SEC Filing | Evergy, Inc.

Westar Energy, Inc.

Date: February 23, 2012

/s/ Larry D. Irick

Larry D. Irick

Vice President, General Counsel and

Corporate Secretary

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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 23, 2012

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 23, 2012, we issued a press release announcing our earnings for the period ended December 31, 2011. A copy of our February 23, 2012 press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. We are also including our 2011 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 7.01.

Regulation FD Disclosure.

We are furnishing our 2012 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 23, 2012
		Exhibit 99.2		2011 Fourth Quarter and Year-End Earnings package
		Exhibit 99.3		2012 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.

EXHIBIT INDEX


Exhibit Number		Description of Exhibit

Exhibit 99.1		Press Release dated February 23, 2012
Exhibit 99.2		2011 Fourth Quarter and Year-End Earnings package
Exhibit 99.3		2012 Earnings Guidance

Press Release dated February 23, 2012

Exhibit 99.1

Media contact:

Gina Penzig,

director, 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 2011 RESULTS

Board declares 33 cent quarterly dividend

TOPEKA, Kan., Feb 23, 2012 — Westar Energy, Inc. (NYSE:WR) today announced earnings for 2011 were $229 million, or $1.95 per share, compared with $203 million, or $1.81 per share, for 2010. Earnings for 2011 include the benefits of reversing previously recorded accruals and a gain on the sale of a non-utility investment. Absent these two items, 2011 ongoing earnings per share were unchanged from the prior year. Earnings were $19 million, or $0.16 per share, for the fourth quarter 2011 compared with earnings of $5 million, or $0.04 per share, for the fourth quarter 2010.

Following is a reconciliation of GAAP to ongoing (non-GAAP) earnings per share:


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2011		2010		Change		2011		2010		Change
Basic earnings per share	$	0.16	$	0.04	$	0.12	$	1.95	$	1.81	$	0.14
Less adjustments for:
Reversal of accruals related to legal settlements (a)		—		—		—		0.08		—		0.08
Gain on sale of non-utility investment		—		—		—		0.06		—		0.06

Ongoing (non-GAAP) earnings per share	$	0.16	$	0.04	$	0.12	$	1.81	$	1.81	$	(0.00	)

(a)	Per share amounts adjusted for income tax and legal expenses related to legal settlements

The primary drivers for the $10 million increase in full year 2011 ongoing net income was an increase in revenues offset somewhat by increased operating expenses. The increased operating expenses include higher network transmission costs, higher maintenance and

Page 1 of 4


Westar Energy announces 2011 results				Page 2 of 4

regulatory compliance costs at the Wolf Creek generating station, increased property taxes, increased tree trimming expense and higher depreciation expense. Ongoing earnings per share were unchanged from 2010 because the company issued additional shares to fund its investment in utility infrastructure.

The primary drivers for increased net income for the fourth quarter 2011 compared with the same period in 2010 were reduced operating and maintenance expenses lower compensation expense and reduced legal expenses.

Reconciliation of GAAP to ongoing (non-GAAP) net income:


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2011		2010		Change		2011		2010		Change
	(Dollars in Millions)						(Dollars in Millions)
Net Income attributable to common stock	$	19.3	$	4.9	$	14.4	$	229.3	$	202.9	$	26.4
Less adjustments for:
Reversal of accruals related to legal settlements (a)		—		—		—		8.9		—		8.9
Gain on sale of non-utility investment		—		—		—		7.2		—		7.2

Ongoing (non-GAAP) net income	$	19.3	$	4.9	$	14.4	$	213.2	$	202.9	$	10.3

(a)	Adjusted for income taxes and legal expenses related to legal settlement

Earnings Guidance

The company issued earnings guidance for 2012 of $1.85 to $2.00 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.

Dividend Increase

The Board of Directors today declared a quarterly dividend of 33 cents per share payable Apr. 2, 2012 on the company’s common stock. The new dividend reflects a 3 percent increase over the company’s previous quarterly dividend of 32 cents per share, and results in an indicated annual rate of $1.32 per share.


Westar Energy announces 2011 results				Page 3 of 4

The board also declared regular quarterly dividends on the company’s 4.25 percent, 4.5 percent and 5 percent series preferred stocks payable Apr. 1, 2012.

The dividends are payable to shareholders of record as of Mar. 9, 2012.

