SEC Filing | Evergy, Inc.

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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 24, 2011

WESTAR ENERGY, INC.

(Exact name of registrant as specified in its charter)


KANSAS	1-3523	48-0290150
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

818 South Kansas Avenue, Topeka, Kansas		66612
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (785) 575-6300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

WESTAR ENERGY, INC.

Item 2.02. Results of Operations and Financial Condition

On February 24, 2011, we issued a press release announcing our earnings for the period ended December 31, 2010. A copy of our February 24, 2011 press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. We are also including our 2010 Fourth Quarter and Year-End Earnings package, which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, will not be incorporated by reference into any registration statement filed by us under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 23, 2011, our Compensation Committee approved, and our Board of Directors ratified, new base salaries for our executive officers effective March 1, 2011. The base salary of Mr. William B. Moore, our President and Chief Executive Officer, increased from $660,000 to $680,000. The base salary of Mr. Douglas R. Sterbenz, our Executive Vice President and Chief Operating Officer, increased from $455,000 to $465,000. The base salary of Mr. Mark R. Ruelle, our Executive Vice President and Chief Financial Officer, increased from $435,000 to $445,000. The base salary of Mr. James J. Ludwig, our Executive Vice President, Public Affairs and Consumer Services, increased from $255,000 to $263,000. The base salary of Mr. Larry D. Irick, our Vice President, General Counsel and Corporate Secretary, increased from $265,000 to $275,000. None of these officers participates in any bonus or short-term incentive plan.

On February 23, 2011, long-term incentive awards were also approved for our executive officers. Mr. Moore, Mr. Sterbenz, Mr. Ruelle, Mr. Ludwig and Mr. Irick each received awards of 63,542, 26,500, 25,000, 12,800 and 14,250, respectively. Our average common stock price for the thirty-day period ended December 31, 2010 was used to determine the number of restricted share units awarded. In the case of each officer, half of the award consists of time-based restricted share units that vest on January 1, 2014. The other half of the award consists of a target number of performance-based restricted share units that vest on January 1, 2014, with the target number adjusted downward or upward based on our total shareholder return in comparison to the total shareholder return of a peer group during a performance period from January 1, 2011 through December 31, 2013. The officer will not receive any portion of the target award if our total shareholder return is less than 25% of the total shareholder return for the peer group, and the officer will receive between 25% and 200% of the target award if our total shareholder return is at least 25% and up to 90% or more of the total shareholder return for the peer group. Vesting is subject to the officer’s employment with us continuing uninterrupted through the vesting date, except that a prorated portion of the award will vest if the officer’s employment terminates on account of death, disability or retirement. The foregoing is qualified in its entirety by reference to the form of restricted share unit award documents filed as Exhibits 10(aq) and 10(ar), respectively, to our Annual report on Form 10-K filed on February 25, 2010.

Item 7.01. Regulation FD Disclosure.

We are furnishing our 2011 Earnings Guidance summary, which is attached hereto as Exhibit 99.3 and is incorporated herein by reference. This information is available to the public on our website, http://www.WestarEnergy.com. The information furnished pursuant to this Item 7.01, including Exhibit 99.3, will not be incorporated by reference into any registration statement filed by us under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

Item 9.01. Financial Statements and Exhibits.


Exhibit 99.1		Press Release dated February 24, 2011

Exhibit 99.2		2010 Fourth Quarter and Year-End Earnings package

Exhibit 99.3		2011 Earnings Guidance

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Westar Energy, Inc.

Date: February 24, 2011	By:	/s/ Larry D. Irick
	Name:	Larry D. Irick
	Title:	Vice President, General Counsel
		and Corporate Secretary

EXHIBIT INDEX


Exhibit Number		Description of Exhibit

Exhibit 99.1		Press Release dated February 24, 2011

Exhibit 99.2		2010 Fourth Quarter and Year-End Earnings package

Exhibit 99.3		2011 Earnings Guidance

Press Release

Exhibit 99.1


		Media contact:
		Gina Penzig,
		manager, corporate communications
		Phone: 785.575.8089
		gina.penzig@WestarEnergy.com
		Investor contact:
		Bruce Burns,
		director, investor relations
		Phone: 785.575.8227
		bruce.burns@WestarEnergy.com

WESTAR ENERGY ANNOUNCES 2010 RESULTS

TOPEKA, Kan., Feb. 24, 2011 — Westar Energy, Inc. (NYSE:WR) today announced earnings for 2010 were $203 million, or $1.81 per share, compared with earnings of $174 million, or $1.58 per share for 2009. Earnings for 2009 included a substantial federal tax benefit related to prior period activity from discontinued operations. Setting aside this benefit, 2009 earnings would have been $140 million, or $1.28 per share.


	Twelve Months Ended
	Dec. 31, 2010		Dec. 31, 2009
Basic earnings per share	$	1.81	$	1.58
Less: adjustment for tax benefits		—		0.30

Earnings per share from continuing operations	$	1.81	$	1.28

Fourth quarter earnings were $5 million, or $0.04 per share, compared with earnings of $11 million, or $0.10 per share, for the fourth quarter 2009.

Per share results for both fourth quarter and full year 2010 reflect more shares outstanding as a result of the company having issued shares to fund capital investments.

