Evergy (EVRG) 24 Feb 232022 Q4 Earnings call transcript

Thank you for standing by, and welcome to Evergy’s fourth quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during this session, you will need to press star-one-one on your telephone.

I would now like to hand the call over to Peter Flynn, Director of Investor Relations. ahead. go Please

and quarter Latif, everyone. to Welcome Thank earnings good conference fourth XXXX call. Evergy’s you morning

Our webcast slides our and supplemental financial information website investors.evergy.com. Investor are at Relations available on

disclosures information. Today’s include include of additional They non-GAAP differ the cause our a Slide materially in could some our financial that information results X list discussion on of SEC forward-looking measures. also and future will factors from contain filings expectations. the to our

Executive as management cover Other XXXX quarter Chief and are Kirk Financial legislative our the David our and with upcoming upcoming Campbell, Executive plan. our results, Joining President Kirk are and outlook fourth retail regulatory integrated of portion discuss us for question and call. on Vice during and Andrews, today’s call Officer. members the year President available David highlights, and XXXX. Officer, and will Chief as resource and answer will updates, be cover of will full financial us well sales provide trends,

now the to over turn call David. will I

LVII. Thanks everyone. their remiss not did victory I Chiefs recognition I’d Super Kansas with Pete the in Bowl morning if start of and be the good and City

definitely For behold. is never to football add Chiefs been fans list. it quite Arrowhead who your Stadium, to to have Kingdom something

honored I’ll and I’ll strategic proud objectives our advance by begin reliability worked thanking sustainability. Slide the X, I’m year to start the tirelessly of on lead and our throughout Evergy employees who and to affordability, team.

share of discuss detail. higher results compared a strong the $X.XX to am adjusted top the of enter guidance per in of share $X.XX our will and end our the of $X.XX We reflect had in execution solid delivered another results, to objectives. $X.XX range. than earnings more These results came of drivers XXXX in we XXXX our year with per XXXX results I share share Kirk year. per per to pleased range relative to XXXX. respect that report another With $X.XX We to

November further improve completed we two modernize Last year, cumulative rate equipment. delivering we XXXX. and executed We our progress $X.X investing at back our continued for XXXX, and West, rate customers. resiliency, the of rate for affordability our regional in peers on reached and significant issues the as Missouri inflation economic These increasing in first hard I’d to period. cases to key replace O&M since customers rate savings like cases X.X% the and the below regional increases limited billion Metro both reliability staff regulatory our and our our aging grid five-year underscore Missouri the merger plan of to XXXX, maintaining capital to settlements we’ve of recognize competitiveness. Through work since our partial our infrastructure prevailing over to on in rate increase our rate well

at satisfaction the Slide in survey large in fifth climbed satisfaction, XX the profiles XXXX. made out significant by utility improvement we’ve forefront of in remains JD X customers. XXXX, XX that utilities strategy. category, Power’s in annual as customer spots midwest at companies of Since JD Power’s of our measured Customer coming we’ve

Promoting related company. success by employee over highlights core safety going safely focusing our declined progress and since have a as every are OSHA on to X made of a our day Safety of cases and events. DART the limiting in Slide culture every and considerable list paramount we’ve tops recordables safety XX% values, XXXX. home Both

XXXX case rate in X% and stay importance XXXX Kansas long but to jurisdiction of recognize five-year EPS reflecting targets, deliver of our adjusted and X% of remain introduce part off lag consistent to in we growth out we to and our relative adjusted of today. target know reaffirming XXXX ability that annual the Slide we falls per $X.XX the of EPS On per XXXX share. to our merger, as We regulatory and GAAP guidance share are our the we $X.XX term execution short X, to that midpoint through confident our commitment a baseline, the

Moving to have plan X, capital our our extended on updated we forecast Slide through XXXX. five-year and

equipment targeted Our Nearly represents XXXX and our or towards investment XXXX, million to projects XX% further improve five as we technologies, which distribution our reliability plan investment from hallmark in grid gains XXXX and continue which been over resiliency of also grid forecast, has modernize $XXX years. relative to new serving enhance smart and five-year aging last our totals strategy in XXXX customers, X%. to a enable of to billion $XX.X By to efficiency planned a we’ll increase investing is transmission the replacing customers. Evergy’s our for our

savings is reduction driving XXXX, through Slide target in held relative million XXXX. cumulative inflation XX% XX progress profiles savings. remain on adjusted we our additional since to laser-focused XX%. work or in $XXX O&M yet and not XXXX, our O&M an historically in we high The in cost Despite representing XXXX, adjusted of done flat

promised the about Evergy and that formed exceeding a that say hard the this of the organization team in which, savings end. part customers reduction of work X.X% part enough the retirements fall course the of I retirement As of an XXXX in year delivering attrition, effort, the the by size in as voluntary were our company combined in for merger with resulted and implemented program against ordinary company. the of can’t

