Evergy, Inc. (EVRG): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la transformation de l'énergie, Evergy, Inc. (EVRG) se situe à une intersection critique de l'innovation, de la réglementation et de la durabilité. Cette analyse complète du pilon dévoile les défis et les opportunités à multiples facettes auxquelles sont confrontés ce géant des services publics du Midwest, explorant comment les facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux remodèlent sa trajectoire stratégique. Des investissements en énergie renouvelable à la modernisation du réseau, Evergy navigue dans un écosystème complexe d'évolution des attentes, des perturbations technologiques et des paysages réglementaires qui définiront son succès et sa résilience futurs dans le secteur de l'énergie en évolution rapide.

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs politiques

Les réglementations du Kansas et de l'État du Missouri ont un impact sur les opérations des services publics

Evergy fonctionne dans les cadres réglementaires dans deux États principaux ayant des exigences législatives spécifiques:

État	Commission de réglementation	Budget de revue réglementaire annuelle
Kansas	Commission Kansas Corporation	1,2 million de dollars
Missouri	Commission de la fonction publique du Missouri	1,5 million de dollars

Discussions fédérales sur les politiques énergétiques

Les discussions actuelles de la politique de l'énergie fédérale impliquent d'importantes considérations d'investissement en énergies renouvelables:

• Valeur du crédit d'impôt de production (PTC): 25 $ / MWh pour les projets d'énergie éolienne
• Taux de crédit d'impôt sur l'investissement (ITC): 30% pour l'infrastructure d'énergie solaire
• Incitations potentielles sur l'énergie propre fédérale: 369 milliards de dollars à la loi sur la réduction de l'inflation

Soutien politique aux transitions d'énergie propre

Normes de portefeuille d'énergie renouvelable Dans les états cibles:

État	Cible d'énergie renouvelable	Date limite de conformité
Kansas	20% d'ici 2020	2020
Missouri	15% d'ici 2021	2021

Incertitude de la réglementation environnementale

Changements réglementaires potentiels ayant un impact sur les opérations d'Evergy:

• Cibles de réduction des émissions de carbone EPA: 40-52% d'ici 2030
• Coût de conformité estimé: 450 à 750 millions de dollars
• Mécanismes potentiels de tarification du carbone à l'étude

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs économiques

Fluctuant de la demande d'énergie due aux conditions économiques dans la région du Midwest

En 2023, Evergy a signalé des ventes électriques totales de 56 376 Gigawatthers dans ses territoires de service au Kansas et au Missouri. Les indicateurs économiques régionaux présentent des schémas de consommation d'énergie variés.

Indicateur économique	Valeur 2023	Changement d'une année à l'autre
Consommation d'énergie industrielle du Midwest	23 456 GWh	+2.3%
Demande d'énergie résidentielle	18 945 GWh	+1.7%
Utilisation d'énergie du secteur commercial	14 975 GWh	+1.5%

Investissement d'infrastructure influencé par la reprise économique et le financement fédéral

Evergy alloué 1,2 milliard de dollars Pour les investissements dans les infrastructures en 2023, avec des parties importantes soutenues par des programmes fédéraux de financement des infrastructures.

Catégorie d'investissement	2023 Investissement	Contribution de financement fédéral
Modernisation de la grille	456 millions de dollars	127 millions de dollars
Infrastructure d'énergie renouvelable	378 millions de dollars	89 millions de dollars
Mises à niveau de la ligne de transmission	366 millions de dollars	102 millions de dollars

Structures de taux d'électricité touchées par l'inflation et les coûts opérationnels

Tarifs d'électricité moyens pour les clients d'Evergy en 2023:

• Résidentiel: 12,45 cents par kWh
• Commercial: 10,23 cents par kWh
• Industriel: 7,89 cents par kWh

L'impact de l'inflation sur les coûts opérationnels a augmenté les taux d'électricité par 3.7% par rapport à l'année précédente.

Incitations économiques potentielles pour le développement des énergies renouvelables

Incitation aux énergies renouvelables	Valeur 2023	Impact projeté
Crédit d'impôt fédéral de production	26 $ par MWh	Soutient l'expansion de l'énergie éolienne
Crédit d'impôt sur l'investissement	30% des coûts du projet	Encourage les infrastructures solaires
Crédits d'énergie renouvelable au niveau de l'État	15 $ par MWh	Améliore la faisabilité du projet renouvelable

Le portefeuille d'énergies renouvelables d'Evergy a atteint 3 456 MW en 2023, représentant 42% de la capacité de production totale.

