
Cash equivalents 0.2   —  0.2   —   —   —  
Total rabbi trust 23.4   —  23.4   —   —   —  
Derivative instruments - commodity contracts (b)

Power 35.1   ( 20.0 ) 11.7   40.5   2.9   —  
Natural gas 1.3   ( 17.7 ) 18.9   0.1   —   —  
Total derivative assets 36.4   ( 37.7 ) 30.6   40.6   2.9   —  
Total assets 467.7   ( 37.7 ) 391.1   40.6   2.9   70.8  
Liabilities
Derivative instruments - commodity contracts (b)

Power 43.5   ( 9.5 ) 4.5   44.2   4.3   —  
Natural gas 2.3   ( 17.7 ) 19.9   0.1   —   —  
Total derivative liabilities 45.8   ( 27.2 ) 24.4   44.3   4.3   —  
Total liabilities $ 45.8   $ ( 27.2 ) $ 24.4   $ 44.3   $ 4.3   $ —  
Evergy Metro
Assets        
Nuclear decommissioning trust (a)
     
Equity securities $ 368.8   $ —  $ 368.8   $ —   $ —   $ —  
Debt securities          
U.S. Treasury 55.3   —  55.3   —   —   —  

State and local obligations 2.1   —  —   2.1   —   —  
Corporate bonds 42.7   —  —   42.7   —   —  

Cash equivalents 3.0   —  3.0   —   —   —  

Total nuclear decommissioning trust 471.9   —  427.1   44.8   —   —  
Self-insured health plan trust (c)

Equity securities 2.3   —  2.3   —   —   —  
Debt securities 14.3   —  3.2   11.1   —   —  
Cash and cash equivalents 2.3   —  2.3   —   —   —  
Total self-insured health plan trust 18.9   —  7.8   11.1   —   —  
Derivative instruments - commodity contracts (b)

Power 8.1   ( 2.0 ) —   —   10.1   —  

Total derivative assets 8.1   ( 2.0 ) —   —   10.1   —  
Total assets 498.9   ( 2.0 ) 434.9   55.9   10.1   —  
Liabilities
Derivative instruments - commodity contracts (b)

Power —   ( 2.0 ) —   —   2.0   —  

Total derivative liabilities —   ( 2.0 ) —   —   2.0   —  
Total liabilities $ —   $ ( 2.0 ) $ —   $ —   $ 2.0   $ —  

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Description December 31, 2024 Netting Level 1 Level 2 Level 3 NAV
Other Evergy (millions)
Assets

Rabbi trusts
Core bond fund $ 8.0   $ —  $ 8.0   $ —   $ —   $ —  
Total rabbi trusts 8.0   —  8.0   —   —   —  
Derivative instruments - commodity contracts (b)

Power 2.5   ( 0.7 ) —   —   3.2   —  

Total derivative assets 2.5   ( 0.7 ) —   —   3.2   —  
Total assets 10.5   ( 0.7 ) 8.0   —   3.2   —  
Liabilities
Derivative instruments - commodity contracts (b)

Power —   ( 0.7 ) —   —   0.7   —  

Total derivative liabilities —   ( 0.7 ) —   —   0.7   —  
Total liabilities $ —   $ ( 0.7 ) $ —   $ —   $ 0.7   $ —  
Evergy        
Assets        
Nuclear decommissioning trust (a)
$ 879.8   $ —  $ 764.2   $ 44.8   $ —   $ 70.8  
Rabbi trusts 31.4   —  31.4   —   —   —  
Self-insured health plan trust (c)
18.9   —  7.8   11.1   —   —  

Derivative instruments - commodity contracts (b)

Power 45.7   ( 22.7 ) 11.7   40.5   16.2   —  
Natural gas 1.3   ( 17.7 ) 18.9   0.1   —   —  
Total derivative assets 47.0   ( 40.4 ) 30.6   40.6   16.2   —  
Total assets 977.1   ( 40.4 ) 834.0   96.5   16.2   70.8  
Liabilities
Derivative instruments - commodity contracts (b)