Income from continuing operations for 2010 increased $67 million compared with the same period last year, due principally to higher retail revenues due primarily to a 6 percent increase in kilowatt-hour sales as a result of warmer weather and economic recovery in certain industrial sectors. The higher revenues were offset in part by increased operating, interest and income tax expenses.

Page 1 of 4


Westar Energy announces 2010 results		Page 2 of 4

Earnings Guidance

The company announced earnings guidance for 2011 of $1.65 to $1.80 per share. The company has posted to its website a summary of factors it considers to be principal drivers and adjustments used in arriving at earnings guidance. The summary is located under Supplemental Materials within the Investors section of the company website at www.WestarEnergy.com.

Conference Call and Additional Company Information

Westar Energy management will host a conference call Friday, Feb. 25 with the investment community at 10:00 a.m. ET (9:00 a.m. CT). Investors, media and the public may listen to the conference call by dialing 866-770-7129, participant code 88510369. A webcast of the live conference call will be available at www.WestarEnergy.com.

Members of the media are invited to listen to the conference call and then contact Gina Penzig with any follow-up questions.

This earnings announcement, a package of detailed fourth quarter and year end 2010 financial information, the company’s annual report on Form 10-K for the period ended Dec. 31, 2010 and other filings the company has made with the Securities and Exchange Commission are available on the company’s website at www.WestarEnergy.com.

- 30 -

Westar Energy, Inc. (NYSE: WR) is the largest electric utility in Kansas, providing electric service to about 687,000 customers in the state. Westar Energy has about 6,800 megawatts of electric generation capacity and operates and coordinates more than 34,000 miles of electric distribution and transmission lines.

For more information about Westar Energy, visit us on the Internet at http://www.WestarEnergy.com.


Westar Energy announces 2010 results		Page 3 of 4

Forward-looking statements: Certain matters discussed in this news release are “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like “believe,” “anticipate,” “target,” “expect,” “pro forma,” “estimate,” “intend,” “guidance” or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as (1) those discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2010 (a) under the heading, “Forward-Looking Statements,” (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (e) in ITEM 8. Financial Statements and Supplementary Data: Notes 13 and 15; and (2) other factors discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made.


Westar Energy announces 2010 results		Page 4 of 4

Attachment 1

WESTAR ENERGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


	Three Months Ended December 31,									Twelve Months Ended December 31,
	2010			2009			Change			2010			2009		Change
Retail	$	332,524		$	316,880		$	15,644		$	1,538,785		$	1,379,981	$	158,804
Wholesale		78,804			86,490			(7,686	)		334,669			308,269		26,400
Transmission		36,016			31,548			4,468			144,513			132,450		12,063
Other		9,379			5,200			4,179			38,204			37,531		673

Total Revenues		456,723		$	440,118			16,605			2,056,171			1,858,231		197,940

Fuel and purchased power		124,568			132,242			(7,674	)		583,361			534,864		48,497
Operating and maintenance		150,825			124,658			26,167			520,409			516,930		3,479
Depreciation and amortization		69,982			64,990			4,992			271,937			251,534		20,403
Selling, general and administrative		63,108			56,421			6,687			207,607			199,961		7,646

Total Operating Expenses		408,483			378,311			30,172			1,583,314			1,503,289		80,025


Income from Operations		48,240			61,807			(13,567	)		472,857			354,942		117,915

Other (expense) income		(358	)		(103	)		(255	)		(4,260	)		2,598		(6,858	)
Interest expense		43,080			40,591			2,489			174,941			157,360		17,581
Income tax expense		(1,748	)		10,496			(12,244	)		85,032			58,850		26,182


Income from Continuing Operations		6,550			10,617			(4,067	)		208,624			141,330		67,294

Results of discontinued operations, net of tax		—			767			(767	)		—			33,745		(33,745	)


Net Income		6,550			11,384			(4,834	)		208,624			175,075		33,549
Less: Net income attributable to noncontrolling interests		1,389			—			1,389			4,728			—		4,728

Net income attributable to Westar Energy		5,161			11,384			(6,223	)		203,896			175,075		28,821
Preferred dividends		242			242			—			970			970		—


Net Income Attributable to Common Stock	$	4,919		$	11,142		$	(6,223	)	$	202,926		$	174,105	$	28,821


Basic Earnings Per Share:
Earnings available from continuing operations	$	0.04		$	0.09		$	(0.05	)	$	1.81		$	1.28	$	0.53
Discontinued operations, net of tax		—			0.01			(0.01	)		—			0.30		(0.30	)

Earnings per common share	$	0.04		$	0.10		$	(0.06	)	$	1.81		$	1.58	$	0.23


Average equivalent common shares outstanding		112,348			109,960			2,388			111,629			109,648		1,981

Dividends declared per share	$	0.31		$	0.30		$	0.01		$	1.24		$	1.20	$	0.04

2010 Fourth Quarter and Year-End Earnings package

Exhibit 99.2

Westar Energy, Inc

2010 Fourth Quarter and Year-end Earnings

Released February 24, 2011


Contents
	Page
Consolidated statements of income		1
Consolidated balance sheets		3
Consolidated statements of cash flows		4
Earnings variances		5
Supplemental data		7
Capitalization & Long-term Debt Table		9
GAAP to Non-GAAP reconciliation		10
Capital expenditures 2011-2013		11

Bruce Burns

Director Investor Relations

785-575-8227

bruce.burns@WestarEnergy.com

NOTE:

The Notes to the Condensed Consolidated Financial Statements in the company's Annual Report on Form 10-K for the period ended December 31, 2010 should be read in conjunction with this financial information. The enclosed statements have been prepared for the purpose of providing information concerning the Company and not in connection with any sale, offer for sale, or solicitation to buy any securities.