on and available regional the As prevailing This XX, mind the stakeholders, plan inflation through have the same of over favorably that’s for competitiveness in are of our time exactly November Advancing we peer past our frame. shown priorities to our Evergy and improving of runs XXXX. many the XXXX and rate from states rate accomplished term years. what and latest limit been which able are front EIA on compares long five over cumulative to regional increases has Slide data rate based since to X.X% the

requesting Central and completion provide rate regulatory past our over to passing Kansas and a merger Metro straightforward, We customers. on will at return rate rate and forward achieve Kansas working five be I’ll the years mid-April, to in legislative grid Evergy on update and for reviews of we’ll Moving believe regulators first to of with communities. investments relatively outcome our beginning recovery our achieved our infrastructure the the our cost filings customers priorities, We and these since XX, and Kansas file we’ve our stakeholders benefits case XXXX. on Kansas. and constructive In in cases modernization to the Slide an savings look with

we relative saw which session and the supporting environment to last PISA, anticipate the further state. In regulatory amendment Missouri the quieter legislative this year, in extension year, of a constructive

with secure in by plan, work the Persimmon the approval solution Persimmon of believe we’ll lowest of Uri operating On necessary an incurred docket have firmly our the regulators X. at and as Winter certificate to collaboratively post-hearing X acquisition dockets to Creek costs continue doing Missouri for on open front, with well briefs preferred necessity West convenience regulatory Persimmon with cost and the Creek order of We requested our West. the to is April are customers Missouri Storm IRP as an Initial for securitization the of Wind Creek approvals. we consistent Farm, March serve

our the Public approve the extraordinary Service believe from in costs The of Missouri April, was Commission’s due appealed Missouri Appeals decision appeal by to by early by of Public the to Winter the approval We initial Storm to request OPC’s days following Office January. Court Commission’s securitize request the of briefs well Uri supported record. Counsel early are our XX is date.

until financing to appeal we complete when cannot plays approval ultimately incurred we securitization carrying our issue out, costs be incremental the debt. While the will recovered prior

Slide expected filing plan on of updates and reference our is that cover both XX. more the Missouri, as the which The June in resource annual last agenda turn item you I’ll Kansas I’ll regulatory integrated to

our is around planning longer continue well and process IRP to deliver filings certainty impacts of higher by Act will term as Reduction abundant our IRA energy customers savings for we planning. tax renewables renewable on our The resource generation the beneficial in The region cost underway credits the to assess tap the our provides potential the Inflation enhance energy. ability to our replacing

IRA’s Creek plan of We years Wolf will production Creek. our expect accrue customers which prices to nuclear our for tax nuclear benefits in the to credit, the eligible be for with Wolf low realized

IRA southwest to the these annual and costs, updated In we’ll power pool be in tailwinds, commodity construction addition the projections, capacity requirements incorporating update. into higher

to excited to additional our customers. integrated resource advance deliver benefits are We to our plans

affordability, features XX, a the covers page I’ll core which to side relentless left remarks tenets strategy sustainability our value Slide reliability of of with conclude The and summarizes proposition. what Evergy my the through focus distinctive Evergy, advance the believe business geographic by and supported customers, mix financial operational particularly and excellence. right-hand our investments, attractive collaboration, features on sustainable our The location. are stakeholder for given and and we

the company excited sustained about We opportunities our the performance are committed effort to objectives. high against deliver are our required to and for we

I’ll now over the turn Kirk. call to

the start XX. good results on the for David, quarter everyone. Thanks morning I’ll Slide with

earnings $XX.X quarter $X.XX XXXX. million fourth the the Evergy or or delivered per $XX.X compared fourth of in share, share XXXX, For per quarter of of adjusted $X.XX to million

margins for were higher a fourth higher slide, by transmission combination in in to adjusted an interest in AFUDC EPS offset a from both resulting the by $X.XX XXXX; to the first, increase of our year-over-year drivers the equity. lower investments fourth higher degree offset higher the decrease following: lower XXXX drove from As O&M on partially the and this of $X.XX of days increase; demand by quarter and infrastructure in $X.XX compared increase versus enhance transmission and drove expense $X.XX shown These driven partially EPS $X.XX increase expense quarter. positive was the an drove of heating ongoing net quarter and quarter D&A our volumes a in fourth EPS

EPS to Income prior of other increased credits, of $X.XX drove higher related credits tax year quarter. the and including use tax and compared the wind in tax the of the items, timing

merger back the requiring half above our other partially expired Kansas was and margin us These and Kansas into to X.X%, excess of summer our one which refund earnings authorized through Finally, ROE drove drove positive the proceeds Warmer both increase. at commitments of current consist offset Metro that weather $X.XX XXXX. fall were by customers. to of other higher $X.XX program, COLI and net a from of in negative items which our sharing earned the year-over-year items, which