Power 43.5   ( 12.2 ) 4.5   44.2   7.0   —  
Natural gas 2.3   ( 17.7 ) 19.9   0.1   —   —  
Total derivative liabilities 45.8   ( 29.9 ) 24.4   44.3   7.0   —  
Total liabilities $ 45.8   $ ( 29.9 ) $ 24.4   $ 44.3   $ 7.0   $ —  

(a) With the exception of investments measured at NAV, fair value is based on quoted market prices of the investments held by the trust and/or valuation models.  
(b) Derivative instruments classified as Level 1 consist of exchange-traded derivative instruments with fair value based on quoted market prices. Derivative instruments classified as Level 2 consist of non-exchange traded derivative instruments with observable forward curves and option contracts priced with models using observable inputs. Derivative instruments classified as Level 3 consist of non-exchange traded derivative instruments for which observable market data is not available to corroborate the valuation inputs and TCRs valued at the most recent auction price in the SPP Integrated Marketplace.
(c) 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.
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Certain Evergy and Evergy Kansas Central investments included in the table above are measured at NAV as they do not have readily determinable fair values. In certain situations, these investments may have redemption restrictions. The following table provides additional information on these Evergy and Evergy Kansas Central investments.

December 31, 2025 December 31, 2024 December 31, 2025
Fair Unfunded Fair Unfunded Redemption Length of
Value Commitments Value Commitments Frequency Settlement
Evergy Kansas Central (millions)
Nuclear decommissioning trust:
Domestic equity funds $ 8.3   $ 1.3   $ 8.9   $ 1.3   (a) (a)
Alternative investments fund (b)
49.6   —   45.6   —   Quarterly 65 days

Real estate securities fund (b)
16.8   —   16.3   —   Quarterly 65 days

Total Evergy investments at NAV $ 74.7   $ 1.3   $ 70.8   $ 1.3  

(a) This investment is in four 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. All funds have begun to make distributions.
(b) There is a holdback on final redemptions.
The Evergy Companies hold equity and debt investments classified as securities in various trusts including for the purposes of funding the decommissioning of Wolf Creek and for the benefit of certain retired executive officers of Evergy Kansas Central. The Evergy Companies record net realized and unrealized gains and losses on the nuclear decommissioning trusts in regulatory liabilities on their consolidated balance sheets and record net realized and unrealized gains and losses on the Evergy Companies' rabbi trusts in the consolidated statements of income and comprehensive income.
The following table summarizes the net unrealized gains (losses) for the Evergy Companies' nuclear decommissioning trusts and rabbi trusts.

2025 2024 2023
Evergy (millions)
Nuclear decommissioning trust - equity securities $ 61.9   $ 89.3   80.4  
Nuclear decommissioning trust - debt securities 2.3   ( 1.1 ) 2.7  
Rabbi trusts - equity securities 2.2   0.4   2.4  
Total $ 66.4   $ 88.6   $ 85.5  
Evergy Kansas Central
Nuclear decommissioning trust - equity securities $ ( 3.4 ) $ 31.1   28.3  
Rabbi trust - equity securities 1.8   0.4   2.0  
Total $ ( 1.6 ) $ 31.5   $ 30.3  
Evergy Metro
Nuclear decommissioning trust - equity securities $ 65.3   $ 58.2   52.1  
Nuclear decommissioning trust - debt securities 2.3   ( 1.1 ) 2.7  
Total $ 67.6   $ 57.1   $ 54.8  