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)


	Three Months Ended December 31,
	2010			2009			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	130,957		$	128,927		$	2,030			1.6
Commercial		128,170			119,817			8,353			7.0
Industrial		75,637			68,332			7,305			10.7
Other retail		(2,240	)		(196	)		(2,044	)		(a	)

Total Retail Revenues		332,524			316,880			15,644			4.9
Wholesale		78,804			86,490			(7,686	)		(8.9	)
Transmission		36,016			31,548			4,468			14.2
Other		9,379			5,200			4,179			80.4

Total Revenues		456,723			440,118			16,605			3.8

OPERATING EXPENSES:
Fuel and purchased power		124,568			132,242			(7,674	)		(5.8	)
Operating and maintenance		150,825			124,658			26,167			21.0
Depreciation and amortization		69,982			64,990			4,992			7.7
Selling, general and administrative		63,108			56,421			6,687			11.9

Total Operating Expenses		408,483			378,311			30,172			8.0

INCOME FROM OPERATIONS		48,240			61,807			(13,567	)		(22.0	)

OTHER INCOME (EXPENSE):
Investment income		2,676			4,143			(1,467	)		(35.4	)
Other income		1,577			1,501			76			5.1
Other expense		(4,611	)		(5,747	)		1,136			19.8

Total Other Expense		(358	)		(103	)		(255	)		(247.6	)

Interest expense		43,080			40,591			2,489			6.1

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		4,802			21,113			(16,311	)		(77.3	)
Income tax (benefit) expense		(1,748	)		10,496			(12,244	)		(116.7	)

INCOME FROM CONTINUING OPERATIONS		6,550			10,617			(4,067	)		(38.3	)
Results of discontinued operations, net of tax		—			767			(767	)		(100.0	)

NET INCOME		6,550			11,384			(4,834	)		(42.5	)
Less: Net income attributable to nonontrolling interests		1,389			—			1,389			(a	)

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		5,161			11,384			(6,223	)		(54.7	)
Preferred dividends		242			242			—			—

NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	4,919		$	11,142		$	(6,223	)		(55.9	)


BASIC EARNINGS PER COMMON SHARE:
Earnings available from continuing operations	$	0.04		$	0.09		$	(0.05	)		(55.6	)
Discontinued operations, net of tax		—			0.01			(0.01	)		(100.0	)

Earnings per common share	$	0.04		$	0.10		$	(0.06	)		(60.0	)


Average equivalent common shares outstanding (in thousands)		112,348			109,960			2,388			2.2

DIVIDENDS DECLARED PER COMMON SHARE	$	0.31		$	0.30		$	0.01			3.3

(a)	Change greater than 1000%

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)


	Twelve Months Ended December 31,
	2010			2009			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	661,177		$	576,896		$	84,281			14.6
Commercial		572,062			529,847			42,215			8.0
Industrial		318,249			291,754			26,495			9.1
Other retail		(12,703	)		(18,516	)		5,813			31.4

Total Retail Revenues		1,538,785			1,379,981			158,804			11.5
Wholesale		334,669			308,269			26,400			8.6
Transmission		144,513			132,450			12,063			9.1
Other		38,204			37,531			673			1.8

Total Revenues		2,056,171			1,858,231			197,940			10.7

OPERATING EXPENSES:
Fuel and purchased power		583,361			534,864			48,497			9.1
Operating and maintenance		520,409			516,930			3,479			0.7
Depreciation and amortization		271,937			251,534			20,403			8.1
Selling, general and administrative		207,607			199,961			7,646			3.8

Total Operating Expenses		1,583,314			1,503,289			80,025			5.3

INCOME FROM OPERATIONS		472,857			354,942			117,915			33.2

OTHER INCOME (EXPENSE):
Investment income		7,026			12,658			(5,632	)		(44.5	)
Other income		5,369			7,128			(1,759	)		(24.7	)
Other expense		(16,655	)		(17,188	)		533			3.1

Total Other (Expense) Income		(4,260	)		2,598			(6,858	)		(264.0	)

Interest expense		174,941			157,360			17,581			11.2

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		293,656			200,180			93,476			46.7
Income tax expense		85,032			58,850			26,182			44.5

INCOME FROM CONTINUING OPERATIONS		208,624			141,330			67,294			47.6
Results of discontinued operations, net of tax		—			33,745			(33,745	)		(100.0	)

NET INCOME		208,624			175,075			33,549			19.2
Less: Net income attributable to nonontrolling interests		4,728			—			4,728			(a	)

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		203,896			175,075			28,821			16.5
Preferred dividends		970			970			—			—

NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	202,926		$	174,105		$	28,821			16.6


BASIC EARNINGS PER COMMON SHARE:
Earnings available from continuing operations	$	1.81		$	1.28		$	0.53			41.4
Discontinued operations, net of tax		—			0.30			(0.30	)		(100.0	)

Earnings per common share	$	1.81		$	1.58		$	0.23			14.6


Average equivalent common shares outstanding (in thousands)		111,629			109,648			1,981			1.8