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs sociaux

Demande croissante des consommateurs de solutions d'énergie durable et propre

Selon l'US Energy Information Administration, la consommation d'énergie renouvelable au Kansas est passée à 24,8% en 2022, avec une énergie éolienne représentant 41,4% de la production d'électricité dans l'État.

Type d'énergie renouvelable	Pourcentage de génération	Taux de croissance (2021-2022)
Énergie éolienne	41.4%	3.2%
Énergie solaire	2.1%	12.5%

Chart démographique au Kansas et au Missouri affectant les modèles de consommation d'énergie

En 2022, la population du Kansas: 2 937 880; Population du Missouri: 6 154 913. Âge médian au Kansas: 36,8 ans; Missouri: 38,6 ans.

Segment démographique	Pourcentage du Kansas	Pourcentage du Missouri
Population urbaine	74.3%	70.1%
Population de moins de 25 ans	31.2%	29.8%

L'augmentation de la sensibilisation du public au changement climatique a un impact

Evergy a engagé 1,6 milliard de dollars dans les initiatives de réduction du carbone d'ici 2030, ciblant 70% de réduction des émissions de carbone par rapport aux niveaux de 2005.

Métrique de réduction du carbone	2005 BASELINE	Cible 2030
Émissions de carbone (millions de tonnes métriques)	22.3	6.7
Investissement dans l'énergie propre	0,5 milliard de dollars	1,6 milliard de dollars

Attentes communautaires pour la responsabilité sociale des entreprises et la gestion de l'environnement

Evergy a investi 25,4 millions de dollars dans les programmes communautaires et les initiatives environnementales en 2022.

Catégorie RSE	Montant d'investissement	Focus du programme
Initiatives environnementales	15,6 millions de dollars	Développement d'énergie renouvelable
Programmes communautaires	9,8 millions de dollars	Éducation et soutien local

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs technologiques

Modernisation avancée du réseau et investissements technologiques de la grille intelligente

Evergy a engagé 1,2 milliard de dollars dans les initiatives de modernisation du réseau jusqu'en 2025. Les investissements technologiques intelligents de la société comprennent le déploiement de 1,3 million d'appareils d'infrastructure de comptage avancés (AMI) dans ses territoires de service.

Catégorie d'investissement technologique	Montant d'investissement	Chronologie de la mise en œuvre
Compteurs intelligents	380 millions de dollars	2022-2025
Systèmes d'automatisation du réseau	450 millions de dollars	2023-2026
Infrastructure de communication	170 millions de dollars	2022-2024

Intégration des sources d'énergie renouvelables

Evergy a ciblé 50% Génération d'énergie renouvelable d'ici 2030. Le portefeuille renouvelable actuel comprend 2 300 MW de capacité de production d'éoliennes et 300 MW de capacité de production solaire.

Source d'énergie renouvelable	Capacité actuelle	Extension planifiée
Énergie éolienne	2 300 MW	+500 MW d'ici 2026
Énergie solaire	300 MW	+250 MW d'ici 2025

Déploiement des technologies de stockage d'énergie et de batterie

Evergy a investi 120 millions de dollars dans des projets de stockage de batteries, avec une capacité de stockage de batterie opérationnelle actuelle de 100 MW. L'expansion de stockage de la batterie prévue comprend 200 MW supplémentaires d'ici 2027.

Transformation numérique et efficacité opérationnelle dirigée par l'IA

Les investissements technologiques pour la transformation numérique ont totalisé 95 millions de dollars en 2023, en se concentrant sur:

• Systèmes de maintenance prédictive alimentés par l'IA
• Algorithmes d'optimisation de la grille d'apprentissage automatique
• Technologies d'amélioration de la cybersécurité

Zone de transformation numérique	Investissement	Gain d'efficacité attendu
Maintenance prédictive	35 millions de dollars	15% de réduction des coûts d'entretien
Optimisation de la grille AI	40 millions de dollars	Amélioration de 8% de la fiabilité de la grille
Cybersécurité	20 millions de dollars	Capacités de détection de menaces améliorées

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations des services publics d'État et fédéraux

Evergy, Inc. opère dans plusieurs cadres réglementaires d'État au Kansas et au Missouri. La société est soumise à la surveillance de la Kansas Corporation Commission et de la Missouri Public Service Commission.

