Evergy, Inc. (EVRG): Análise de Pestle [Jan-2025 Atualizada]

No cenário dinâmico da transformação de energia, a Evergy, Inc. (EVRG) está em uma interseção crítica de inovação, regulamentação e sustentabilidade. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que enfrentam esse gigante da utilidade do Centro -Oeste, explorando como os fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais estão reformulando sua trajetória estratégica. Desde investimentos de energia renovável até modernização da rede, a Evergy navega em um complexo ecossistema de expectativas em evolução, interrupções tecnológicas e paisagens regulatórias que definirão seu sucesso e resiliência futuros no setor de energia em rápida mudança.

Evergy, Inc. (EVRG) - Análise de pilão: fatores políticos

Os regulamentos estaduais do Kansas e Missouri afetam operações de utilidade

A Evergy opera sob estruturas regulatórias em dois estados primários com requisitos legislativos específicos:

Estado	Comissão Regulatória	Orçamento anual de revisão regulatória
Kansas	Comissão da Corporação de Kansas	US $ 1,2 milhão
Missouri	Comissão de Serviço Público do Missouri	US $ 1,5 milhão

Discussões federais sobre políticas energéticas

As discussões atuais da política federal de energia envolvem considerações significativas de investimento em energia renovável:

• Valor de crédito tributário de produção (PTC): US $ 25/MWh para projetos de energia eólica
• Taxa de crédito tributário de investimento (ITC): 30% para infraestrutura de energia solar
• Incentivos federais de energia limpa potencial: estimado US $ 369 bilhões por meio da Lei de Redução da Inflação

Apoio político para transições de energia limpa

Padrões de portfólio de energia renovável Nos estados -alvo:

Estado	Alvo de energia renovável	Prazo para conformidade
Kansas	20% até 2020	2020
Missouri	15% até 2021	2021

Incerteza da regulamentação ambiental

Potenciais mudanças regulatórias que afetam as operações da Evergy:

• Alvos de redução de emissões de carbono da EPA: 40-52% até 2030
• Custo estimado de conformidade: US $ 450 a US $ 750 milhões
• Potenciais mecanismos de precificação de carbono em consideração

Evergy, Inc. (EVRG) - Análise de pilão: fatores econômicos

Demanda de energia flutuante devido a condições econômicas na região do centro -oeste

Em 2023, a Evergy registrou vendas totais de 56.376 gigawatt-hora em seus territórios de serviço no Kansas e no Missouri. Os indicadores econômicos regionais mostram padrões variados de consumo de energia.

Indicador econômico	2023 valor	Mudança de ano a ano
Consumo de energia industrial do meio -oeste	23.456 GWh	+2.3%
Demanda de energia residencial	18.945 GWh	+1.7%
Uso de energia do setor comercial	14.975 GWh	+1.5%

Investimento de infraestrutura influenciado pela recuperação econômica e financiamento federal

Evergy alocada US $ 1,2 bilhão Para investimentos em infraestrutura em 2023, com partes significativas suportadas por programas federais de financiamento de infraestrutura.

Categoria de investimento	2023 Investimento	Contribuição federal de financiamento
Modernização da grade	US $ 456 milhões	US $ 127 milhões
Infraestrutura de energia renovável	US $ 378 milhões	US $ 89 milhões
Atualizações da linha de transmissão	US $ 366 milhões	US $ 102 milhões

Estruturas de taxa de eletricidade impactadas pelos custos de inflação e operacionais

Taxas médias de eletricidade para clientes evergy em 2023:

• Residencial: 12,45 centavos por kWh
• Comercial: 10,23 centavos por kWh
• Industrial: 7,89 centavos por kWh

Impacto da inflação nos custos operacionais aumentou as taxas de eletricidade por 3.7% comparado ao ano anterior.