DIVIDENDS DECLARED PER COMMON SHARE	$	1.24		$	1.20		$	0.04			3.3

(a)	Change greater than 1000%

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Balance Sheets

(Dollars in Thousands, except par values)

(Unaudited)


	December 31, 2010		December 31, 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	928	$	3,860
Accounts receivable, net		227,700		216,186
Inventories and supplies, net		206,867		193,831
Energy marketing contracts		13,005		33,159
Taxes receivable		16,679		45,200
Deferred tax assets		30,248		7,927
Prepaid expenses		12,413		11,830
Regulatory assets		73,480		97,220
Other		20,289		20,269

Total Current Assets		601,609		629,482

PROPERTY, PLANT AND EQUIPMENT, NET		5,964,439		5,771,740

PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		345,037		—

OTHER ASSETS:
Regulatory assets		787,585		758,538
Nuclear decommissioning trust		126,990		112,268
Energy marketing contracts		9,472		10,653
Other		244,506		242,802

Total Other Assets		1,168,553		1,124,261

TOTAL ASSETS	$	8,079,638	$	7,525,483


LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	61	$	1,345
Current maturities of long-term debt of variable interest entities		30,155		—
Short-term debt		226,700		242,760
Accounts payable		187,954		112,211
Accrued taxes		45,534		46,931
Energy marketing contracts		9,670		39,161
Accrued interest		77,771		76,955
Regulatory liabilities		28,284		39,745
Other		176,717		123,370

Total Current Liabilities		782,846		682,478

LONG-TERM LIABILITIES:
Long-term debt, net		2,490,871		2,490,734
Long-term debt of variable interest entities, net		278,162		—
Obligation under capital leases		7,514		109,300
Deferred income taxes		1,102,625		964,461
Unamortized investment tax credits		101,345		127,777
Regulatory liabilities		135,754		100,963
Deferred regulatory gain from sale-leaseback		97,541		108,532
Accrued employee benefits		483,769		433,561
Asset retirement obligations		125,999		119,519
Energy marketing contracts		10		210
Other		59,364		117,720

Total Long-Term Liabilities		4,882,954		4,572,777

COMMITMENTS AND CONTINGENCIES (See Notes 13 & 15 in Form 10-K)
TEMPORARY EQUITY		3,465		3,443


EQUITY:
Westar Energy Shareholders’ Equity:
Cumulative preferred stock, par value $100 per share; authorized 600,000 shares; issued and outstanding 214,363 shares		21,436		21,436
Common stock, par value $5 per share; authorized 150,000,000 shares; issued and outstanding 112,128,068 and 109,072,000 shares, respectively		560,640		545,360
Paid-in capital		1,398,580		1,339,790
Retained earnings		423,647		360,199

Total Westar Energy Shareholders’ Equity		2,404,303		2,266,785

Noncontrolling Interests		6,070		—

Total Equity		2,410,373		2,266,785

TOTAL LIABILITIES AND EQUITY	$	8,079,638	$	7,525,483

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)


	Twelve Months Ended December 31,
	2010			2009
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	208,624		$	175,075
Discontinued operations, net of tax		—			(33,745	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		271,937			251,534
Amortization of nuclear fuel		25,089			16,161
Amortization of deferred regulatory gain from sale-leaseback		(5,495	)		(5,495	)
Amortization of corporate-owned life insurance		20,650			22,116
Non-cash compensation		11,373			5,133
Net changes in energy marketing assets and liabilities		(1,284	)		8,972
Accrued liability to certain former officers		2,675			2,296
Net deferred income taxes and credits		120,169			46,447
Stock based compensation excess tax benefits		(641	)		(448	)
Allowance for equity funds used during construction		(3,104	)		(5,031	)
Changes in working capital items, net of acquisitions and dispositions:
Accounts receivable		(11,434	)		(17,159	)
Inventories and supplies		(12,266	)		10,466
Prepaid expenses and other		8,475			(10,635	)
Accounts payable		30,330			(15,115	)
Accrued taxes		27,565			30,493
Other current liabilities		(80,660	)		13,572
Changes in other assets		(42,544	)		73,784
Changes in other liabilities		38,243			(89,516	)

Cash flows from operating activities		607,702			478,905


CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment		(540,076	)		(555,637	)
Investment in corporate-owned life insurance		(19,162	)		(17,724	)
Purchase of securities within trust funds		(192,350	)		(64,016	)
Sale of securities within trust funds		191,603			61,096
Proceeds from investment in corporate-owned life insurance		2,204			1,748
Proceeds from federal grants		3,180			—
Investment in affiliated company		(280	)		(818	)
Other investing activities		(1,164	)		2,920

Cash flows used in investing activities		(556,045	)		(572,431	)


CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net		(16,060	)		67,860
Proceeds from long-term debt		—			347,507
Retirements of long-term debt		(1,695	)		(196,821	)
Retirements of long-term debt of variable interest entities		(28,610	)		—
Repayment of capital leases		(2,981	)		(10,190	)
Borrowings against cash surrender value of corporate-owned life insurance		74,134			10,299
Repayment of borrowings against cash surrender value of corporate-owned life insurance		(3,430	)		(3,531	)
Stock based compensation excess tax benefits		641			448
Issuance of common stock, net		54,651			4,587
Distributions to shareholders of noncontrolling interests		(2,093	)		—
Cash dividends paid		(129,146	)		(122,937	)