Conference Call and Additional Company Information

Westar Energy management will host a conference call Friday, Feb. 24 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 800-638-4817, participant code 56020630. 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, supplemental materials with detailed fourth quarter and year end 2011 financial information, the company’s annual report on Form 10-K for the period ended Dec. 31, 2011 and other filings the company has made with the Securities and Exchange Commission are available on the company’s website at www.WestarEnergy.com.

Westar Energy, Inc. (NYSE: WR) is the largest electric utility in Kansas, providing electric service to about 688,000 customers in the state. Westar Energy has about 7,100 megawatts of electric generating resources 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.

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, 2011 (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 2011 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,
	2011			2010			Change			2011			2010			Change
Retail	$	349,953		$	332,524		$	17,429		$	1,636,931		$	1,538,785		$	98,146
Wholesale		89,752			78,804			10,948			346,948			334,669			12,279
Transmission		39,158			36,016			3,142			154,569			144,513			10,056
Other		7,365			9,379			(2,014	)		32,543			38,204			(5,661	)

Total Revenues		486,228		$	456,723			29,505			2,170,991			2,056,171			114,820
Fuel and purchased power		144,096			124,568			19,528			630,793			583,361			47,432
Operating and maintenance		145,323			150,825			(5,502	)		557,752			520,409			37,343
Depreciation and amortization		71,771			69,982			1,789			285,322			271,937			13,385
Selling, general and administrative		52,463			63,108			(10,645	)		184,695			207,607			(22,912	)

Total Operating Expenses		413,653			408,483			5,170			1,658,562			1,583,314			75,248

Income from Operations		72,575			48,240			24,335			512,429			472,857			39,572

Other income (expense)		(958	)		(358	)		(600	)		(445	)		(4,260	)		3,815
Interest expense		41,779			43,080			(1,301	)		172,460			174,941			(2,481	)
Income tax expense (benefit)		8,532			(1,748	)		10,280			103,344			85,032			18,312

Net Income		21,306			6,550			14,756			236,180			208,624			27,556
Less: Net income attributable to noncontrolling interests		1,729			1,389			340			5,941			4,728			1,213

Net income attributable to Westar Energy		19,577			5,161			14,416			230,239			203,896			26,343
Preferred dividends		242			242			—			970			970			—

Net Income Attributable to Common Stock	$	19,335		$	4,919		$	14,416		$	229,269		$	202,926		$	26,343

Earnings per common share, basic	$	0.16		$	0.04		$	0.12		$	1.95		$	1.81		$	0.14

Average equivalent common shares outstanding		121,880			112,348			9,532			116,891			111,629			5,262

Dividend declared per share	$	0.32		$	0.31		$	0.01		$	1.28		$	1.24		$	0.04

2011 Fourth Quarter and Year-End Earnings package

Exhibit 99.2

Westar Energy, Inc

Fourth Quarter and Year-end 2011 Earnings

Released February 23, 2012


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
Supplemental slides		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, 2011 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,
	2011			2010			Change			% Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	136,604		$	130,957		$	5,647			4.3
Commercial		134,175			128,170			6,005			4.7
Industrial		79,379			75,637			3,742			4.9
Other retail		(205	)		(2,240	)		2,035			90.8

Total Retail Revenues		349,953			332,524			17,429			5.2
Wholesale		89,752			78,804			10,948			13.9
Transmission		39,158			36,016			3,142			8.7
Other		7,365			9,379			(2,014	)		(21.5	)

Total Revenues		486,228			456,723			29,505			6.5

OPERATING EXPENSES:
Fuel and purchased power		144,096			124,568			19,528			15.7
Operating and maintenance		145,323			150,825			(5,502	)		(3.6	)
Depreciation and amortization		71,771			69,982			1,789			2.6
Selling, general and administrative		52,463			63,108			(10,645	)		(16.9	)

Total Operating Expenses		413,653			408,483			5,170			1.3

INCOME FROM OPERATIONS		72,575			48,240			24,335			50.4

OTHER INCOME (EXPENSE):
Investment income		3,046			2,676			370			13.8
Other income		441			1,577			(1,136	)		(72.0	)
Other expense		(4,445	)		(4,611	)		166			3.6

Total Other Expense		(958	)		(358	)		(600	)		(167.6	)