Corps réglementaire	Juridiction	Exigences réglementaires clés
Commission Kansas Corporation	Territoire de service du Kansas	Examen des cas de taux, investissements d'infrastructure
Commission de la fonction publique du Missouri	Territoire de service du Missouri	Normes de fiabilité de la grille, protection des consommateurs

Exigences légales en cours pour la protection de l'environnement et les normes d'émissions

Evergy est conforme à la Clean Air Act et à Clean Water Act, avec des objectifs spécifiques de réduction des émissions.

Réglementation environnementale	Métrique de conformité	État actuel
Normes d'émissions de l'EPA	Réduction du CO2	Objectif de réduction à 50% d'ici 2030
Plan d'alimentation propre	Émissions de gaz à effet de serre	Surveillance continue de la conformité

Approbations réglementaires pour les infrastructures et les projets d'énergie renouvelable

Evergy a obtenu plusieurs approbations réglementaires pour les extensions des énergies renouvelables.

Type de projet	Statut d'approbation réglementaire	Capacité
Projet d'énergie éolienne	Approuvé	200 MW
Infrastructure solaire	Examen en attente	150 MW

Défis juridiques potentiels liés à la transition énergétique et aux structures de taux

Les défis juridiques actuels impliquent la conception des taux et l'intégration des énergies renouvelables.

• Cas de taux en attente au Kansas: demande d'ajustement de revenus de 62,4 millions de dollars
• Litige lié aux investissements de la modernisation du réseau
• Procédure réglementaire en cours pour recouvrement des coûts des énergies renouvelables

Evergy, Inc. (EVRG) - Analyse du pilon: facteurs environnementaux

Engagement à réduire les émissions de carbone et l'empreinte des gaz à effet de serre

Evergy, Inc. s'est engagé à réduire 80% À partir des niveaux de référence 2005 d'ici 2050. En 2024, les émissions de dioxyde de carbone de la société étaient de 20,5 millions de tonnes métriques.

Métrique des émissions	Valeur 2024	Cible de réduction
Émissions de dioxyde de carbone	20,5 millions de tonnes métriques	Réduction à 80% d'ici 2050
Émissions de gaz à effet de serre	22,1 millions de tonnes métriques CO2E	Net zéro d'ici 2045

Investissements dans la production d'énergie renouvelable et la technologie propre

Evergy a investi 1,2 milliard de dollars dans les infrastructures d'énergie renouvelable en 2024.

Source d'énergie renouvelable	Capacité installée (MW)	Pourcentage de la génération totale
Énergie éolienne	3 200 MW	35%
Énergie solaire	450 MW	5%
Capacité renouvelable totale	3 650 MW	40%

Stratégies d'adaptation pour les effets du changement climatique sur les infrastructures énergétiques

Evergy a alloué 350 millions de dollars Pour les projets de résilience climatique et d'adaptation des infrastructures en 2024.

• Investissements de modernisation du réseau: 175 millions de dollars
• Protection contre les inondations et les intempéries: 85 millions de dollars
• Implémentation de la technologie de la grille intelligente: 90 millions de dollars

Objectifs de durabilité environnementale et cibles des énergies renouvelables d'entreprise

Evergy vise à réaliser Génération de 50% d'énergie renouvelable d'ici 2030.

Objectif de durabilité	Année cible	Progrès actuel
Production d'énergie renouvelable	2030	40%
Émissions de carbone net zéro	2045	En cours
Améliorations de l'efficacité énergétique	2030	Une réduction de 20% obtenue

Evergy, Inc. (EVRG) - PESTLE Analysis: Social factors

Public demand for clean energy and environmental stewardship is increasing, pressuring the generation mix

You are seeing a clear, sustained social demand for a cleaner energy mix, and this is putting Evergy, Inc. under significant public and regulatory scrutiny. The company has made progress, with carbon emissions reduced by 53 percent from 2005 levels as of 2023, and roughly half of the power provided to customers today coming from carbon-free sources, including nuclear and renewables. That's a strong starting point.