XX. to you’ll turn find results, I’ll next on which year-to-date Slide

as were versus $XXX.X contributed share XXXX. adjusted the For to versus well higher in Relative left an XXXX. EPS favorability weather Weather-normalized lower $X.XX the from following: full was normal, to our year $XXX.X Again demand year-over-year O&M moving an versus year higher per of margins from higher right, share, XXXX. adjusted full which investment drove $X.XX include per million as earnings $X.XX $X.XX increase. driving estimated weather ’XX transmission compares million $X.XX XXXX. drove or and drove XXXX, or XXXX, X.X% to increase, volumes increased Higher $X.XX EPS a drivers than $X.XX in

positive $X.XX expense accounting expense interest offset AFUDC decrease and These D&A $X.XX adjusted partially drivers $X.XX by of the equity, and of lower EPS. increased higher interest with in were for of $X.XX

items earlier tax net Kansas mentioned from $X.XX ERSP Finally, expiry $X.XX remarks. earnings the a of I other at items credits, other drove $X.XX favorability, of or from the of which program, were my by quarter consisting $X.XX of Metro, credits, partially primarily offset fourth from and $X.XX which in merger sharing bill

a XX, recent Turning provide brief our on to update I’ll trends. sales Slide

increased see you’ll increase X.X% growth. On commercial a the slide, usage left-hand by the that in and healthy sales supported XXXX, residential by total strong driven industrial and side in retail primarily of

by full and weather, the Looking The increase These were and sales bolstered by of in to impact the to return year. of chemical continued after X.X% sectors. the refining for demand growth X.X% strong was results commercial driven a demand slide, industrial the from right-hand retail for post-COVID. increased the weather-normalized normal adjusting estimated side oil customer

of market, X.X% rates Underlying as strong remain and customers respectively average below growth the highlighted Kansas unemployment of commercial national These City Kansas a area continued year-end. the of residential by the X.X%. is in and X.X% Metro labor and

a is recovery pandemic well positive to positioned continued in extend we XXXX, following Overall economy trend. and that our saw the

a I’ll XX. As EPS an we adjusting X.X% part expect find our result, as XXXX increase on weather, which in which approximate of you’ll for in guidance XXXX, weather-normalized discuss Slide XX-year demand

total side left and slide an $X.XX, Kansas the that under beginning demand, $X.XX estimated from increase. earnings XXXX largely demand. sharing or decrease just offset in $X.XX of in Metro impact of X% from removing increase XXXX partially demand. we at impact $X.XX $X.XX by ERSP expect net program, the of ’XX on in a decline in Starting of or weather Removing impact an in a $X.XX weather-driven the results decrease weather-normalized This adjusted with the that is

million pre-tax excellence. cost is we EPS increase EPS. improve Creek and as O&M We Higher of approximate of reduction affordability as continue execute transmission expected XXXX $X.XX to continue on operational to a to on our focus an acquisition as The $XX our to expect in deliver of our transmission and commitment margins programs are to we infrastructure. part to $X.XX expected Wind Farm in make add Persimmon investments pending $X.XX drive to savings

Uri positive drivers to higher as plan, in following: at we $X.XX in a of the the invest These offset by which to increased of higher infrastructure the contract Kansas offset interest combination balances $X.XX be costs proceeds. rates, $X.XX execute items, in driven partially expense debt and of of wholesale are by and partially higher COLI our due D&A other and from year-over-year earnings expected true-up by continue of a increased expiry capital carrying XXXX to expected one-time were of primarily lower

next on our to execution. and in Turning continuing of results to focus ongoing a record Slide XXXX track consistent build reflect XX, our strong

returning with on to target progress earnings growth reaffirming mentioned confident our committed annual in trajectory, capital and as XX% payout XXXX, we to compound from XXXX X% remain of to earlier, we’re dividend ratio X% with we as line that that our David target to term remain that and rate XX%. to shareholders continue As we long achieving in growth, dividend also EPS path, to growth

capex XXXX to XXXX from five-year $XX.X XXXX plan totals of XXXX. implies growth from approximately to rate-based and updated X% billion Our

utility We’ve planned of find you including we the appendix in by which breakdown will some expenditures included a hope disclosures helpful. additional today’s presentation, category of by and

objective In term. on us our and long addition achieve also to reliability affordability, sustainability financial the to this targets, investment key advance allowing to plan executing over advances these

on XXXX strong reviewing I’ll objectives positive remain the the conclude from our years, by two some Building you momentum or meeting to turn on our as over we specific past focused Slide XX. year Central merger the working our results rate constructive in XXXX. since to in regulators a first stakeholders collaboratively This and outcome and targets we’ll XXXX. our Metro in financial be cases Kansas with achieve Kansas exceeding