Interest expense		41,779			43,080			(1,301	)		(3.0	)

INCOME BEFORE INCOME TAXES		29,838			4,802			25,036			521.4
Income tax expense (benefit)		8,532			(1,748	)		10,280			588.1

NET INCOME		21,306			6,550			14,756			225.3
Less: Net income attributable to noncontrolling interests		1,729			1,389			340			24.5

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		19,577			5,161			14,416			279.3
Preferred dividends		242			242			—			—

NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	19,335		$	4,919		$	14,416			293.1


Earnings per common share, basic	$	0.16		$	0.04		$	0.12			300.0

Average equivalent common shares outstanding (in thousands)		121,880			112,348			9,532			8.5

DIVIDENDS DECLARED PER COMMON SHARE	$	0.32		$	0.31		$	0.01			3.2

Effective income tax rate		28.59	%		-36.40	%

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

for the period ended December 31, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Statements of Income

(Unaudited)


	Twelve Months Ended December 31,
	2011			2010			Change			%Change
	(In Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	693,388		$	661,177		$	32,211			4.9
Commercial		604,626			572,062			32,564			5.7
Industrial		347,881			318,249			29,632			9.3
Other retail		(8,964	)		(12,703	)		3,739			29.4

Total Retail Revenues		1,636,931			1,538,785			98,146			6.4
Wholesale		346,948			334,669			12,279			3.7
Transmission		154,569			144,513			10,056			7.0
Other		32,543			38,204			(5,661	)		(14.8	)

Total Revenues		2,170,991			2,056,171			114,820			5.6

OPERATING EXPENSES:
Fuel and purchased power		630,793			583,361			47,432			8.1
Operating and maintenance		557,752			520,409			37,343			7.2
Depreciation and amortization		285,322			271,937			13,385			4.9
Selling, general and administrative		184,695			207,607			(22,912	)		(11.0	)

Total Operating Expenses		1,658,562			1,583,314			75,248			4.8

INCOME FROM OPERATIONS		512,429			472,857			39,572			8.4

OTHER INCOME (EXPENSE):
Investment income		9,301			7,026			2,275			32.4
Other income		8,652			5,369			3,283			61.1
Other expense		(18,398	)		(16,655	)		(1,743	)		(10.5	)

Total Other Expense		(445	)		(4,260	)		3,815			89.6

Interest expense		172,460			174,941			(2,481	)		(1.4	)

INCOME BEFORE INCOME TAXES		339,524			293,656			45,868			15.6
Income tax expense		103,344			85,032			18,312			21.5

NET INCOME		236,180			208,624			27,556			13.2
Less: Net income attributable to nonontrolling interests		5,941			4,728			1,213			25.7

NET INCOME ATTRIBUTABLE TO WESTAR ENERGY		230,239			203,896			26,343			12.9
Preferred dividends		970			970			—			—

NET INCOME ATTRIBUTABLE TO COMMON STOCK	$	229,269		$	202,926		$	26,343			13.0


Earnings per common share, basic	$	1.95		$	1.81		$	0.14			7.7


Average equivalent common shares outstanding (in thousands)		116,891			111,629			5,262			4.7

DIVIDENDS DECLARED PER COMMON SHARE	$	1.28		$	1.24		$	0.04			3.2

Effective income tax rate		30.44	%		28.96	%

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

for the period ended December 31, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

Consolidated Balance Sheets

(Dollars in Thousands, except par values)

(Unaudited)


	December 31, 2011		December 31, 2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,539	$	928
Accounts receivable, net		226,428		227,700
Fuel inventory and supplies		229,118		206,867
Energy marketing contracts		8,180		13,005
Taxes receivable		5,334		16,679
Deferred tax assets		394		30,248
Prepaid expenses		13,078		12,413
Regulatory assets		123,818		73,480
Other		23,696		20,289

Total Current Assets		633,585		601,609

PROPERTY, PLANT AND EQUIPMENT, NET		6,411,922		5,964,439

PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET		333,494		345,037

OTHER ASSETS:
Regulatory assets		922,272		787,585
Nuclear decommissioning trust		130,270		126,990
Other		251,308		253,978

