Evergy Metro Inc.

Overview Key strengths Key risks Fully regulated, vertically integrated electric utility. Fossil-based generation fleet exposes the company to operating risks. Effective management of regulatory risk in Kansas and Missouri. Lack of geographic diversity. Robust financial measures. Negative cash flow after capital spending and dividends. Kansas Metro expects to return $42 million of revenues earned during the storm, while Missouri Metro expects to return the $28 million it earned. Through 2025, we expect the company to spend roughly $3 billion, over half of which it will spend in Missouri with the remainder in Kansas. While we believe Evergy Metro's regulatory construct provides it with multiple avenues for cost recovery--including those implemented through Missouri Senate Bill 564--its credit quality ultimately depends on

... utility. Fossil-based generation fleet exposes the company to operating risks. Effective management of regulatory risk in Kansas and Missouri. Lack of geographic diversity. Robust financial measures. Negative cash flow after capital spending and dividends. We expect Evergy Metro Inc. to pass through to customers wholesale revenue made during the February 2021 winter storm. Kansas Metro expects to return $42 million of revenues earned during the storm, while Missouri Metro expects to return the $28 million it earned. Given its elevated capital spending, Evergy Metro's credit quality depends on the receipt of timely rate increases and its continued access to funding. Through 2025, we expect the company to spend roughly $3 billion, over half of which it will spend in Missouri with the remainder in Kansas. While we believe Evergy Metro's regulatory construct provides it with multiple avenues for cost recovery-- including those implemented through...

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