Depreciation rates average

[Table of Contents](#i9e3d7fad53bb42b083be8286e4319cd4_10) The amounts of the Evergy Companies' AFUDC for borrowed and equity funds are detailed in the following table.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |  | 2019 |
| Evergy | (millions) |
| AFUDC borrowed funds | $ | 14.7  |  |  | $ | 16.5  |  |  | $ | 14.5  |  |
| AFUDC equity funds | 29.4  |  |  | 17.2  |  |  | 2.2  |  |
| Total | $ | 44.1  |  |  | $ | 33.7  |  |  | $ | 16.7  |  |
| Evergy Kansas Central |  |  |  |  |  |
| AFUDC borrowed funds | $ | 7.1  |  |  | $ | 8.5  |  |  | $ | 7.5  |  |
| AFUDC equity funds | 14.9  |  |  | 9.1  |  |  | —  |  |
| Total | $ | 22.0  |  |  | $ | 17.6  |  |  | $ | 7.5  |  |
| Evergy Metro |  |  |  |  |  |
| AFUDC borrowed funds | $ | 6.0  |  |  | $ | 6.0  |  |  | $ | 4.3  |  |
| AFUDC equity funds | 12.6  |  |  | 8.0  |  |  | 2.2  |  |
| Total | $ | 18.6  |  |  | $ | 14.0  |  |  | $ | 6.5  |  |

The average rates used in the calculation of AFUDC are detailed in the following table.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |  | 2019 |
| Evergy Kansas Central | 4.9% |  | 4.7% |  | 3.0% |
| Evergy Metro | 5.6% |  | 5.2% |  | 4.6% |
| Evergy Missouri West | 2.6% |  | 3.5% |  | 3.7% |

When property units are retired or otherwise disposed, the original cost, net of salvage, is charged to accumulated depreciation. Repair of property and replacement of items not considered to be units of property are expensed as incurred, except for planned refueling and maintenance outages at Wolf Creek Generating Station (Wolf Creek). As authorized by regulators, the incremental maintenance cost incurred for such outages is deferred and amortized to expense ratably over the period between planned outages.Depreciation and AmortizationDepreciation and amortization of utility plant other than nuclear fuel is computed using the straight-line method over the estimated lives of depreciable property based on rates approved by state regulatory authorities. Annual depreciation rates average approximately 3%. See Note 7 for more details. Nuclear fuel is amortized to fuel expense based on the quantity of heat produced during the generation of electricity. The depreciable lives of Evergy's, Evergy Kansas Central's and Evergy Metro's property, plant and equipment are detailed in the following table.

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Evergy |  |  | Evergy Kansas Central |  |  | Evergy Metro |  |
|  |  | (years) |  |
| Generating facilities |  | 8 | to | 87 |  |  |  | 8 | to | 87 |  |  |  | 20 | to | 60 |  |
| Transmission facilities |  | 15 | to | 94 |  |  |  | 36 | to | 94 |  |  |  | 15 | to | 70 |  |
| Distribution facilities |  | 8 | to | 73 |  |  |  | 19 | to | 73 |  |  |  | 8 | to | 55 |  |
| Other |  | 5 | to | 84 |  |  |  | 7 | to | 84 |  |  |  | 5 | to | 50 |  |

Plant to be Retired, NetWhen the Evergy Companies retire utility plant, the original cost, net of salvage, is charged to accumulated depreciation. However, when it becomes probable an asset will be retired significantly in advance of its original expected useful life and in the near term, the cost of the asset and related accumulated depreciation is recognized as a separate asset and a probable abandonment. If the asset is still in service, the net amount is classified as plant to 89