Total Other Assets		1,303,850		1,168,553

TOTAL ASSETS	$	8,682,851	$	8,079,638
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	—	$	61
Current maturities of long-term debt of variable interest entities		28,114		30,155
Short-term debt		286,300		226,700
Accounts payable		187,428		187,954
Accrued taxes		52,451		45,534
Energy marketing contracts		6,353		9,670
Accrued interest		77,437		77,771
Regulatory liabilities		40,857		33,779
Other		148,347		171,222

Total Current Liabilities		827,287		782,846

LONG-TERM LIABILITIES:
Long-term debt, net		2,491,109		2,490,871
Long-term debt of variable interest entities, net		249,283		278,162
Deferred income taxes		1,110,463		1,102,625
Unamortized investment tax credits		164,175		101,345
Regulatory liabilities		230,530		233,295
Accrued employee benefits		592,617		483,769
Asset retirement obligations		142,508		125,999
Other		74,138		66,888

Total Long-Term Liabilities		5,054,823		4,882,954

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


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 275,000,000 and 150,000,000 shares, respectively; issued and outstanding 125,698,396 and 112,128,068 shares, respectively		628,492		560,640
Paid-in capital		1,639,503		1,398,580
Retained earnings		501,216		423,647

Total Westar Energy Shareholders' Equity		2,790,647		2,404,303

Noncontrolling Interests		10,094		6,070

Total Equity		2,800,741		2,410,373

TOTAL LIABILITIES AND EQUITY	$	8,682,851	$	8,079,638

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

for the period ended December 31, 2011 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,
	2011			2010
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	236,180		$	208,624
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		285,322			271,937
Amortization of nuclear fuel		21,151			25,089
Amortization of deferred regulatory gain from sale-leaseback		(5,495	)		(5,495	)
Amortization of corporate-owned life insurance		25,650			20,650
Non-cash compensation		8,422			11,373
Net changes in energy marketing assets and liabilities		926			(1,284	)
Net deferred income taxes and credits		111,723			120,169
Stock based compensation excess tax benefits		(1,180	)		(641	)
Allowance for equity funds used during construction		(5,550	)		(3,104	)
Gain on sale of non-utility investment		(7,246	)		—
Gain on settlement of contractual obligations with former officers		(22,039	)		—
Changes in working capital items:
Accounts receivable		(1,638	)		(11,434	)
Fuel inventory and supplies		(21,485	)		(12,266	)
Prepaid expenses and other		(50,138	)		8,475
Accounts payable		3,008			30,330
Accrued taxes		18,633			27,565
Other current liabilities		(107,012	)		(80,660	)
Changes in other assets		(10,167	)		(42,544	)
Changes in other liabilities		(16,369	)		40,918

Cash flows from operating activities		462,696			607,702


CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment		(697,451	)		(540,076	)
Purchase of securities within trusts		(49,737	)		(192,350	)
Sale of securities within trusts		47,534			191,603
Investment in corporate-owned life insurance		(19,214	)		(19,162	)
Proceeds from investment in corporate-owned life insurance		1,295			2,204
Proceeds from federal grant		8,561			3,180
Investment in affiliated company		(1,943	)		(280	)
Proceeds from sale of non-utility investment		9,246			—
Investment in non-utitlity investments		(3,656	)		—
Other investing activities		3,849			(1,164	)

Cash flows used in investing activities		(701,516	)		(556,045	)


CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net		54,081			(16,060	)
Retirements of long-term debt		(371	)		(1,695	)
Retirements of long-term debt of variable interest entities		(30,159	)		(28,610	)
Repayment of capital leases		(2,233	)		(2,981	)
Borrowings against cash surrender value of corporate-owned life insurance		67,562			74,134
Repayment of borrowings against cash surrender value of corporate-owned life insurance		(3,421	)		(3,430	)
Stock based compensation excess tax benefits		1,180			641
Issuance of common stock		294,942			54,651
Distributions to shareholders of noncontrolling interests		(1,917	)		(2,093	)
Cash dividends paid		(138,233	)		(129,146	)

Cash flows from (used in) financing activities		241,431			(54,589	)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		2,611			(2,932	)

CASH AND CASH EQUIVALENTS:
Beginning of period		928			3,860

End of period	$	3,539		$	928

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

for the period ended December 31, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