Cash flows (used in) from financing activities		(54,589	)		97,222


CASH FLOWS USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS:
Payment of settlement to former subsidiary		—			(22,750	)

Cash flow used in investing activities of discontinued operations		—			(22,750	)


NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,932	)		(19,054	)

CASH AND CASH EQUIVALENTS:
Beginning of period		3,860			22,914

End of period	$	928		$	3,860

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

4th Quarter 2010 vs. 2009

Earnings Variances


			Change
	($ per share)		(Dollars in thousands)
2009 earnings attributable to common stock	$	0.10	$	11,142
			*Favorable / (Unfavorable)*
Retail				15,644		A
Wholesale				(7,686	)	B
Transmission				4,468
Other revenues				4,179
Fuel and purchased power				7,674		C
SPP network transmission costs				(3,614	)

Gross Margin				20,665		D
Operating and maintenance w/o SPP NITS				(22,553	)	E	VIE
Depreciation and amortization				(4,992	)	F	VIE
Selling, general and administrative				(6,687	)	G
Other (expense) income				(255	)
Interest expense				(2,489	)	H	VIE
Income tax expense				12,244			VIE
Discontinued operations, net of tax				(767	)
Net income attributable to noncontrolling interests				(1,389	)		VIE
Change in shares outstanding		0.00

2010 earnings attributable to common stock	$	0.04	$	4,919


		Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)

A		Due principally to price increases; MWh sales increased 0.6 percent (see page 7 for changes is sales by class)

B		Due primarily to decreased demand; MWh sales decreased 14 percent and average market prices increased 6 percent

C		Lower level of electricity generated and lower average unit cost of fuel and purchased power

D		Due primarily to increased retail revenues driven by increases in prices

E		Increase in maintenance and repair outages at power plants - ($9.1M); increased maintenance of electrical distribution system, primarily tree trimming - ($4.9M); increased ad valorem tax expense, which is largely offset in revenues via a property tax surcharge - ($4.7M); all of which were partially offset with reduction in lease expense as a result of consolidation of variable interest entities (VIEs) - $5.1M

F		Higher plant balances; and consolidation of VIEs - ($1.5M)

G		Increase due primarily to: higher non-executive short term incentive compensation related to performance against operational and financial targets - ($4.6M); increased expense due to adjustment to long-term incentive and share award plan - ($1.9M); increase in employee benefit costs - (2.4M); partially offset by 2009 expense related to settlement of EPA litigation - $4M

H		Primarily additional interest expense as a result of consolidation of VIEs - ($2.8M)

I		Lower taxable income; utilization of capital loss and effect of non-deductible EPA settlement expense

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.

Westar Energy, Inc.

YTD December 2010 vs. 2009

Earnings Variances


				Change
	($ per share)			(Dollars in thousands)
2009 earnings attributable to common stock	$	1.58		$	174,105
				*Favorable / (Unfavorable)*
Retail					158,804		A
Wholesale					26,400		B
Transmission					12,063
Other revenues					673
Fuel and purchased power					(48,497	)	C
SPP network transmission costs					(11,048	)

Gross Margin					138,395
Operating and maintenance w/o SPP NITS					7,569		D	VIE
Depreciation and amortization					(20,403	)	E	VIE
Selling, general and administrative					(7,646	)	F
Other (expense) income					(6,858	)	G
Interest expense					(17,581	)	H	VIE
Income tax expense					(26,182	)	I	VIE
Discontinued operations, net of tax					(33,745	)	J
Net income attributable to noncontrolling interests					(4,728	)		VIE
Change in shares outstanding		(0.03	)

2010 earnings attributable to common stock	$	1.81		$	202,926


		Major factors influencing the period to period change in EPS — Favorable/(Unfavorable)

A		Reflects 6 percent increase in retail MWh sales, which benefited from favorable weather and economic improvement in industrial sales; reflects higher prices (see page 8 for changes in sales by class)

B		Higher average market prices; MWh sales decreased 1 percent

C		Increased electricity generated and purchased and a higher average unit cost for fuel and purchased power

D		Due primarily to: higher power plant maintenance primarily at Wolf Creek and wind generation facilities - - ($7.6M); higher maintenance of electrical distribution system, primarily tree trimming and line clearance - ($5.6M); decrease of lease expense as a result of consolidation of variable interest entities (VIEs) - $20.4M; and recognition of reduction to maximum liability for environmental remediation cost associated with assets divested many years ago - $5.0M

E		Higher plant balances due to addition of wind generation facilities, new generating plant, air quality controls at power plants in addition to other plant additions; consolidation of VIEs - ($6.1M)

F		Higher non-executive short term incentive compensation related to performance against operational and financial targets and adjustment to long-term incentive plan - ($12.9M); partially offset with 2009 expense related to settlement of EPA litigation - $4M

G		Due principally to recording lower gains on investments held in a trust to fund retirement benefits - ($3.6M); decrease in equity AFUDC - ($1.9M)

H		Increased interest expense as a result of consolidation of VIEs - ($12.2M) and increased interest expense on additional debt issued in 2009

I		Due principally to increased pretax income and increase in production tax credits and VIE accounting

J		Reflects tax settlement for past years related to sale of non-regulated investments

The Notes to the Condensed Consolidated Financial Statements in the company’s Annual Report on Form 10-K

for the period ended December 31, 2010 should be read in conjunction with this financial information.