O&M the identified needs As our Consistent look of we’ve a Kansas achieving Creek closing in five with achieved will our integrated which resource XXX the savings years. to clean, Farm is customers the PISA-eligible forward with plan, low-cost we of providing we customers are of key factor Wind acquisition over this year, serve our of focused goal Persimmon megawatt energy. affordability, benefits last significant with the on and our Missouri West

this have of XXXX new sourcing begin renewables as investment achieve focused this well our will RFP the to year XXXX objectives. we objectives, as XXXX and on we launched to our recently a agreements look later renewables balance complete process Finally, executing and those to

the plans resource our benefits June, time of We Reduction first Inflation in in the update the both for incorporate will will which integrated also states Act.

to your questions. be With happy that, we’ll take

instructions] [Operator

Research. Our Sullivan from of Wolfe comes the of first question Michael line

Michael. Your question please,

morning. Hey good everyone,

Good morning.

wanted the with high Hey Can that drivers you to today? from of X% start the talk some X% CAGR back to guidance XXXX, track gave just at you XXXX. David. maybe that on through the reaffirmation level of the a to get just Maybe

impacts but X% year, in particular. back is we short were Kansas main my we’re in biggest some You lag had be bet, noted can in cite the our that in headwinds as reaffirming range, XXXX peak two regulatory thanks of X% acknowledge, in We we’re a that Michael. but midpoint, and Central remarks, we to driver--I’d and the driver I the factors, belief which

it’s on we’re end, helps us advance five Kansas case, effect as jurisdiction into at our track. investments back go and rate and elements that that you some help over know, so case will since year this factor of there five that and rate years get last on we the the under-earning lag the in past that we’ve address As the been our are year made rates having that’s years, many biggest

in year We’re we that We sort and offset it. we’re we’ve this taking the to peak of pleased with steps ’XX, were overcome lag in the good had lag able been ’XX to results, and year, some absolutely we gone some for from and reaffirming but that impacts ’XX. our commitment year, interest our detail didn’t we have through rate are headwinds model and ’XX in fully Missouri this and so offset we to

factor cost second is and ongoing The well the that’s known, of advancement savings.

XXXX, respect on this going is how of be opportunities have to rate two impact cumulative with significant case, we’re ongoing track levers savings We’re cost stay X% we earnings growth. delivering ahead between to X% annual savings us since in going of primarily to to and but those our the

Okay, mentioned that, helpful. the regulatory that’s you Maybe very just on lag.

side, Was this maybe alluded the that year, just filing? adjusted remarks, was sharing is weather, too On think fact give Metro at feel I this for that take to the I a into rate in it for was hit the Metro that where us you but the this or weather? under-earning mostly

biggest Yes, has--actually the of it but to the a much jurisdiction. prices partly it’s relates Central replacement relative of more level in weather level Metro factor and and across doing in been the and XXXX, Metro it’s a lot territory. investment. a and we’ve The investment, got higher of nature urban dense the obviously bigger broader reflects has much impacts Kansas systematic system is our service

impacts authorized we’re Central of it’s on normalized Central, Even in earnings to we’re a return jurisdiction. earning a on sharing the particular so Metro, but jurisdictions. weather, two impact just bigger weather in in results, a those short the overall, it different well XXXX in so reflection Metro lot bigger characteristics our also but in close a of of is was

where give at from legislature, and maybe go the and commissions can them expect you me, looking the just to in things things Kansas like terms of such? where a of pending sense Okay, are Then you some of last us great. bills at one just appointed at

are advance, election robust don’t going flight so that will think want that as discussion don’t session to continue of be with broad is has less sense respect around potential bills support don’t passed expectation committee approach, to discussion bills. we I will policy utility so get in pretty been--well, around that to but out the of know, think much we that there so multiple there active our a there was The commissioners, into and be detail, to that that. expectation--you Sure, one in Kansas, too probably process but good makes that’s has

There have of charge first benefit to transmission is to a transmission has predictability, our process. a of related right advanced customers regulatory been delivery and bills for advanced that really relating of which in refusal we is It is terms to consistency so think bill blessed committee full oversight, and to project called that been discussions There ongoing that, it discussion. approach could of it it’d passed end does go full was--the the out was then been senate. it going house, has course term voted up on the to by around if by over process not of but the since--in the subject speaker, and house

working going ongoing if we there constructively. think stakeholders and something pass be but year, we’re discussions will ultimately unclear those discussions closely are think will this I Kansas, with in

Great, the thanks for all color.

thank bet, Michael. you You

Thank you.

go next ahead, Shahriar. Guggenheim. comes question Shahriar the of of Please Pourreza Our from line