4th Quarter 2011 vs. 2010

Earnings Variances


				Change
	($ per share)			(Dollars in thousands)
2010 earnings attributable to common stock	$	0.04		$	4,919
	*Favorable / (Unfavorable)*
Retail					17,429		A
Wholesale					10,948		B
Transmission					3,142
Other revenues					(2,014	)
Fuel and purchased power					(19,528	)	C
SPP network transmission costs					(3,838	)

Gross Margin					6,139
Operating and maintenance w/o SPP NITS					9,340		D
Depreciation and amortization					(1,789	)	E
Selling, general and administrative					10,645		F
Other income (expense)					(600	)
Interest expense					1,301
Income tax expense					(10,280	)
Net income attributable to noncontrolling interests					(340	)
Change in shares outstanding		(0.01	)

2011 earnings attributable to common stock	$	0.16		$	19,335

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

A	Due principally to price increases; MWh increased 0.4 percent (see page 7 for changes by customer class)

B	Due to increase in demand; MWh increased 26 percent (see page 7 for changes by customer class)

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

D	Due principally to: reduced maintenance expense for distribution system, primarily tree trimming — $5.2M; reduced maintenance expense and outages at power plants — $5.2M

E	Higher plant balances associated with additions at power plants, including air quality controls equipment

F	Decrease due principally to: reduced variable compensation related to performance against operational and financial targets - $6.4M; reduced legal costs — $2.3M

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

for the period ended December 31, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc.

YTD December 2011 vs. 2010

Earnings Variances


				Change
	($ per share)			(Dollars in thousands)
2010 earnings attributable to common stock	$	1.81		$	202,926
	*Favorable / (Unfavorable)*
Retail					98,146		A
Wholesale					12,279		B
Transmission					10,056
Other revenues					(5,661	)
Fuel and purchased power					(47,432	)	C
SPP network transmission costs					(15,715	)

Gross Margin					51,673
Operating and maintenance w/o SPP NITS					(21,628	)	D
Depreciation and amortization					(13,385	)	E
Selling, general and administrative					22,912		F
Other income (expense)					3,815		G
Interest expense					2,481
Income tax expense					(18,312	)
Net income attributable to noncontrolling interests					(1,213	)
Change in shares outstanding		(0.10	)

2011 earnings attributable to common stock	$	1.95		$	229,269

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

A	Due principally to price increases; MWh increased 1 percent (see page 8 for changes by customer class)

B	Due principally to higher average market prices; MWh decreased 6 percent reflecting less availability of generation for wholesale sales (see page 8 for changes by customer class)

C	Increase due principally to higher average unit cost of generation which more than offset a decrease in electricity generated

Increase due principally to: increase in property tax expense ( which is largely offset in revenues via property tax surcharge) — ($7M); increased amortization of Wolf Creek refuel and maintenance outage cost — ($8M); higher regulatory compliance costs at Wolf Creek — ($5M); recording in 2010 a reduction in liability for cost associated with sale of assets many years ago — ($5M); increased maintenance of distribution system, primarily tree trimming — ($1.4M); and a decrease in expenses for completed storm amortizations — $8M

E	Higher plant balances associated with additions of transmission facilities and at power plants, including air quality controls equipment

Decrease due principally to: reversal of accrued liabilities related to legal settlements — $22M; reduced variable compensation related to performance against operational and financial targets — $7.1M; increased amortization of deferred energy efficiency expenses (which is largely offset with retail revenue increase) — ($3.6M); and higher legal expenses related to the legal settlements — ($3.2M)

G	Increase is due primarily to: recording a gain on sale of non—utility investment — $7.2M; increase in equity AFUDC — $2.4M; recording a gain on sale of No. 6 fuel oil — $1.2M; and recording a smaller mark-to-market gain on investments in a trust to fund retirement benefits — ($4M)

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

for the period ended December 31, 2011 should be read in conjunction with this financial information.