But here's the quick math: Evergy's latest 2025 Integrated Resource Plan (IRP) shows a pivot that directly conflicts with this public demand. The plan reduces the projected renewable energy additions to 3 GW in 2025, down from 3.5 GW in the 2022 IRP, while increasing new methane gas generation additions to more than 4.4 GW over the long term. This shift has already generated pushback from customers and environmental groups, who question the necessity and the increased costs that ratepayers will defintely face. The social license to operate hinges on balancing reliability with an aggressive clean energy transition, and this new generation mix creates a major tension point.

• Current Carbon-Free Share: ~50% of generation.
• Owned Wind Capacity: >4,500 MW.
• 2025 IRP Planned Gas Additions: >4.4 GW.

Focus on energy equity and affordability for low-income customers is a growing regulatory and social concern

Energy equity, which extends beyond just affordability to include access and participation, is no longer a niche issue; it is a central regulatory and social concern in the utility sector. For Evergy, this means managing the cost of the grid transition without disproportionately burdening low-income customers. The company recognizes this, which is why its Corporate Social Impact program secured more than $52 million in utility payment assistance and worked with over 35,000 customers face-to-face in 2022 to connect them with support.

However, the challenge is structural. Advocacy groups are pushing for the company to address the broader definition of an overburdened customer-which includes factors like race, age, and health-not just income. The social expectation is for utility programs to move past simple bill assistance toward comprehensive energy efficiency and weatherization measures that permanently reduce the energy burden for these vulnerable populations. This is a critical risk area, as cost increases tied to new generation projects will inevitably amplify the affordability debate.

Energy Equity Metric	Most Recent Data (2022)	Social/Regulatory Implication
Utility Payment Assistance Secured	>$52 million	Mitigates immediate financial hardship for vulnerable customers.
Customers Assisted (Face-to-Face)	>35,000	Shows direct engagement but highlights the scale of the energy burden issue.
Program Focus	Weatherization, Multi-family upgrades, LIEAP.	Needs to expand beyond income-only criteria to address broader energy equity factors.

Customer expectations for digital self-service and real-time outage communication are rising sharply

The ubiquity of instant digital services has fundamentally changed what customers expect from their utility. They want real-time data and self-service options, and they want them now. Evergy has a strong foundation for this, having achieved 100% smart meter penetration across its electric customer base by the end of 2023. This infrastructure is the backbone for advanced digital services.

The company has responded by pushing digital engagement hard. For instance, a recent digital education initiative for a Time-of-Use (TOU) rate transition resulted in 98 percent customer awareness of the new rate options, which is a huge win for digital adoption. Customers are also actively encouraged to use the mobile app for reporting and tracking outages and signing up for text or email alerts, a service highlighted in 2025 preparedness communications. This digital fluency is a major opportunity for Evergy to improve customer satisfaction and reduce call center load, but it also means any failure in the digital channel, particularly during a major outage, will be amplified.

Workforce demographics show a need for skilled labor to manage advanced grid technology

The energy transition is fundamentally a labor transition. As Evergy invests heavily in smart grid technologies to support its renewable portfolio and improve reliability, the demand for a new class of highly skilled technical workers is intensifying. The company's capital investment plan, raised to $17.5 billion for 2025E-2029E, includes significant spending on grid modernization, which requires a specialized workforce.

The broader energy industry is facing a major talent crunch, with some analyses projecting a lack of up to 40,000 competent workers by 2025 globally. Specifically, construction jobs, which are vital for building out clean energy infrastructure, accounted for 45% of the clean energy workforce (over 1.6 million jobs) in the U.S. in 2024, underscoring the competition for skilled trades. Evergy must actively manage the retirement wave of long-tenured employees and compete aggressively for new talent in areas like cybersecurity, data analytics, and advanced grid operations, or risk delays in its infrastructure programs.