Potenciais incentivos econômicos para o desenvolvimento de energia renovável

Incentivo energético renovável	2023 valor	Impacto projetado
Crédito fiscal federal de produção	US $ 26 por mwh	Suporta expansão de energia eólica
Crédito do imposto sobre investimentos	30% dos custos do projeto	Incentiva a infraestrutura solar
Créditos de energia renovável em nível estadual	US $ 15 por mwh	Aprimora a viabilidade do projeto renovável

O portfólio de energia renovável da Evergy alcançou 3.456 MW em 2023, representando 42% da capacidade total de geração.

Evergy, Inc. (EVRG) - Análise de Pestle: Fatores sociais

Crescente demanda do consumidor por soluções de energia sustentável e limpa

De acordo com a Administração de Informações sobre Energia dos EUA, o consumo de energia renovável no Kansas aumentou para 24,8% em 2022, com energia eólica representando 41,4% da geração de eletricidade no estado.

Tipo de energia renovável	Porcentagem de geração	Taxa de crescimento (2021-2022)
Energia eólica	41.4%	3.2%
Energia solar	2.1%	12.5%

Mudanças demográficas no Kansas e Missouri afetando padrões de consumo de energia

A partir de 2022, a população do Kansas: 2.937.880; População do Missouri: 6.154.913. Idade mediana no Kansas: 36,8 anos; Missouri: 38,6 anos.

Segmento demográfico	Porcentagem do Kansas	Porcentagem do Missouri
População urbana	74.3%	70.1%
População abaixo de 25 anos	31.2%	29.8%

Aumentar a conscientização do público sobre as mudanças climáticas impactos em estratégias da empresa de utilidade

A Evergy comprometeu US $ 1,6 bilhão a iniciativas de redução de carbono até 2030, direcionando a redução de 70% de emissão de carbono em relação aos níveis de 2005.

Métrica de redução de carbono	2005 linha de base	Alvo de 2030
Emissões de carbono (milhões de toneladas)	22.3	6.7
Investimento em energia limpa	US $ 0,5 bilhão	US $ 1,6 bilhão

Expectativas da comunidade para responsabilidade social corporativa e mordomia ambiental

A Evergy investiu US $ 25,4 milhões em programas comunitários e iniciativas ambientais em 2022.

Categoria de RSE	Valor do investimento	Foco do programa
Iniciativas ambientais	US $ 15,6 milhões	Desenvolvimento de energia renovável
Programas comunitários	US $ 9,8 milhões	Educação e apoio local

Evergy, Inc. (EVRG) - Análise de Pestle: Fatores tecnológicos

Modernização avançada de grade e investimentos em tecnologia de grade inteligente

A Evergy comprometeu US $ 1,2 bilhão a iniciativas de modernização de grade até 2025. Os investimentos em tecnologia de grade inteligente da empresa incluem a implantação de 1,3 milhão de dispositivos de infraestrutura de medição avançada (AMI) em seus territórios de serviço.

Categoria de investimento em tecnologia	Valor do investimento	Linha do tempo da implementação
Medidores inteligentes	US $ 380 milhões	2022-2025
Sistemas de automação de grade	US $ 450 milhões	2023-2026
Infraestrutura de comunicação	US $ 170 milhões	2022-2024

Integração de fontes de energia renovável

Evergy tem como alvo 50% de geração de energia renovável até 2030. O portfólio renovável atual inclui 2.300 MW de capacidade de geração de vento e 300 MW de capacidade de geração solar.

Fonte de energia renovável	Capacidade atual	Expansão planejada
Energia eólica	2.300 MW	+500 mw até 2026
Energia solar	300 MW	+250 MW até 2025

Implantação de tecnologias de armazenamento de energia e bateria

A Evergy investiu US $ 120 milhões em projetos de armazenamento de bateria, com capacidade atual de armazenamento operacional de bateria de 100 MW. A expansão planejada de armazenamento de bateria inclui 200 MW adicionais até 2027.