Westar Energy, Inc

Revenue, Sales and Energy Supply

Supplemental Data


	Three Months Ended December 31,
	2011			2010			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	136,604		$	130,957		$	5,647			4.3
Commercial		134,175			128,170			6,005			4.7
Industrial		79,379			75,637			3,742			4.9
Other retail		3,046			2,985			61			2.0
Provision for rate refunds		(3,251	)		(5,225	)		1,974			37.8

Total Retail Revenues		349,953			332,524			17,429			5.2
Tariff-based wholesale		60,218			62,260			(2,042	)		(3.3	)
Market-based wholesale		29,534			16,544			12,990			78.5
Transmission		39,158			36,016			3,142			8.7
Other		7,365			9,379			(2,014	)		(21.5	)

Total Revenues	$	486,228		$	456,723		$	29,505			6.5


	(Thousands of MWh)
Electricity Sales
Residential		1,407			1,394			13			0.9
Commercial		1,748			1,726			22			1.3
Industrial		1,285			1,303			(18	)		(1.4	)
Other retail		22			22			—			—

Total Retail		4,462			4,445			17			0.4

Tariff-based wholesale		1,393			1,346			47			3.5
Market-based wholesale		1,015			563			452			80.3

Total wholesale		2,408			1,909			499			26.1

Total Electricity Sales		6,870			6,354			516			8.1


	(Dollars per MWh)
Total retail	$	78.43		$	74.81		$	3.62			4.8
Tariff-based wholesale	$	43.23		$	46.26		$	(3.03	)		(6.5	)
Market-based wholesale	$	29.10		$	29.39		$	(0.29	)		(1.0	)

	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	119,413		$	103,614		$	15,799			15.2
Purchased power		18,566			19,694			(1,128	)		(5.7	)

Subtotal		137,979			123,308			14,671			11.9
RECA recovery and other		6,117			1,260			4,857			385.5

Total fuel and purchased power expense	$	144,096		$	124,568		$	19,528			15.7


	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		82			240			(158	)		(65.8	)
Coal		5,198			4,800			398			8.3
Nuclear		1,248			966			282			29.2
Wind		128			117			11			9.4

Subtotal electricity generated		6,656			6,123			533			8.7
Purchased		565			616			(51	)		(8.3	)

Total Electricity Supply		7,221			6,739			482			7.2


	(Dollars per MWh)
Average cost of fuel used for generation	$	17.94		$	16.92		$	1.02			6.0
Average cost of purchased power	$	32.86		$	31.97		$	0.89			2.8
Average cost of fuel and purchased power	$	19.11		$	18.30		$	0.81			4.4

Degree Days
	2011			2010 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		52			27			25			92.6
Actual compared to 20 year average		52			39			13			33.3
Heating
Actual compared to last year		1,692			1,715			(23	)		(1.3	)
Actual compared to 20 year average		1,692			1,808			(116	)		(6.4	)

Westar Energy, Inc

Revenue, Sales and Energy Supply

Supplemental Data


	Twelve Months Ended December 31,
	2011			2010			Change			% Change
	(Dollars In Thousands)
Revenues
Residential	$	693,388		$	661,177		$	32,211			4.9
Commercial		604,626			572,062			32,564			5.7
Industrial		347,881			318,249			29,632			9.3
Other retail		12,252			11,961			291			2.4
Provision for rate refunds		(21,216	)		(24,664	)		3,448			14.0

Total Retail Revenues		1,636,931			1,538,785			98,146			6.4
Tariff-based wholesale		265,360			246,195			19,165			7.8
Market-based wholesale		81,588			88,474			(6,886	)		(7.8	)
Transmission		154,569			144,513			10,056			7.0
Other		32,543			38,204			(5,661	)		(14.8	)

Total Revenues	$	2,170,991		$	2,056,171		$	114,820			5.6


	(Thousands of MWh)
Electricity Sales
Residential		6,986			6,957			29			0.4
Commercial		7,573			7,519			54			0.7
Industrial		5,589			5,468			121			2.2
Other retail		88			89			(1	)		(1.1	)

Total Retail		20,236			20,033			203			1.0

Tariff-based wholesale		5,883			6,074			(191	)		(3.1	)
Market-based wholesale		2,332			2,638			(306	)		(11.6	)

Total wholesale		8,215			8,712			(497	)		(5.7	)

Total Electricity Sales		28,451			28,745			(294	)		(1.0	)


	(Dollars per MWh)
Total retail	$	80.89		$	76.81		$	4.08			5.3
Tariff-based wholesale	$	45.11		$	40.53		$	4.58			11.3
Market-based wholesale	$	34.99		$	33.54		$	1.45			4.3

	(Dollars In Thousands)
Fuel and Purchased Power
Fuel used for generation	$	556,771		$	513,710		$	43,061			8.4
Purchased power		91,851			79,492			12,359			15.5