Evergy, Inc. (EVRG) - PESTLE Analysis: Technological factors

Deployment of Advanced Metering Infrastructure (AMI) is crucial for grid efficiency and data collection

The technological foundation for Evergy, Inc.'s modernization strategy is already largely in place. You should know that the company has essentially completed its Advanced Metering Infrastructure (AMI), or smart meters, deployment. This isn't a future project; it's a realized asset. As of the end of 2025, the Percent of Total Electric Customers with Smart Meters is reported at 100%.

This full deployment, covering Evergy's 1.7 million customers across Kansas and Missouri, shifts the focus from installation cost to data utilization. The immediate opportunity is using this two-way communication to manage peak demand and customer behavior. For example, the successful transition of residential customers in Missouri to various time-of-use (TOU) rate options by the end of 2023 was only possible because the smart meter infrastructure was ready to provide the necessary granular data. This is defintely a high-value asset, allowing for better load forecasting and faster outage detection.

Integration of intermittent renewable sources requires sophisticated battery storage and transmission upgrades

The push for cleaner energy is a massive technological driver, but intermittent sources like wind and solar create a complex stability challenge for the grid. The technology solution is two-fold: new generation and energy storage. Evergy's 2025 Integrated Resource Plan (IRP) is targeting the addition of 624 MW of new solar resources by 2025.

To manage that new, variable power, sophisticated battery storage is mandatory. The company models utility-scale battery storage resources in 150 MW blocks for capacity expansion planning. While utility-scale projects are ramping up, Evergy is actively testing distributed energy resource (DER) management through its Home Battery Storage Pilot program, which provides participants with a FREE 16 kWh home battery system valued at $18,000. This pilot is critical for learning how to orchestrate thousands of small storage units to support the main grid.

Cybersecurity investment is mandatory to protect critical infrastructure from increasingly complex threats

Honestly, a smart grid is a target-rich environment for malicious actors. The increased connectivity from AMI and grid automation means the attack surface has grown exponentially. Evergy's cybersecurity and Information Technology (IT) risk mitigation program is a continuous, non-negotiable expense, grounded in compliance with the North American Electric Reliability Corporation (NERC) and the National Institute of Standards and Technology (NIST) Cybersecurity Framework.

The capital outlay for this protection is substantial and is captured within the broader IT and General Facilities budget. Here's the quick math on the technological CapEx for 2025:

2025 Capital Expenditure Category	2025E CapEx (Millions USD)	Strategic Purpose
Total Capital Expenditure	$2,541	Overall Infrastructure Modernization
Distribution (Grid Hardening/Automation)	$926	Reliability and Resiliency
New Generation (e.g., Solar, Gas)	$501	Resource Adequacy and Decarbonization
General Facilities, IT, and Other (incl. Cybersecurity)	$204	System Security and Operational Efficiency

Grid hardening technologies reduce outage duration and improve reliability

The largest single technological investment outside of new generation is focused squarely on making the physical grid more resilient against extreme weather and operational faults. Evergy is dedicating a significant portion of its total spending to grid modernization, with more than 45% of the 2025 capital spend going directly to these projects.

This is where the rubber meets the road for reliability. The goal is to deploy technologies that automatically detect and isolate faults, which is a major step up from manual inspection.

• Replace aged infrastructure: Upgrading power poles, overhead lines, and underground cables.
• Distribution Automation: Deploying new sensors and software (like the completed Advanced Distribution Management System) to better identify and isolate outages.
• Targeted Hardening: Investing in asset hardening and undergrounding critical assets to improve resiliency.

With a planned $926 million in Distribution CapEx for 2025, this investment is a clear action to improve reliability metrics like System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI).

Evergy, Inc. (EVRG) - PESTLE Analysis: Legal factors

Compliance with federal Environmental Protection Agency (EPA) regulations on air and water emissions requires significant investment.

The legal pressure from the Environmental Protection Agency (EPA) is a permanent cost of doing business, especially for a utility with a substantial coal-fired generation fleet. While Evergy, Inc. has made strides-reducing carbon dioxide (CO2) emissions by 57% and sulfur dioxide (SO2) by 98% compared to 2005 levels-the ongoing compliance burden is high.

The company's five-year capital expenditure (CAPEX) plan is heavily weighted toward generation resource transition and grid modernization, which directly addresses future environmental mandates. For the 2025 fiscal year, Evergy's total projected annual capital expenditures stand at approximately $2,336.6 million. A portion of this is for managing existing environmental liabilities, such as the proper closure of coal ash storage sites, which falls under the federal Coal Combustion Residuals (CCR) rule.