Hey, guys. morning good

Shahriar. Morning

should with about these got, Central got last for the you’ve filed which and the rate be Kansas cases the balance case will for O&M Just at since and I here I in fuel to increases April takes and now think the Kansas, guess, next targets the years, holistic recover starting two update, in your merger. on give-back play? all puts between you’ve we guess How some

that are not. will Shahriar, It’s a because number will of elements go elements number a through a great case, question, of the rate there that

most addressed through Uri modest a that For process, That going our well years. relative example, amount regulatory over we’ll pretty fuel costs an that’s to the gas rate million two Uri you amount not been in referenced cost - approved jurisdictions recovery the still because total, in to it’s already not region KanCentral insulated about that’s heavy, $XXX was from in cases. so has though as be to recover. recover

our The course since investments case, distribution, rate the We at out so case. various FERC as will that will last KanCentral part part rate and rate commission estimates what the general we’ve reviewed rate not focus the made be. cases generation, it be workshops transmission, our will our O&M case, with be that the on was plant, will but in savings of put of the will of impacts be

[indiscernible] line targeting described of we’re was rate a general our through annual XXXX five-year our--in and rate that impacts through of Now, inflation. always or then--you XXXX were but below at December, because in know, increases we’re it estimates we’ve plan, the rate with

reflecting five the years a last investments be it’s our but frame. going that well will time over it’s been cumulative so cumulative understand stakeholder that rate increase, our Now, since to be case, that

well cost We’ve as it’s in in always it’s - be Given optimistic will a lot savings elements the XXXX, be was ROE those first that of so we’ve XXXX the be of describe been workshops discussion delivered, the we pretty still that. I and again one programs five of straightforward, will they lot it’s [indiscernible]. capital through around December there we’ll then able of had May mentioned, very so. years, of about in ’XX, lively our and focused cost last They we’re categories think we reviewing do in and going like the and surprises and our year, plans but on detail, are, high be investments, because not cases our reduction usual inflation, course a to inflation to the as our be broadly plans how given able under--well obviously investment to high under it in

covers that Hopefully Shahriar. the question,

thank you that. it for That’s does, it does. No, helpful,

about or capex growth The to ’XX would Is we squeeze you the and here. want side the to the drivers differently, implied see rate is guide. guess prior latest I around even I’m put X% of on X% capex current push on look directionally, I more just guide of the out base update? more there growth. ’XX, to in the O&M gets the tweak your just that X% you question the profile are thinking beyond to the ahead? IRP Kansas EPS good to slightly caller’s case to as the It’s roll and dependent what but

It’s a related know, question, got introducing know, based great balance guidance support going that, sheet our we’re time growth, Shahriar, ongoing and our beyond rate and strong course really you not the to but are, as you today, savings. to XXXX we’ve and drivers as to be over or we’re how we investments, of fund a cost

through Now seeking certainly in function to step We terrific we’ve we those gains to consistent employees a term, have out drive efficiency annual our important. the introduced, consistently, we’ve really do since and good got to cost laid The in what but our shown job productivity was driving are first over a be that of targets with we’ve costs system the think STP long have XXXX. changes are kind going that business. going sustainable not and be

be base O&M how it you savings. fund noted, we going to growth, it’s As and cost the rate

our We’re to some have with plans this impacts going our going that’s renewables. to update respect year, IRP to on

needs utilities, a change start feel update, drivers how you As we’ve decade, in so higher. gotten latter base as are and look have because impacts those because but is it, of forward electrification getting demand the from of lot we strong, the as growth, we increase through power so an tighter once service well capacity reserve rate we’ll and drivers well of a cases. and our calculated mentioned, comes parts of seeing margins as fund rate of like the growth, providing but, Demand about We our of lot down are I pool a in southwest other O&M. moving territory the it as good been IRP demand update fundamental to reserve margin trends part how also the the to get incremental requirements, in both

growth I paraphrase about together, you you’re guess--not growth that put feel rate but time? between to and that saying, what in tightening all delta base up EPS okay

in range those territory and we set-up the in and XXXX those--we’re XX%, look drivers, term beyond long to through our details XXXX, when we we drivers and like know, We know--you the we to the confident forward service territory share. in have our our and certainly going like through the

it. Okay, I Thanks. great. Thank appreciate you guys,

Shahriar. Thanks

Thank you.

of next line comes Nicholas Campanella question from Suisse. Credit of Our the

question please, Nicholas. Your

Hey, Thanks today. good questions morning taking my everyone. for

to CAGR X% could and wanted on you’re opportunity rate out Just you the of IRP here. ’XX, of focus about think a up the increase what’s you the that does of base to to potentially because I set that understand just IRP now X% follow or fact front the showing a to magnitude extend the When absolutely it it? thanks. trying come, in

I feel Nicholas. like I’m question. your parents, calling you Nick, that’s great a

for shifted of terms what that’s we’ve assumption RFPs what most one-third assumption two-thirds competitive matter with of owned benefits but sort IRP. forward regarding we going to no happens to slight we and customers. the beneficial our in that out balance, in our There’s of the for a expectations that in right new in something a play a shift PPAs capex expectations our Kansas and offers very heavy plans. of it’s PPA, think so in now what’s PPAs for element of run renewables. our process. in mix a have most been generation is got the We customers be That’s IRP and in towards actual update weighting an include the and The We’ve in to renewables what’s will