15. COMMITMENTS AND CONTINGENCIES
Environmental Matters
Set forth below are descriptions of contingencies related to environmental matters that may impact the Evergy Companies' operations or their financial results. Management's assessment of these contingencies, which are based on federal and state statutes and regulations, and regulatory agency and judicial interpretations and actions, has evolved over time. These laws, regulations, interpretations and actions can also change, restrict or otherwise impact the Evergy Companies' operations or financial results. The failure to comply with these laws, regulations, interpretations and actions could result in the assessment of administrative, civil and criminal penalties and the
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imposition of remedial requirements. The Evergy Companies believe that all their operations are in substantial compliance with current federal, state and local environmental standards.
There are a variety of final and proposed laws and regulations that could have a material adverse effect on the Evergy Companies' operations and consolidated financial results. Due in part to the complex nature of environmental laws and regulations, the Evergy Companies are unable to assess the impact of potential changes that may develop with respect to the environmental contingencies described below.
Ozone Interstate Transport State Implementation Plans (ITSIP)
In 2015, the EPA lowered the Ozone National Ambient Air Quality Standards (NAAQS) from 75 ppb to 70 ppb. States were required to submit ITSIPs in 2018 to comply with the "Good Neighbor Provision" of the Clean Air Act (CAA) as it applies to the revised NAAQS. The EPA did not act on these ITSIP submissions by the deadline established in the CAA and entered consent decrees establishing deadlines for the EPA to take final action on various ITSIPs. In February 2022, the EPA published a proposed rule to disapprove the ITSIPs submitted by nineteen states including Missouri and Oklahoma. In April 2022, the EPA published an approval of the Kansas ITSIP in the Federal Register. The Missouri Department of Natural Resources (MDNR) submitted a supplemental ITSIP to the EPA in November 2022. In February 2023, the EPA published a final rule disapproving the ITSIPs submitted by nineteen states, including the final disapproval of the Missouri and Oklahoma ITSIPs. In April 2023, the Attorneys General of Missouri and Oklahoma filed Petitions for Review in the U.S. Court of Appeals for the Eighth Circuit (Eighth Circuit) and the U.S. Court of Appeals for the Tenth Circuit (Tenth Circuit), respectively, challenging the EPA's disapproval. In May 2023, the Eighth Circuit granted a stay of the EPA's disapproval of the Missouri ITSIP. Similarly, in July 2023, the Tenth Circuit granted a stay of the EPA's disapproval of the Oklahoma ITSIP. In August 2024, the EPA published in the Federal Register a proposed rule to disapprove the supplemental ITSIP that Missouri submitted in November 2022. In January 2024, the EPA proposed to disapprove the previously-approved ITSIP for Kansas and ITSIPs submitted by four other states. To date, the EPA has not taken final action in this rulemaking. Disapproval of ITSIPs provides the EPA with authority to implement an interstate transport federal implementation plan (ITFIP) to replace them. As discussed below, the EPA has proposed to reevaluate and approve previously disapproved ITSIP submissions for five states, including Kansas. In the event that the ITSIPs for Missouri, Oklahoma and Kansas were disapproved and the EPA's ITFIP took effect, the impact on the Evergy Companies' operations and the cost to comply could be material.
Ozone Interstate Transport Federal Implementation Plans
In April 2022, the EPA published in the Federal Register the proposed ITFIP to resolve outstanding "Good Neighbor" obligations with respect to the 2015 Ozone NAAQS for twenty-six states including Missouri and Oklahoma. This ITFIP would establish a revised Cross-State Air Pollution Rule (CSAPR) ozone season nitrogen oxide (NOx) emissions trading program for Electric Generating Units (EGUs) beginning in 2023 and would limit ozone season NOx emissions from certain industrial stationary sources beginning in 2026. The proposed rule would also establish a new daily backstop NOx emissions rate limit for applicable coal-fired units larger than 100 MW, as well as unit-specific NOx emission rate limits for certain industrial emission units and would feature "dynamic" adjustments of emission budgets for EGUs beginning with ozone season 2025. The proposed ITFIP included reductions to the state ozone season NOx budgets for Missouri and Oklahoma beginning in 2023 with additional reductions in future years. The Evergy Companies provided formal comments as part of the rulemaking process. In March 2023, the EPA issued the final ITFIPs for twenty-three states, including Missouri and Oklahoma, which included reduced ozone season NOx budgets for EGUs in Missouri, Oklahoma and other states, and