		Westar Energy, Inc
Supplemental Data		Revenue, Sales and Energy Supply


	Three Months Ended December 31,
	2010			2009			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	130,957		$	128,927		$	2,030			1.6
Commercial		128,170			119,817			8,353			7.0
Industrial		75,637			68,332			7,305			10.7
Other retail		2,985			2,907			78			2.7
Provision for rate refunds		(5,225	)		(3,103	)		(2,122	)		(68.4	)

Total Retail Revenues		332,524			316,880			15,644			4.9
Tariff-based wholesale		62,260			63,845			(1,585	)		(2.5	)
Market-based wholesale		16,544			22,645			(6,101	)		(26.9	)
Transmission		36,016			31,548			4,468			14.2
Other		9,379			5,200			4,179			80.4

Total Revenues	$	456,723		$	440,118		$	16,605			3.8




	(Thousands of MWh)
Electricity Sales
Residential		1,394			1,460			(66	)		(4.5	)
Commercial		1,726			1,713			13			0.8
Industrial		1,303			1,224			79			6.5
Other retail		22			22			—			—

Total Retail		4,445			4,419			26			0.6

Tariff-based wholesale		1,346			1,511			(165	)		(10.9	)
Market-based wholesale		563			699			(136	)		(19.5	)

Total wholesale		1,909			2,210			(301	)		(13.6	)

Total Electricity Sales		6,354			6,629			(275	)		(4.1	)


	(Dollars per MWh)
Total retail	$	74.81		$	71.71		$	3.10			4.3
Tariff-based wholesale	$	46.26		$	42.25		$	4.01			9.5
Market-based wholesale	$	29.39		$	32.40		$	(3.01	)		(9.3	)



	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	103,614		$	116,186		$	(12,572	)		(10.8	)
Purchased power		19,694			19,029			665			3.5

Subtotal		123,308			135,215			(11,907	)		(8.8	)
Emissions allowances, VIE and miscellaneous		297			(701	)		998			142.4
Fuel expense recovery (RECA)		963			(2,272	)		3,235			142.4

Total fuel and purchased power expense	$	124,568		$	132,242		$	(7,674	)		(5.8	)


	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		240			301			(61	)		(20.3	)
Coal		4,800			5,509			(709	)		(12.9	)
Nuclear		966			632			334			52.8
Wind		117			105			12			11.4

Subtotal electricity generated		6,123			6,547			(424	)		(6.5	)
Purchased		616			491			125			25.5

Total Electricity Supply		6,739			7,038			(299	)		(4.2	)


	(Dollars per MWh)
Average cost of fuel used for generation	$	16.92		$	17.75		$	(0.83	)		(4.7	)
Average cost of purchased power	$	31.97		$	38.76		$	(6.79	)		(17.5	)
Average cost of fuel and purchased power	$	18.30		$	19.21		$	(0.91	)		(4.7	)



Degree Days

	2010			2009 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		27			3			24			800.0
Actual compared to 20 year average		27			34			(7	)		(20.6	)
Heating
Actual compared to last year		1,714			2,026			(312	)		(15.4	)
Actual compared to 20 year average		1,714			1,889			(175	)		(9.3	)


		Westar Energy, Inc
Supplemental Data		Revenue, Sales and Energy Supply


	Twelve Months Ended December 31,
	2010			2009			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	661,177		$	576,896		$	84,281			14.6
Commercial		572,062			529,847			42,215			8.0
Industrial		318,249			291,754			26,495			9.1
Other retail		11,961			11,521			440			3.8
Provision for rate refunds		(24,664	)		(30,037	)		5,373			17.9

Total Retail Revenues		1,538,785			1,379,981			158,804			11.5
Tariff-based wholesale		246,195			232,003			14,192			6.1
Market-based wholesale		88,474			76,266			12,208			16.0
Transmission		144,513			132,450			12,063			9.1
Other		38,204			37,531			673			1.8

Total Revenues	$	2,056,171		$	1,858,231		$	197,940			10.7




	(Thousands of MWh)
Electricity Sales
Residential		6,957			6,404			553			8.6
Commercial		7,519			7,235			284			3.9
Industrial		5,468			5,145			323			6.3
Other retail		89			88			1			1.1

Total Retail		20,033			18,872			1,161			6.2

Tariff-based wholesale		6,074			6,131			(57	)		(0.9	)
Market-based wholesale		2,638			2,657			(19	)		(0.7	)

Total wholesale		8,712			8,788			(76	)		(0.9	)

Total Electricity Sales		28,745			27,660			1,085			3.9


	(Dollars per MWh)
Total retail	$	76.81		$	73.12		$	3.69			5.0
Tariff-based wholesale	$	40.53		$	37.84		$	2.69			7.1
Market-based wholesale	$	33.54		$	28.70		$	4.84			16.9



	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	513,710		$	470,885		$	42,825			9.1
Purchased power		79,492			60,874			18,618			30.6

Subtotal		593,202			531,759			61,443			11.6
Emissions allowances, VIE and miscellaneous		712			(6,281	)		6,993			111.3
Fuel expense recovery (RECA)		(10,553	)		9,386			(19,939	)		(212.4	)

Total fuel and purchased power expense	$	583,361		$	534,864		$	48,497			9.1


	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		1,922			1,878			44			2.3
Coal		21,440			21,210			230			1.1
Nuclear		4,491			4,121			370			9.0
Wind		453			288			165			57.3