Subtotal		648,622			593,202			55,420			9.3
RECA recovery and other		(17,829	)		(9,841	)		(7,988	)		(81.2	)

Total fuel and purchased power expense	$	630,793		$	583,361		$	47,432			8.1


	(Thousands of MWh)
Electricity Supply
Generated - Gas/oil		2,305			1,922			383			19.9
Coal		21,184			21,440			(256	)		(1.2	)
Nuclear		3,440			4,491			(1,051	)		(23.4	)
Wind		454			453			1			0.2

Subtotal electricity generated		27,383			28,306			(923	)		(3.3	)
Purchased		2,680			2,194			486			22.2

Total Electricity Supply		30,063			30,500			(437	)		(1.4	)


	(Dollars per MWh)
Average cost of fuel used for generation	$	20.33		$	18.15		$	2.18			12.0
Average cost of purchased power	$	34.27		$	36.23		$	(1.96	)		(5.4	)
Average cost of fuel and purchased power	$	21.58		$	19.45		$	2.13			11.0

Degree Days
	2011			2010 / 20 yr Avg			Change			% Change
Cooling
Actual compared to last year		2,119			1,975			144			7.3
Actual compared to 20 year average		2,119			1,624			495			30.5
Heating
Actual compared to last year		4,800			4,712			88			1.9
Actual compared to 20 year average		4,800			4,668			132			2.8

Westar Energy, Inc.

Capitalization


	December 31, 2011				December 31, 2010
	(Dollars in Thousands)
Current maturities of long-term debt	$	—			$	61
Current maturities of long-term debt of VIEs		28,114				30,155
Long-term debt, net		2,491,109				2,490,871
Long-term debt of variable interest entities, net		249,283				278,162

Total debt		2,768,506	49.7	%		2,799,249	53.7	%
Preferred		21,436	0.4	%		21,436	0.4	%
Common equity		2,769,211	49.7	%		2,382,867	45.8	%
Noncontrolling interests		10,094	0.2	%		6,070	0.1	%

Total capitalization	$	5,569,247	100.0	%	$	5,209,622	100.0	%

GAAP Book value per share	$	22.03			$	21.25
Period end shares outstanding (in thousands)		125,698				112,128

Outstanding long-term debt table


	CUSIP			December 31, 2011			December 31, 2010
				(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			57,245			57,530

					132,745			133,030
Other long-term debt:
4.36% Equipment financing loan due 2011					—			61

					—			61

Total Westar Energy					1,482,745			1,483,091
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			13,318			13,343
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

					387,258			387,283

Total KGE					1,012,258			1,012,283
Total long-term debt					2,495,003			2,495,374

Unamortized debt discount					(3,894	)		(4,442	)
Long-term debt due within one year					—			(61	)

Total long-term debt, net				$	2,491,109		$	2,490,871

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, 2011 and 2010 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,
	2011			2010			Change			2011			2010			Change
	(Dollars In Thousands)									(Dollars In Thousands)
Revenues
Residential	$	136,604		$	130,957		$	5,647		$	693,388		$	661,177		$	32,211
Commercial		134,175			128,170			6,005			604,626			572,062			32,564
Industrial		79,379			75,637			3,742			347,881			318,249			29,632
Other retail		(205	)		(2,240	)		2,035			(8,964	)		(12,703	)		3,739

Total Retail Revenues		349,953			332,524			17,429			1,636,931			1,538,785			98,146
Wholesale		89,752			78,804			10,948			346,948			334,669			12,279
Transmission		39,158			36,016			3,142			154,569			144,513			10,056
Other		7,365			9,379			(2,014	)		32,543			38,204			(5,661	)

Total Revenues		486,228			456,723			29,505			2,170,991			2,056,171			114,820
Less: Fuel and purchased power expense		144,096			124,568			19,528			630,793			583,361			47,432
SPP network transmission costs		33,541			29,703			3,838			132,164			116,449			15,715

Gross Margin	$	308,591		$	302,452		$	6,139		$	1,408,034		$	1,356,361		$	51,673


Gross margin	$	308,591		$	302,452		$	6,139		$	1,408,034		$	1,356,361		$	51,673
Add: SPP network transmission costs		33,541			29,703			3,838			132,164			116,449			15,715
Less: Operating and maintenance expense		145,323			150,825			(5,502	)		557,752			520,409			37,343
Depreciation and amortization expense		71,771			69,982			1,789			285,322			271,937			13,385
Selling, general and administrative expense		52,463			63,108			(10,645	)		184,695			207,607			(22,912	)