included other features and requirements that were in the proposed version of the rule. Because the EPA's authority to impose an ITFIP for a state is triggered by the state's failure to submit an ITSIP addressing NAAQS by the statutory deadline or disapproval of an ITSIP, the EPA lacks authority under the CAA to impose an ITFIP on a state for which an ITSIP disapproval has been stayed by the courts. Accordingly, the EPA issued interim final rules staying the effectiveness of the ITFIP in both Missouri and Oklahoma while the stays issued by the Eighth and Tenth Circuits in the ITSIP disapproval cases remain in place. During this time, both states will continue to operate under the existing CSAPR program. While Kansas was not originally included in the ITFIP, in January 2024, the EPA issued a proposal to include Kansas in the ITFIP. In June 2024, the U.S. Supreme Court issued an order granting emergency motions for stay filed by state and industry petitioners of the final ITFIP pending further review of the ITFIP by the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit). In March 2025, the EPA announced plans
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to end the Good Neighbor Rule for the 2015 Ozone NAAQS. In April 2025, the D.C. Circuit granted an EPA request to hold all challenges to the ITFIP in indefinite abeyance. In January 2026, the EPA published in the federal register a proposed "Phase 1" reconsideration rule addressing interstate transport requirements for six states, including Kansas. The EPA indicated they intend to address additional states, including Missouri, in a separate action. The Phase 1 proposal would reevaluate and approve previously disapproved ITSIP submissions for five states, including Kansas. As a result, Kansas would no longer be subject to the ITFIP if this rule is finalized. If the ITFIP ultimately takes effect as promulgated for Missouri, Kansas and Oklahoma following the pending litigation or the EPA is unable to end the program as proposed, the impact on the Evergy Companies' operations and the cost to comply could be material.
Particulate Matter National Ambient Air Quality Standards
In March 2024, the EPA published in the Federal Register the final rule which strengthens the primary annual PM 2.5 (particulate matter less than 2.5 microns in diameter) NAAQS by lowering the primary annual PM 2.5 NAAQS from 12.0 µg/m3 (micrograms per cubic meter) to 9.0 µg/m3. The final rule took effect in May 2024. In August 2024, the EPA released the PM 2.5 ambient monitor design values for calendar years 2021 through 2023. These design values are to be used by each state governor for recommending to the EPA attainment designations for their states. In February 2025, the Kansas Governor sent recommendations to the EPA to designate the entire state of Kansas as either attainment or attainment/unclassifiable for the 2024 annual PM 2.5 NAAQS. In March 2025, the EPA announced it plans to reconsider the 2024 PM 2.5 NAAQS. As a result of the EPA's plans to reconsider this NAAQS, the Missouri Governor delayed submitting area designations to the EPA. While the EPA is required to issue final designations for all states, including Kansas and Missouri, by February 2026, the issuance of final designations is in question based on the EPA's plans to reconsider this NAAQS. In November 2025, the EPA filed a motion requesting that the D.C. Circuit vacate the 2024 PM 2.5 NAAQS, asserting that the prior presidential administration's EPA failed to consider costs during its revision process and therefore did not conduct a thorough review, as required. Due to the uncertainty of the attainment status of portions of the service territory and potential reconsideration or court vacatur of the NAAQS, the Evergy Companies are unable to accurately assess the impacts on their operations or consolidated financial results, but the cost to comply with lower PM 2.5 NAAQS could be material.
Regional Haze Rule
In 1999, the EPA finalized the Regional Haze Rule which aims to restore national parks and wilderness areas to pristine conditions. The rule requires states in coordination with the EPA, the National Park Service, the U.S. Fish and Wildlife Service, the U.S. Forest Service, and other interested parties to develop and implement air quality protection plans to reduce the pollution that causes visibility impairment. There are 156 "Class I" areas across the U.S. that must be restored to pristine conditions by the year 2064. There are no Class I areas in Kansas, whereas Missouri has two: the Hercules-Glades Wilderness Area and the Mingo Wilderness Area. States must submit revisions to their Regional Haze Rule state implementation plans (SIPs) every ten years and the first round was due in 2007. For the second ten-year implementation period, the EPA issued a final rule revision in 2017 that allowed states to submit their SIP revisions by July 2021.