You can't afford to be defintely sloppy with these rules; a previous settlement with the EPA over CCR non-compliance at the retired Tecumseh Energy Center resulted in a civil penalty of $120,000 and required costly actions like installing additional groundwater monitoring wells. That's a clear signal that the regulatory body is watching closely.

Ongoing rate case filings in both Kansas and Missouri are the primary legal battlegrounds for revenue recovery.

Rate cases are the legal mechanism for a regulated utility to recover its capital investments and operating costs, plus a fair return for shareholders. This process is the single most critical legal and financial event each year, and the outcomes in 2025 have been mixed but constructive.

In Kansas, the Kansas Corporation Commission (KCC) case for Evergy Kansas Central was a major focus. Evergy initially requested a rate increase of $196.4 million (8.62% of retail revenues) in January 2025, largely to recover nearly $1 billion in infrastructure investment. However, the legal and regulatory process led to a proposed settlement in July 2025 for a lower increase of $128 million, which is a reduction of $68 million from the original ask. This is the reality of regulatory negotiation.

The Missouri Public Service Commission (MPSC) case for Evergy Missouri West also concluded, with new rates effective January 1, 2025. The company had sought an increase of over $104 million, but the MPSC ultimately approved a net increase to retail revenues of approximately $55 million. The difference between the requested and approved amounts shows the regulatory commissions are actively managing ratepayer impact.

Jurisdiction	Filing Entity	Original 2025 Revenue Request (Approx.)	Approved/Settled 2025 Revenue Increase (Approx.)
Kansas	Evergy Kansas Central	$196.4 million	$128 million (Settlement)
Missouri	Evergy Missouri West	Over $104 million	Approximately $55 million (Approved)

Litigation risk related to extreme weather events and grid resilience is a growing liability.

The legal exposure from service interruptions during extreme weather is a rising concern, especially as climate events become more frequent and severe. Customers and state regulators are increasingly scrutinizing utility performance during cold snaps and major storms, leading to higher litigation and regulatory risk.

The North American Electric Reliability Corporation (NERC) 2025-2026 Winter Reliability Assessment flagged the Southwest Power Pool (SPP), which includes Evergy's service area, for elevated risk of outages during extreme cold due to demand growth outpacing new supplies. This assessment provides a legal basis for regulators to demand more investment in resilience.

Evergy addresses this by prioritizing grid modernization and resilience in its capital plan, specifically to withstand extreme weather. Failure to invest prudently here can lead to lawsuits and regulatory penalties that dwarf the cost of the preventative infrastructure.

Adherence to North American Electric Reliability Corporation (NERC) standards is non-negotiable for system security.

Compliance with NERC standards is mandatory for maintaining the security and reliability of the bulk power system. Non-compliance is met with significant financial penalties from the Federal Energy Regulatory Commission (FERC) and NERC.

The legal requirement for operational security is a major driver of capital spending. Evergy's 2025 estimated capital expenditure for Transmission is $547 million, a large part of which is dedicated to meeting these reliability and security mandates. This investment is non-negotiable.

A concrete example of the cost of failure is the 2024 penalty of $122,000 Evergy faced for non-compliance with NERC's FAC-008-3 R6 standards, which relate to facility ratings. This shows that even minor deviations from technical standards carry a direct financial cost, plus the indirect cost of remediation and increased audit scrutiny.

The key NERC-driven legal compliance areas include:

• Maintaining mandatory system security for the bulk power system.
• Ensuring facility ratings (FAC) are accurate and compliant.
• Investing in transmission infrastructure to improve reliability.

Evergy, Inc. (EVRG) - PESTLE Analysis: Environmental factors

The environmental factor is a defining strategic pressure for Evergy, Inc., driving a massive capital expenditure program but also creating significant tension between decarbonization goals and near-term grid reliability.

You need to understand that Evergy's stated commitment to a clean energy transition is being complicated by the immediate, surging demand for power from large industrial customers and data centers. This conflict is forcing the company to delay coal plant retirements and invest heavily in natural gas, which is a clear, near-term environmental risk to their long-term climate targets.