Subtotal electricity generated		28,306			27,497			809			2.9
Purchased		2,194			1,709			485			28.4

Total Electricity Supply		30,500			29,206			1,294			4.4


	(Dollars per MWh)
Average cost of fuel used for generation	$	18.15		$	17.12		$	1.03			6.0
Average cost of purchased power	$	36.23		$	35.62		$	0.61			1.7
Average cost of fuel and purchased power	$	19.45		$	18.21		$	1.24			6.8



Degree Days

	2010			2009 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		1,974			1,344			630			46.9
Actual compared to 20 year average		1,974			1,579			395			25.0
Heating
Actual compared to last year		4,713			4,776			(63	)		(1.3	)
Actual compared to 20 year average		4,713			4,825			(112	)		(2.3	)

Westar Energy, Inc.

Capitalization


	December 31, 2010				December 31, 2009
	(Dollars in Thousands)
Current maturities of long-term debt	$	61			$	1,345
Current maturities of long-term debt of VIEs		30,155				—
Long-term debt, net		2,490,871				2,490,734
Long-term debt of variable interest entities, net		278,162				—

Total debt		2,799,249	53.7	%		2,492,079	52.4	%
Preferred		21,436	0.4	%		21,436	0.4	%
Common equity		2,382,867	45.8	%		2,245,349	47.2	%
Noncontrolling interests		6,070	0.1	%		—	0.0	%

Total capitalization	$	5,209,622	100.0	%	$	4,758,864	100.0	%


GAAP Book value per share	$	21.25			$	20.59
Period end shares outstanding (in thousands)		112,128				109,072

Outstanding long-term debt table


	CUSIP		December 31, 2010			December 31, 2009
			(Dollars in Thousands)
Westar Energy:
First Mortgage Bond series:
6.00% Series due July 2014		95709TAA8	$	250,000		$	250,000
5.15% Series due January 2017		95709TAB6		125,000			125,000
5.95% Series due January 2035		95709TAC4		125,000			125,000
5.10% Series due July 2020		95709TAD2		250,000			250,000
5.875% Series due July 2036		95709TAE0		150,000			150,000
6.10% Series due May 2047		95709T704		150,000			150,000
8.625% Series due December 2018		95709TAG5		300,000			300,000

				1,350,000			1,350,000
Pollution control bond series:
Variable series due April 2032 (Wamego)		933623BN9		30,500			30,500
Variable series due April 2032 (St Marys)		792609AF6		45,000			45,000
5.0% Series due February 2033 (Wamego)		933623BQ2		57,530			57,760

				133,030			133,260
Other long-term debt:
4.36% Equipment financing loan due 2011				61			1,406

				61			1,406

Total Westar Energy				1,483,091			1,484,666

KGE
First mortgage bond series:
6.53% Series due December 2037		485260BJ1		175,000			175,000
6.15% Series due May 2023		485260B@1		50,000			50,000
6.64%Series due May 2038		485260B#9		100,000			100,000
6.70%Series due June 2019		U24448AB5		300,000			300,000

				625,000			625,000
Pollution control bond series:
5.3% Series due June 2031		121825BW2		108,600			108,600
5.3% Series due June 2031		933623BR0		18,900			18,900
4.85% Series due June 2031		121825CB7		50,000			50,000
5.10% Series due March 2023		502828AH9		13,343			13,463
Variable rate series due April 2027 (LaCygne)		502828AJ5		21,940			21,940
Variable rate series due April 2032 (St Marys)		792609AE9		14,500			14,500
Variable rate series due April 2032 (Wamego)		933623BM1		10,000			10,000
5.6% Series due June 2031		121825CD3		50,000			50,000
6.0% Series due June 2031		121825CE1		50,000			50,000
5.0% Series due June 2031		121825CF8		50,000			50,000

				387,283			387,403

Total KGE				1,012,283			1,012,403

Total long-term debt				2,495,374			2,497,069


Unamortized debt discount				(4,442	)		(4,990	)
Long-term debt due within one year				(61	)		(1,345	)

Total long-term debt, net			$	2,490,871		$	2,490,734

Westar Energy, Inc.

GAAP to Non-GAAP Reconciliation

Fuel and purchased power costs fluctuate with electricity sales and unit costs. As permitted by regulators, prices are adjusted to reflect changes in fuel and purchased power costs, and accordingly changes to these costs have a minimal impact on net income. For this reason, Westar management believes that gross margin is a useful measure for understanding changes in operating performance from one period to the next. Gross margin is calculated as total revenues less the sum of fuel and purchased power costs and SPP network transmission costs. SPP network transmission costs are included as a component of gross margin because these costs reflect the costs of providing network transmission service, and a significant component of transmission revenue is recognized when providing this service.

Operating and maintenance expense includes SPP network transmission costs (SPP NITS). The SPP network transmission costs are included in gross margin for the reasons shown above, and are therefore excluded from operating and maintenance expense w/o SPP NITS used to reconcile earnings from the comparable prior year period to the earnings for the current period. Westar management believes this measurement is useful for understanding changes in operating performance from one period to the next. Operating and maintenance expense w/o SPP NITS is calculated by subtracting the SPP network transmission costs from operating and maintenance expense.