The Missouri SIP revision does not require any additional reductions from the Evergy Companies' generating units in the state. MDNR submitted the Missouri SIP revision to the EPA in August 2022, however, they failed to do so by the EPA's revised submittal deadline in August 2022. As a result, in August 2022, the EPA published "finding of failure" with respect to Missouri and fourteen other states for failing to submit their Regional Haze SIP revisions by the applicable deadline. This finding of failure established a two-year deadline for the EPA to issue a Regional Haze federal implementation plan (FIP) for each state unless the state submits and the EPA approves a revised SIP that meets all applicable requirements before the EPA issues the FIP. In July 2024, the EPA published in the Federal Register a proposal to partially approve and partially disapprove Missouri's Regional Haze SIP revision.
The Kansas SIP revision did not include any additional emission reductions by electric utilities based on the significant reductions that were achieved during the first implementation period. The Kansas Department of Health and Environment (KDHE) submitted the Kansas SIP revision in July 2021. In August 2024, the EPA issued the final disapproval of the Kansas SIP revision for failing to conduct a four-factor analysis for at least two emission sources in Kansas. In response to the August 2024 final disapproval, in October 2025, KDHE placed a
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supplemental Kansas SIP revision on public notice, and no adverse comments were received. In this supplement, the KDHE performed additional analyses for two Kansas emission sources, including Evergy's La Cygne Station, and determined no additional requirements should be necessary for any Kansas emission source. In January 2026, the KDHE submitted the supplement to the EPA for their approval.
In March 2025, the EPA announced plans to restructure the Regional Haze Program and in October 2025, the EPA published a Notice of Proposed Advanced Rulemaking requesting comments to assist in the development of regulatory changes to the current Regional Haze Program. In December 2025, the EPA issued a final rule extending the SIP revision deadline for the third ten-year implementation period from July 2028 to July 2031. Due to uncertainty regarding the status of the Regional Haze Program and when or if a Kansas or Missouri revised SIP or FIP is finalized, the overall costs of implementing the rules could be material to the Evergy Companies.
Greenhouse Gases
Burning coal and other fossil fuels releases carbon dioxide (CO 2 ) and other gases referred to as greenhouse gases (GHG). Various regulations under the CAA limit CO 2 and other GHG emissions, and in addition, other measures are being imposed or offered by individual states, municipalities and regional agreements with the goal of reducing GHG emissions. In April 2024, the EPA finalized the GHG regulations and GHG guidelines that apply to new and existing fossil-fuel fired EGUs. The final GHG regulation establishes CO 2 limitations on emissions from new and reconstructed stationary combustion turbines. The GHG guidelines set CO 2 emission limitations for existing coal, oil and gas-fired steam generating units. For new and reconstructed stationary combustion turbines, the emission limitations were developed by applying the Best System of Emission Reduction (BSER) to three distinct subcategories (low load, intermediate load and base load) taking into consideration the annual capacity factor of the stationary combustion turbine. For intermediate and base load stationary combustion turbines, BSER is assumed to be the utilization of highly efficient combustion turbine technology. Base load stationary combustion turbines are also required to consider the emissions reduction associated with the application of carbon capture and sequestration (CCS) beginning in 2032. For existing coal-fired EGUs, the emission limitations were established by applying the BSER to two subcategories (medium and long-term). For medium-term existing coal-fired units, which are units retiring between 2032 and 2038, the BSER established emission limitation is based on co-firing natural gas beginning in 2030. For units operating in 2039 and after, BSER is the application of CCS starting in 2032. In July 2024, the D.C. Circuit denied motions of stay filed by various states, industry and trade organizations; however, the D.C. Circuit has ordered expedited review of the challenges to the final regulations and guidelines. In December 2024, a three-judge panel of the D.C. Circuit heard oral arguments on challenges to the merits of the rule. In March 2025, the EPA announced it plans to reconsider the GHG regulation and guidelines. While the EPA reconsiders the GHG regulation and guidelines, the D.C. Circuit granted an unopposed motion to hold the case challenging the merits of the rule in abeyance. In June 2025, the EPA published a proposed rule to repeal both the 2015 GHG emission standards for new fossil-fuel fired EGUs and the April 2024 GHG emission standards for new and existing fossil-fuel fired EGUs. In the same June 2025 proposed rule, the EPA included an alternative proposal to repeal the most burdensome requirements of the 2024 rule including the elimination of CCS as BSER. In February 2026, the EPA issued a final rule rescinding the 2009 GHG Endangerment Finding (Endangerment Finding). The Endangerment Finding applies to GHG emissions from new motor vehicles and also provides justification for declaring GHG emissions as a threat to public health and welfare, thereby establishing the basis for regulating GHG emission under the CAA. As a result of the rescission of the Endangerment Finding, there is no justification for continuing to regulate GHG emissions from the power sector.