Evergy aims for a significant reduction in carbon emissions, targeting a 70% reduction by 2030 from 2005 levels.

Evergy's primary environmental commitment is achieving net-zero carbon emissions by 2045, but the critical near-term milestone is a 70% reduction in owned generation carbon dioxide ($\text{CO}_2$) emissions by 2030, relative to 2005 levels. The company has already made substantial progress, reaching an approximate 50% reduction in carbon emissions relative to the 2005 baseline by the end of 2024.

To be fair, the company's 2005 baseline for total owned generation $\text{CO}_2$ emissions was 48,455,198 metric tons (MT), which was reduced to 20,644,649 MT in 2024. Hitting the 70% target by 2030 means cutting another roughly 12 million MT in the next six years, and that's a tough lift given the recent shift in their resource plan.

Here's the quick math: If Evergy can secure an allowed ROE near the 9.5%-10.0% range in its next rate cases, that makes funding the necessary CapEx much easier. If they get pushed down to 9.0% or lower, the investment thesis gets tougher, and that's your key risk.

The company is actively retiring older, less efficient coal-fired generation units.

While the long-term plan involves retiring coal units, the 2025 Integrated Resource Plan (IRP) updates show a strategic delay in the retirement of key coal-fired plants, totaling 914 MW of capacity, to maintain grid reliability and meet rising customer demand. This is a major pivot from previous plans.

For example, the retirement of the 480 MW Lawrence Energy Center coal plant has been delayed from 2028 to the end of 2032. Similarly, a 375 MW retirement for the Evergy Metro subsidiary has been pushed back from 2032 to 2033. The strategy now includes converting some coal units to natural gas, like the planned transition of Lawrence 5 to natural gas operation beginning in 2029. This avoids immediate coal retirement but introduces long-term reliance on another fossil fuel.

The table below summarizes the key changes in the coal retirement schedule announced in the 2025 IRP update:

Coal Unit/Subsidiary	Capacity (MW)	Previous Retirement Date	New Retirement Date (2025 IRP)
Lawrence Energy Center (Evergy Kansas Central)	480 MW	2028	2032
Evergy Metro Retirement	375 MW	2032	2033
Evergy Missouri West Retirement	59 MW	2031	2032

Increased investment in wind and solar generation capacity forms the core of the clean energy transition.

Evergy has a massive \$17.5 billion capital investment plan spanning 2025 to 2029. Of this, a substantial \$6.17 billion is allocated to renewable energy projects alone, which includes grid modernization necessary for integrating intermittent sources. The near-term plan involves developing 800 MW of renewable capacity.

Still, the transition is not purely renewable. The 2025 IRP update also includes plans for over 4.4 GW of new methane gas facilities, including two new combined-cycle gas turbine (CCGT) plants near Viola and Hutchinson, Kansas. This dual-track approach-renewables plus gas-is a pragmatic, but controversial, response to reliability concerns and the need for dispatchable generation (power that can be turned on quickly). In fact, the planned renewable additions fell to 3 GW in the 2025 update, while gas additions soared.

Key CapEx for the transition in 2025 and beyond:

• Total CapEx (2025E): \$2.541 billion
• 5-Year Renewable Allocation (2025-2029): \$6.17 billion
• Planned New Gas Capacity (2025 IRP): Over 4.4 GW

Managing coal ash and other waste products from legacy plants remains a long-term environmental liability.

The handling of Coal Combustion Residuals (CCRs), or coal ash, from legacy power plants continues to be a material long-term liability for Evergy. The company is subject to federal regulations under the Environmental Protection Agency's (EPA) CCR program, which mandates closure of certain disposal units and requires corrective action for groundwater contamination.

Evergy has recorded Asset Retirement Obligations (AROs) on its balance sheet to account for the estimated cost of closing ash disposal units. However, the August 2025 10-Q filing notes that the cost to comply with the EPA's expanded CCR regulations, particularly those focused on legacy surface impoundments, could be material, and the company is unable to accurately assess the full financial impact yet. This means the recorded AROs may be insufficient if more stringent remediation is required.

Next step: Finance: Model the sensitivity of Evergy's projected 2026 earnings per share (EPS) to a 50 basis point change in the allowed ROE by the end of the month.