Evergy Inc.

Evergy incurred $341.3 million of fuel and purchased power costs, net of wholesale revenues during the February 2021 winter storm. This reflects about $300 million in incurred costs at Evergy Missouri West Inc. and $120 million at Evergy Kansas Central Inc., offset by the benefit of $77 million in net wholesale revenues at Evergy Metro Inc. The stable outlook on Evergy reflects our base-case scenario that its regulated utility operations will continue to generate sufficient cash flow to maintain financial measures that support adjusted funds from operations (FFO) to debt of 15%-16% through 2023. The outlook also reflects the ongoing realization of synergies that result in operational improvements and cost savings. We could lower the rating if the financial risk

...House Bill 7032 enacted in Kansas is constructive for Evergy's credit quality. In late April 2021, Kansas state legislators enacted legislation permitting the Kansas Corporation Commission to authorize securitization financing for certain generating facilities and qualified extraordinary costs, including those incurred from the February 2021 winter storm. We believe this is constructive for credit quality because it provides Evergy a way to recover these costs, net of any wholesale revenues; the new law also will provide securitization of stranded costs due to the early retirement of generation facilities. Evergy incurred $341.3 million of fuel and purchased power costs, net of wholesale revenues during the February 2021 winter storm. This reflects about $300 million in incurred costs at Evergy Missouri West Inc. and $120 million at Evergy Kansas Central Inc., offset by the benefit of $77 million in net wholesale revenues at Evergy Metro Inc. With elevated capital spending, Evergy's consolidated...

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