Due to uncertainty regarding when each of these proposed rules will be finalized, and the ongoing and potential for judicial review, the Evergy Companies are unable to accurately assess the impacts on their operations or consolidated financial results, but the cost to comply could be material.
Regulation of Coal Combustion Residuals
In the course of operating their coal generation plants, the Evergy Companies produce CCRs, including fly ash, gypsum and bottom ash. The EPA published a rule to regulate CCRs in April 2015 that requires additional CCR handling, processing and storage equipment and closure of certain ash disposal units. In January 2022, the EPA published proposed determinations for facilities that filed closure extensions for unlined or clay-lined CCR units. These proposed determinations include various interpretations of the CCR regulations and compliance expectations
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that may impact all owners of CCR units. These interpretations could require modified compliance plans such as different methods of CCR unit closure. Additionally, more stringent remediation requirements for units that are in corrective action or forced to go into corrective action are possible. The cost to comply with these proposed determinations by the EPA could be material.
In April 2024, the EPA finalized an expansion to the CCR regulations focused on legacy surface impoundments and historic placements of CCR. This regulation expands applicability of the 2015 CCR regulation to inactive landfills and beneficial use sites not previously regulated. Litigation could impact the timing or cost to comply. In March 2025, the EPA announced its plans to update regulations of CCRs, and in January 2026, finalized a rulemaking extending deadlines for compliance with various aspects of the CCR legacy rule. The EPA has indicated a second rulemaking modifying CCR requirements should be anticipated later in 2026, however specific details of any planned revisions have not been provided.
The Evergy Companies have recorded AROs for their current estimates for the closure of ash disposal ponds, landfills and other historical placements of CCR. The revision of these AROs may be required in the future due to information collected in the April 2024 CCR regulation's Facility Evaluation Reports (FERs), changes in existing CCR regulations, the results of groundwater monitoring of CCR units, changes in interpretation of existing CCR regulations or changes in the timing or cost to close ash disposal ponds and landfills. The revision of AROs for regulated operations has no income statement impact due to the deferral of the adjustments through a regulatory asset. If revisions to these AROs are necessary, the impact on the Evergy Companies' operations or consolidated financial results could be material.
Montrose Station CCRs
In 2025, three lawsuits, including one seeking class certification, were filed in the Circuit Court of Henry County, Missouri against Evergy Metro and two other defendants alleging unspecified damages resulting from the defendants' alleged unlawful and negligent spreading of CCRs associated with the Montrose Station coal ash landfill. Montrose Station was a coal-fired generating facility which was operated by Evergy Metro until its closure in 2018. The cases are at preliminary stages and Evergy and Evergy Metro are unable to assess the outcome or reasonably estimate any possible damages with respect to the claims. However, Evergy and Evergy Metro believe the claims are without merit and intend to vigorously defend themselves.
Nuclear Antitrust Class Action
In July 2025, a class action complaint was filed in the U.S. District Court for the District of Maryland alleging violations of the Sherman Antitrust Act in establishing wages for employees at nuclear facilities since 2003. The complaint names 28 defendants, including all 26 owner operators of nuclear facilities in the United States, or affiliated entities, including Wolf Creek Nuclear Operating Corporation, which operates Wolf Creek, a nuclear facility in Kansas. Evergy indirectly owns 94 % of Wolf Creek, with Evergy Kansas Central and Evergy Metro each owning 47 % of the nuclear facility. This case is at a preliminary stage and the Evergy Companies are unable to assess the outcome or reasonably estimate any possible damages with respect to the claims.