Transformação digital e eficiência operacional orientada pela IA

Os investimentos em tecnologia para transformação digital totalizaram US $ 95 milhões em 2023, com foco em:

• Sistemas de manutenção preditivos movidos a IA
• Algoritmos de otimização de grade de aprendizado de máquina
• Tecnologias de aprimoramento de segurança cibernética

Área de transformação digital	Investimento	Ganho de eficiência esperado
Manutenção preditiva	US $ 35 milhões	Redução de 15% nos custos de manutenção
Otimização da grade AI	US $ 40 milhões	Melhoria de 8% na confiabilidade da grade
Segurança cibernética	US $ 20 milhões	Recursos aprimorados de detecção de ameaças

Evergy, Inc. (EVRG) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos estaduais e federais

A Evergy, Inc. opera sob várias estruturas regulatórias estaduais no Kansas e no Missouri. A empresa está sujeita a supervisão da Comissão da Corporação de Kansas e da Comissão de Serviço Público do Missouri.

Órgão regulatório	Jurisdição	Principais requisitos regulatórios
Comissão da Corporação de Kansas	Território do Serviço do Kansas	Avaliações de casos de avaliação, investimentos em infraestrutura
Comissão de Serviço Público do Missouri	Território de serviço do Missouri	Padrões de confiabilidade da grade, proteção ao consumidor

Requisitos legais em andamento para padrões de proteção ambiental e emissões

Evergy está em conformidade com a Lei do Ar Limpo e a Lei da Água Limpa, com metas específicas de redução de emissões.

Regulamentação ambiental	Métrica de conformidade	Status atual
Padrões de emissões da EPA	Redução de CO2	Alvo de redução de 50% até 2030
Plano de energia limpa	Emissões de gases de efeito estufa	Monitoramento contínuo de conformidade

Aprovações regulatórias para infraestrutura e projetos de energia renovável

A Evergy garantiu várias aprovações regulatórias para expansões de energia renovável.

Tipo de projeto	Status de aprovação regulatória	Capacidade
Projeto de energia eólica	Aprovado	200 MW
Infraestrutura solar	Revisão pendente	150 MW

Desafios legais potenciais relacionados à transição de energia e estruturas de taxa

Os desafios legais atuais envolvem o design da taxa e a integração de energia renovável.

• Caso de taxa pendente no Kansas: solicitação de ajuste de receita de US $ 62,4 milhões
• Litígios relacionados a investimentos em modernização de grade
• Procedimentos regulatórios em andamento para recuperação de custos de energia renovável

Evergy, Inc. (EVRG) - Análise de Pestle: Fatores Ambientais

Compromisso em reduzir as emissões de carbono e a pegada de gases de efeito estufa

A Evergy, Inc. se comprometeu a reduzir as emissões de carbono por 80% A partir de 2005, os níveis de linha de base até 2050. Em 2024, as emissões de dióxido de carbono da empresa eram 20,5 milhões de toneladas.

Métrica de emissão	2024 Valor	Alvo de redução
Emissões de dióxido de carbono	20,5 milhões de toneladas métricas	80% de redução até 2050
Emissões de gases de efeito estufa	22,1 milhões de toneladas métricas	Líquido zero até 2045

Investimentos em geração de energia renovável e tecnologia limpa

Evergy investiu US $ 1,2 bilhão em infraestrutura de energia renovável a partir de 2024.

Fonte de energia renovável	Capacidade instalada (MW)	Porcentagem de geração total
Energia eólica	3.200 MW	35%
Energia solar	450 MW	5%
Capacidade renovável total	3.650 MW	40%

Estratégias de adaptação para os impactos das mudanças climáticas na infraestrutura energética

Evergy alocou US $ 350 milhões Para projetos de resiliência climática e adaptação de infraestrutura em 2024.

• Investimentos de modernização da grade: US $ 175 milhões
• Inundação e proteção climática extrema: US $ 85 milhões
• Implementação de tecnologia de grade inteligente: US $ 90 milhões

Objetivos de sustentabilidade ambiental e metas de energia renovável corporativa

Evergy pretende alcançar 50% de geração de energia renovável até 2030.

Meta de sustentabilidade	Ano -alvo	Progresso atual
Geração de energia renovável	2030	40%
Emissões de carbono zero líquidas	2045	Em andamento
Melhorias de eficiência energética	2030	Redução de 20% alcançada

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.