The calculations of gross margin and operating and maintenance expense w/o SPP NITS for the three and twelve months ended December 31, 2010 and 2009 are shown in the table below. The table also includes a reconciliation of gross margin to income from operations for both periods. Income from operations is the GAAP financial measure most directly comparable to gross margin. Operating and maintenance expense is the GAAP financial measure most directly comparable to operating and maintenance expense w/o SPP NITS.


	Three Months Ended December 31,									Twelve Months Ended December 31,
	2010			2009			Change			2010			2009			Change
	(Dollars In Thousands)									(Dollars In Thousands)
Revenues
Residential	$	130,957		$	128,927		$	2,030		$	661,177		$	576,896		$	84,281
Commercial		128,170			119,817			8,353			572,062			529,847			42,215
Industrial		75,637			68,332			7,305			318,249			291,754			26,495
Other retail		(2,240	)		(196	)		(2,044	)		(12,703	)		(18,516	)		5,813

Total Retail Revenues		332,524			316,880			15,644			1,538,785			1,379,981			158,804
Wholesale		78,804			86,490			(7,686	)		334,669			308,269			26,400
Transmission		36,016			31,548			4,468			144,513			132,450			12,063
Other		9,379			5,200			4,179			38,204			37,531			673

Total Revenues		456,723			440,118			16,605			2,056,171			1,858,231			197,940
Less: Fuel and purchased power expense		124,568			132,242			(7,674	)		583,361			534,864			48,497
SPP network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048

Gross Margin	$	302,452		$	281,787		$	20,665		$	1,356,361		$	1,217,966		$	138,395


Gross margin	$	302,452		$	281,787		$	20,665		$	1,356,361		$	1,217,966		$	138,395
Add: SPP network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048
Less: Operating and maintenance expense		150,825			124,658			26,167			520,409			516,930			3,479
Depreciation and amortization expense		69,982			64,990			4,992			271,937			251,534			20,403
Selling, general and administrative expense		63,108			56,421			6,687			207,607			199,961			7,646

Income from operations	$	48,240		$	61,807		$	(13,567	)	$	472,857		$	354,942		$	117,915


Operating and maintenance expense	$	150,825		$	124,658		$	26,167		$	520,409		$	516,930		$	3,479
Less: SPP Network transmission costs		29,703			26,089			3,614			116,449			105,401			11,048

Operating and maintenance expense w/o SPP NITS	$	121,122		$	98,569		$	22,553		$	403,960		$	411,529		$	(7,569	)

Westar Energy, Inc.

Capital Expenditure Forecast

2011 – 2013


	Actual		Forecast
	2010		2011		2012		2013		2011 - 2013
Generation replacements and other	$	83,409	$	130,400	$	146,400	$	150,600	$	427,399
Westar Environmental		107,726		181,100		200,100		154,300		535,500
La Cygne Environmental		3,945		63,000		171,000		195,100		429,100
Nuclear Fuel		35,267		25,100		30,100		41,700		96,900
Transmission (a)		197,316		192,700		161,300		164,100		518,100
Distribution										—
New customer, replacements and other		78,658		95,900		102,200		106,400		304,500
Smart grid (b)		10,295		13,600						13,600
Other		23,460		19,800		15,000		11,000		45,800

Total	$	540,076	$	721,600	$	826,100	$	823,200	$	2,370,900


(a) In 2011, 2012 and 2013, Westar plans to incur additional expenditures related to the Prairie Wind Transmission joint venture

			$	2,700	$	22,500	$	13,800	$	39,000

(b) net of DOE matching grant

2011 Earnings Guidance

Exhibit 99.3

LOGO

Westar Energy, Inc.

2011 Earnings Guidance


Westar Energy 2011 earnings per share range			$1.65 - $1.80

Key assumptions for 2011:

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Weather adjusted total retail sales growth —1%

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Total wholesale sales decrease —10%, most of which is credited to retail revenue

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Transmission revenue increase of —$17 million effective first quarter

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O&M expense increase —2%, excluding —$10 million increase for SPP transmission expense

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SG&A expense flat to decrease 1%

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Depreciation and amortization expense increases —$15 million

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Annual adjustment to Environmental Cost Recovery Rider of —$10 million effective June 1

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Includes $0.10 per share of actuarially-assumed COLI proceeds

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Equity AFUDC increase of —$2 million

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Interest expense increase of —$5 million reflecting both assumed rate and balance changes

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Effective tax rate of approximately 29-31%

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Funding 2011 construction program:

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issuance of 12.7 million shares already priced in 2010 under forward sale agreements

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borrowing from revolving credit facilities and/or issuance of debt

The effects of the key assumptions are not necessarily independent of one another, and the combination of effects can cause individual impacts smaller or larger than the ranges indicated.

Forward-looking statements: Certain matters discussed in this document are “forward-looking statements.” The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words like “believe,” “anticipate,” “target,” “expect,” “pro forma,” “estimate,” “intend,” “guidance” or words of similar meaning. Forward-looking statements describe future plans, objectives, expectations or goals. Although Westar Energy believes that its expectations are based on reasonable assumptions, all forward-looking statements involve risk and uncertainty. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as (1) those discussed in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2010 (a) under the heading, “Forward-Looking Statements,” (b) in ITEM 1. Business, (c) in ITEM 1A. Risk Factors, (d) in ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (e) in ITEM 8. Financial Statements and Supplementary Data: Notes 13 and 15; and (2) other factors discussed in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date such statement was made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made.