Evergy, Inc. (EVRG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Evergy, Inc. surfaced in its latest filing.

• Effective July 2024, Evergy Kansas Central and Evergy Metro elected PISA provisions allowed by Kansas law to defer 90% of depreciation expense and return on investment for qualifying plant additions, with a 1.5% annual limit on base rate increases for recovery.July 2024
• Evergy Metro and Evergy Missouri West elected PISA provisions under Missouri law with a 2.5% annual limit on revenue requirement increases from PISA regulatory assets.
• The EPA has begun issuing CCR Part A and Part B rule extension application determinations that may impact all owners of CCR units, including the Evergy Companies, despite not applying for an extension.
• Evergy Kansas Central and Evergy Metro have outstanding tax-exempt bonds with weekly reset rates, which if tendered and not remarketed, must be purchased by the issuer.
• Evergy Metro and Evergy Missouri West committed to Missouri regulators to not pay dividends to Evergy if their credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investors Service.
• Evergy Kansas Central and Evergy Metro committed to Kansas regulators to not pay dividends to Evergy if the payment would increase the utility's debt level above 60% of total capitalization absent KCC approval.
• Evergy Kansas Central and Evergy Metro committed to Kansas regulators to not pay dividends to Evergy if their credit rating falls below BBB- for S&P Global Ratings or Baa3 for Moody's Investors Service.
• Evergy Companies must maintain a consolidated indebtedness to consolidated total capitalization ratio of not more than 0.65 to 1.00 under various debt agreements.
• Evergy may not declare or pay any cash dividend or distribution on its capital stock during any period in which it defers interest on outstanding junior subordinated notes.
• The current presidential administration has implemented tariffs on certain imported goods and may impose additional tariffs.
• The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025 and changed most federal renewable energy initiatives.July 4, 2025
• Kansas enacted legislation establishing a two-year statute of limitations for wildfire-related claims against public utilities, a cap on punitive damages, and a preponderance of evidence standard.
• Evergy indirectly owns 94% of Wolf Creek nuclear plant, with Evergy Kansas South and Evergy Metro each owning 47%; Wolf Creek commenced operations in 1985.1985
• Wolf Creek relies on a sole supplier for nuclear fuel assembly fabrication; the supplier has been in Chapter 11 reorganization proceedings.
• Single vendor selected to supply power island equipment for new natural gas plants.
• Entered into certain equipment purchases ahead of regulatory approval to meet anticipated project timelines, with potential significant cancellation penalties under equipment purchase orders and construction contracts if projects are cancelled.
• Labor agreements expire at varying times from 2026 through 2028; workforce represented by five local unions of the IBEW and one local union of the UGSOA.2026 through 2028