IRA cost IRP, place customers coal for do will clearly the be relate in lot effective I last new know there’s a have to think a have of fuel of the that We’ve the customers variable Nick, IRP cost factors, cost opportunities That which traditional from only is not they’re some that. relative to costs, replacing modeled by those to--you benefits significant in in are and in think time. the know, going aids attractive we for ability Those sizeable didn’t we renewables, period are we high renewables but going provided the year. with resources. could generation and drive high energy more in that now to lower and that of to--I fossil IRP region, got the relative drive pretty cost our reflect for

generally be we are driven wildcard bottlenecks and personal facing cost is down time construction the those that cycles may are in the helps driving view is we’ve lifted renewables, be construction for constraints over are what that to higher that and but the robustly, some My do--those for costs. over Now, time. still supply seen cost going responds

but I variable going still to from we the there given fuel to energy the high going know, plays for math how incremental and that think tailwinds produce It are more math to see trending. be we’ll that construction the we a high are we’ll out. relatively of at IRA and and where benefit-you they opportunities costs be they’re the that may opportunities have compelling is once amount costs, see have are renewables, where

be The gas capacity, potentially piece with towards more we’re capacity growth like a incremental Meta coming towards tighter, peakers [indiscernible] capacity, weighted solar we’re Panasonic to going sure--and too, that in, capacity seeing you there’s heavily may other with more growth and some with dynamic that in are resource help to requirements. and could is going weighted is or make needs requirements see drive what also

do IRP. could in tailwinds question, think a answer That’s some sense. but hopefully to your there Net-net, be makes that long the I

but just the plan trying your not now intention the fund that. past equity to ’XX understand, on financing wondering this to capex frame, guess just it to that you have for Okay, to is I’m that. any out do plan, thanks I just how ’XX, time

X% as X% Nick, through is plan. new number no of a that Kirk. equity Hey rate in our through particular growth XXXX, to there Certainly times it’s reiterated we’ve

of earlier, As balance as XXXX, out came you’ll a sheet. see, we strong said David with

end We’re the a financing in equity operating we’re of those of ahead targets, XXXX. got free net to we’ve stable until of translate expect two so taxpayer that our flow, to the gives robust because pretty going a will not case through current which be expect debt, the balance efficiently we line. sheet we very taxpayer income supplement Certainly to objectives. That we’re cash be so decade, the with balance don’t cash good us flows, a strong towards keep cash into to to look help continue

obviously successfully while sheet maintain our to and at the long that We’ll objectives. can, the capital obviously rate robustly as those we objective balance term IRP but the impact goal look growth to time maintaining our plan, about the on as at balance equity is issuing that expenditure being same prudent means and

sheets flows out we’ll fortunately combination we those robust focus continue of and foundation those about come balance and XXXX, the where of it. the cash good feel on are to we’ve with But

move and shield Kansas we we as but through and rate a flow the us for specifics As tax the more in get the cash plans robust again financing our update long ’XX. term, beyond forward, case have even tailwind IRP, we’ll about is

Appreciate that color, any thanks Nicholas take everyone. Nick I’ll or day.

Thanks Nick.

Thank you.

Chopra next Evercore. line ahead, of go Our Please the question Durgesh. Durgesh comes from of

Hey, good morning questions. Thanks team. my for taking

Morning.

Good morning David.

you’ve set that opportunity what perhaps term. on just opportunity then all and hit of You’ve for PPA questions. Maybe the my XXXX the longer discussed and past in there the is other answered

in to finish over weren’t to about bring case. engagements that, a despite Kirk. line as focus talked and with of number were continues of particularly to we Yes, disappointed That Durgesh, on I counterparties. one be various XXXX. sure those the we we it’s the Continuing able

to a counterparties, provided our little renewable that’s us are PPA in so the think as given that. that case, marketplace, I for be that’s involved there we process, continuing As a and IRA, be I’m by to of clarity number the bit foundation of better portfolios has the to been include some negotiating with often in portfolios, case the there sure have out continue renewable the forward, continues Those you’re been be. well going aware,

and of a get get as It’s as the certainly that done rate, have but that plan, we with think our expenditure opportunities said balance maintain going sales our and least that well it lot we be I done, as renewable but markets capacity not want to as would we as of I on to before, equity probably doing major sheet one can to do that opportunities I we long those the at don’t to in don’t I we’d additive. capital driver I growth done stay get we’re the of those maintain of one expect strength done. of out moving I and market if to in abundant forward, get of are there because, question that think previously, a and back proof in XXXX. certainly concept are it’s be certainly of possible a think participate right out one the the - focused it, the as now, expect Nick’s to

be X,XXX to than opportunity certainly and me, updates but that a of definitive megawatts--or More can’t X,XXX growing come, set with we’ve more excuse to PPA. at an got look backlog megawatts that,

