Evergy Inc.

Overview Key strengths Key risks Fully regulated, vertically integrated utility operations. Remaining coal-based generation continues to expose the company to environmental risks. Generally supportive regulation including securitization of storm restoration costs. Revenues depend on higher-than-average industrial sales in the company?s service territories. Securitization to help transition away from coal-fired generation. Negative discretionary cash flow (DCF) indicates external funding needs. In February 2024, EMW filed a request for rate increases with the Missouri Public Service Commission (MPSC) of about $108.9 million, reflecting 10.5% return on equity (ROE), with new rates expected to be in effect in January 2025. The MPSC staff recommended a base rate increase of about $78 million premised upon 9.74% ROE. We continue to monitor the rate case

...We continue to monitor the pending rate case at Evergy Inc. (Evergy) subsidiary Evergy Missouri West Inc. (EMW). In February 2024, EMW filed a request for rate increases with the Missouri Public Service Commission (MPSC) of about $108.9 million, reflecting 10.5% return on equity (ROE), with new rates expected to be in effect in January 2025. The MPSC staff recommended a base rate increase of about $78 million premised upon 9.74% ROE. We continue to monitor the rate case and believe it will support credit quality. Evergy's 2024 integrated resource plan (IRP) reflects proposed generation fleet updates. In April 2024, Evergy filed its latest IRP with the MPSC proposing to add about 1,900 megawatts (MW) of additional generation over the next 10 years relative to the 2023 update and retire about 4,500 MW of fossil-fuel-based generation through 2043. However, the company's strategy of...

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