Income from operations	$	72,575		$	48,240		$	24,335		$	512,429		$	472,857		$	39,572

Operating and maintenance expense	$	145,323		$	150,825		$	(5,502	)	$	557,752		$	520,409		$	37,343
Less: SPP Network transmission costs		33,541			29,703			3,838			132,164			116,449			15,715

Operating and maintenance expense w/o SPP NITS	$	111,782		$	121,122		$	(9,340	)	$	425,588		$	403,960		$	21,628


% change O&M w/o SPP NITS								-7.7	%								5.4	%

Operating and maintenance expense w/o SPP NITS	$	111,782		$	121,122		$	(9,340	)	$	425,588		$	403,960		$	21,628
Selling, general and administrative expense		52,463			63,108			(10,645	)		184,695			207,607			(22,912	)

O&M and SGA w/o SPP NITS		164,245			184,230		$	(19,985	)		610,283			611,567		$	(1,284	)
								-10.8	%								-0.2	%

Reversal of accrual as result of legal settlements				$	—		$	—		$	(22,039	)	$	—		$	(22,039	)
Legal expenses related to settlements					—			—			7,812						7,812

Settlement reversal and exclude legal expense		—			—			—			(14,227	)		—			(14,227	)

Adjusted O&M & SGA	$	164,245		$	184,230		$	(19,985	)	$	624,510		$	611,567		$	12,943

								-10.8	%								2.1	%

Capital

Expenditure

Forecast

2012

2014

Actual

Forecast

Method of

Cost

2011

2012

2013

2014

2012 - 2014

Recovery

Generation replacements and other

132.8

159.8

172.3

164.6

496.7

GRC

Westar environmental

153.4

219.3

121.7

107.4

448.4

ECRR

La Cygne environmental

66.5

215.9

208.9

123.7

548.5

GRC

Nuclear Fuel

18.5

21.9

44.2

20.6

86.7

RECA

Transmission

188.8

136.5

200.7

197.4

534.6

FERC / TDC

Distribution

New customers, replacements & other

95.9

92.8

106.7

88.1

287.6

GRC

Smart grid (a)

17.9

3.7

GRC

Other

23.6

21.5

23.6

12.1

57.2

GRC

Total

697.4

871.4

878.1

713.9

2,463.4

(a) net of DOE matching grant

Prairie Wind Transmission joint venture

2.0

2.1

28.0

2.6

32.7

Not included in the table are Westar's planned investment in Prairie Wind Transmission joint venture

Capital

Expenditure

Forecast

2012

2014

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2011

2012

2013

2014

$697

$871

$878

$714

Air Quality

Other

Transmission

43%

37%

41%

49%

La Cygne

2012 Earnings Guidance

Exhibit 99.3

LOGO

2012 Earnings Guidance

2012 earnings per share range $1.85 - $2.00

Key assumptions for 2012:

•

KCC approval of Stipulation & Agreement (S&A) in 2011 rate review

•

Annual retail revenue increase ≈$50 million, effective May

Includes reset of tariff-based credit in retail rates

•

≈1% growth in weather adjusted total retail sales

•

Transmission revenue increase ≈$25 million effective January

•

Companion retail TDC to be effective April

•

Combined O&M and SG&A, excluding SPP transmission expense and 2011 legal settlement, increase ≈7% (increase ≈2% without S&A expense items):

•

O&M expense, excl. SPP transmission expense, increase ≈4%

•

Excludes ≈$34 million increase for SPP transmission expense

•

Includes ≈$7 million increase for tree trimming per S&A

•

SG&A expense increase ≈14%

•

2011 adjusted for effects of legal fees and settlement regarding arbitration

•

Includes ≈$22 million increase for pension expense per S&A

•

≈$10 million decrease in depreciation and amortization expense including effects of S&A

•

Annual adjustment to Environmental Cost Recovery Rider ≈$15 million effective June 1

•

Includes ≈$14 million of actuarially-assumed COLI proceeds

•

≈$7 million increase in equity AFUDC

•

Effective tax rate of approximately 29-31%

•

Debt used for 2012 external funding needs

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 “assumption,” “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, 2011 (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.