Got it, you. thank

you return out that Just or to recovery get cases gigawatts’ worth to how of through that or opportunities, actually is does be approvals or as the through--do those work? opportunity, X have buy rate clear, go process that on you PPA the

case but case, into we’d certain of do prosecuting more Especially the cases. we base. simple replace that rate have We a to is would, neutral, base rate beneficial predetermination-type of Kansas, our or a through that if yes, pass-through to both obviously in that’s rate ultimately existing we’d investment prudency can yes, what look with and less pursue process, that in and in a buy-in, a PPA pursue the not to to

appreciate Got I it. Kirk. so much, Thanks it,

bet. You

Thank you.

line Our next of from Seaport. comes question Storozynski the of Angie

please, Angie. Your question

you. Thank

Just a really question. quick

case I’m upcoming beyond that interest this expense, I forward, rate the it of gets just rate look up wondering--you trued have in of so if a it cycle? know, I’m would assuming $X.XX Kansas You and of in persist how roughly some much drag cases,

was a a way ’XX think of the ’XX of back year-over-year little that’s year, a think rates better two and a ’XX, elegant year-over-year. lack and bit full half obviously increasing year the saw rates, We a into obviously you of way the about more effect I to increase, of in tale more for going know, obviously That’s it. that, putting

Kansas interest we items You you sensitivity rate some exposure we rate. showed of and obviously you expect those a in are Metro, that is especially of rate control utility, that those number do so interest those some also see half short bonds is portion of there that, we’d of - we that have pollution would a correct before, the term Central, interest of our at of least at better there, there’s look--some at at

that the Now, up higher gets the which our at of work some we and in backwardation given that taken a to are from and we’ll process short lot of obviously AFUDC rates, mechanism, move as term plant our to curve, that in of construction look term service, look but out.

case, of the I trued do if would timed--certainly in of in context we in get will we rate probably Kansas, will the will expect XXXX, place of so that up the that a lot at that our end do that day. take

Meaning the be for mean, shouldn’t right? there year-over-year actually a year-over-year for math right, that I benefit be drag--so any, drag, ’XX, the should so

Yes.

Okay.

the don’t rates about and better we’ve I thinking the into over not--we yet year, partial moving think current going a rates increasing time, from day, to so year rate now at in just another of the function increase increasing the that it’s at really forward regard, about see ’XX rolled in forward. just step way current to think we’re a exposure rather that from would of is so a end I than debt and kind

I have. all Thank you. that’s Awesome,

Thank you.

Paul comes question go Please Glenrock the next line Our Patterson of from of Associates. Paul. ahead,

guys. morning Good

Paul. Morning

flavor quantification could if I and some that the lag. should if to of what might rate if ratepayers sort or we there immediately give for think wondering be was that? and about positive Creek, On How could a you Wolf goes the IRA be potential us

rules it’s out around it. Paul, be as the going to fascinating come

is customers The impact will first not it an it that impact. have an flow thing in that will our eligibility note will so start the but to is earnings XXXX, directly to

anything customer think and important as critically thing. helps cost for to rate I about a a good that with Regional are tangible is excited that there’s us, really benefit so competitiveness respect Now, well. affordability we’re

and ’XX PTC, full it up megawatt a in thresholds the eligibility the is, In $XX are it’s ’XX, sense more in probably in the yearly time, be to Presumably back year, monthly were and that a to you for to below but the go-forward may the but, X,XXX ’XX benefit a Creek $XX be a prices, But could hour Wolf ’XX real terms IRA of net-net since - all it a the rules the in interesting realized realized be years, look markets seen. you for be the prices customers. may if and mechanism, hour makes given all wouldn’t assessed years on than high sizeable commodity the be on if ’XX cast a potential couple end on so operate. for at out basis, that pricing it prices, laid may the what back true the and have this how at been wouldn’t a is it of see rather day-ahead back it’s megawatt megawatt a that nuclear be based but be assessed on went for unit, will is it yet based depending at that

through in ’XX. as out not come clause, we interesting will rules driver. be it important that’s believe very is fuel and the starts see But But but to the to flow earnings which an directly the mechanism, going again it

Great, then argument there a with guys you does strong pretty know. you possibility Is for staff seem as respect which to made any settlement? Persimmon, be--it’s a guys to a for, case, [indiscernible]

discussions the had this week in do obviously Well, we’ve I we it’s and hearings in hands been in point. of think hearings, at staff so the advance this with commission’s

customers I overall for option. well-placed a and we’ve we’re costs, think great best approval, We’re towards option it. in terms got constructively adding It’s a for we benefits think it the mentioned, so work in is of compelling drives view, our clearly that always--as always our arguments seeing we the

be in the to it’d be the resolves. it’s issue it’s commission’s commission given that likely we can an but great, settle, If hands

whatever, how law or Supreme may great. Okay, guys are the interact Court the sure be Fifth but law you I’m should with bill, there that Then I’m about appealed ruling, the about Fifth with familiar with court will not to that with versus I how ruling? sure we guess the the should NextEra. and this about anything that, we is it or think law different wondering, and how may Circuit to I’m Circuit ROFR dealing or think Texas ruling, respect

of think them, it one We the don’t in in the actually was Texas narrow ROFR some may reflecting time place have unique have ROFRs the it at so was we’ll Texas There know, Texas states, unique so across I ROFRs not. do question. to you market. but the - law time, elements have follow it in of those states features, good the elements Kansas step in in Missouri, that a at place and passed, the go, are the neighbors resilient. some those so It’s right law, the how of they’ve around of them, I multiple in place. and cases may been to law. Texas are first markets and most refusals our jurisdictions and in in place be in unique stood the but a Texas as in dozens track, U.S., of We’ll time place SPP been have they’ve the beneficial of Most test in has remain that obviously

proceedings, any me and seem but small FERC we to number should me? some to very of them, there, proceedings they’re or guess, over on How a head think you. you the exposure how rather finally feel there not just number formulas degree transmission, have if you potential in about terms technical I follow those just - my they Then there frankly, and a of are cumulatively and there, Okay. about of what

proceedings, we--our probably impact of the the to do, so FERC I couple that frame guidance of and framework, I ruled think resolved on our way a the regulatory we’ve view it. one by was the overall is last easiest and reflects go-forward year,

pending, you complicated, formula had that’s we obviously that transmission and formula was formula year. to when was because the a review, was to and last tariff get is but the resolved transmission it to the and that in that the a level, delivery so that was to charge, rates but related one follow FERC complicated probably it of tariff the related Some most under

Our impacts guidance discussed that the we’ve case. of reflects forward that

plan. I their ones. that we--our a are lot of is way reflected easiest the technical of in guess impact is it There our view forward to describe

have much thanks Okay, great one. and so a

Thank you you, too.

you. Thank

of comes question Khan Our Verition. Please from ahead, next go the line Ashar. of Ashar

David. Hi

Is that right, bridge and this another if showing I $X.XX, $X.XX have benefit you two the in chart, XXXX, if in but just or Missouri so if an million came of lower course, my of have sum other fair half may, now then I’m I we is right, factor will can be, $XXX should the have going said them because some I’m next was all are for is to $X.XX. of I you so Kansas another year, it that and and savings to or decrease next years, up, going XXXX? trying see earnings between left transmission O&M been and answered, $X.XX I you’re of to $X.XX, if questions think in nearly and the just--I another XXXX, case year, that’s about impact the if case

next shares, I’ll you the comment the general much year. million piece, we’ve XXX can savings but got you about ask O&M O&M Kirk do in got how to the--we’ve can so in calculate on

$XX $XX that it’d come so it’s would ’XX, million through range, be million me. Kirk think and I to correct remainder can

XXXX Missouri so we every-other-year plans, think correct, know, haven’t would a expect do cases for frame, a I got that sense would our imply--you the that the We good rate in finalized case, so time drivers. you you’ve are mean but rate

you’d Kirk, add? anything

O&M was XXX, We’ve gives a period that of go in time, know, and you’re $XX there, our think the clarify million once puts our means when non-fuel through I infer--you us--I can that slides, of outside that target at what that to prospectively get right that so from over the between--you round front, $X.XX you to that in that’s just that. of $XX you million, to I of roughly On billion. clarify the reduction you O&M savings, target ’XX, XXXX, mentioned with $X.XX ’XX, you out so think that can came to, to ’XX - going is ’XX you’re ’XX $XX if about equates I right, even through disclosures, million about know, you’re just out and to about billion I $X.XX incorporate put XXXX of O&M that so ’XX, that we

that I on a can you the Okay. Is I you based a XXXX don’t [indiscernible], that meeting from want run happen but year is CAGR front end been just or a because and Then XXXX exercise? up, I have right revise, objectives is to time. because now which will this right, now something your will if know when do

from year Yes, it’s likely be now, to Ashar. a

to a informative rate We’re Kansas plan and get celebration we so that year with going a the rate to which most be the of I likely that going investors. is the think to think have QX pretty about Again, so I rate the is be from case, going another of resource we’ll to be forward update lot case time most think to on are to frame now, in case, Chiefs Kansas that’s but Super Bowl. the integrated call I hope for eyes straightforward, open going a

for nice hoping Okay, Have much, we’re of a Thank so you. weekend. that kind that’s correct, you so too.

Thanks Ashar.

would turn remarks. Thank Campbell like Sir? now closing to the conference for I David to back you.

Latif. thanks right, All

in day. great or Evergy. call your reading for later, the your morning on thank thank time everyone for interest Have you For and this you a

Thank concludes participating. call. conference today’s you This for

disconnect. now may You