Evergy Missouri West Storm Funding I, LLC Annual Report - How They Did This Year

Hey there! Let's break down how Evergy Missouri West Storm Funding I, LLC performed this past year. Think of this as a chat with a friend about whether this company is doing well and if it might be a good place for your money. We'll keep it simple, no fancy finance talk.

Okay, so we've got the annual report for the fiscal year ending December 31, 2025. This report is a bit different from what you might expect for a typical company, and that's a really important detail!

Here's what we found:

1. What does this company do and how did they perform this year?

   • What they do: This isn't your typical company that sells products or services. Evergy Missouri West Storm Funding I, LLC is a company with one specific job, or a way to raise money. Think of it like a dedicated, separate bank account. A bigger company sets it up for a very specific reason. Its name "Storm Funding" tells us its main job. It's a fully owned company, legally separate from Evergy Missouri West, Inc. (part of the larger Evergy, Inc.). This separation means its parent's financial troubles won't affect it. Its job is to help pay for big storm damage costs for its parent company. These costs typically include expenses for restoring service and repairing or replacing infrastructure damaged by severe weather events.
     • More specifically, Evergy Missouri West, Inc. acts as the company that sets up, supports, and manages the daily operations for this entity. Evergy Missouri West, Inc. sets up the deal and backs it. It also handles collecting special charges from customers. These are called "storm recovery charges" and they fund this entity. A special approval from regulators makes this structure possible. It's called a "Financing Order," issued by the Missouri Public Service Commission (MPSC). This approval allows the company to issue "storm recovery bonds." It also lets them charge customers "storm recovery charges." These charges cannot be avoided or canceled. They pay back the original loan amount plus the cost of borrowing on these bonds. Evergy Missouri West, Inc. collects the charges and sends them to Evergy Missouri West Storm Funding I, LLC.
     • This setup keeps these financial activities separate from the parent company's daily business. It provides a secure, predictable money flow for bond investors. The report also confirms the company that manages collections (Evergy Missouri West, Inc.) must follow specific rules. These rules ensure timely collection of charges and accurate accounting. They also require prompt sending of money to the bank that manages the bonds. This ensures proper management of the collection system.
   • How they performed: Its "performance" means successfully collecting enough storm recovery charges. It must also send this money on time to the bank that manages the bonds. This pays the original loan amount plus the cost of borrowing on the storm bonds. No missed payments or major issues were reported. This means the company did its specific job as expected this year.

2. Financial performance - revenue, profit, growth metrics

   • The company's main source of money consists of the storm recovery charges collected from Evergy Missouri West, Inc. customers. These charges cover the original loan amount plus interest on the storm bonds. They also pay the company's small running costs. This includes fees for the bond manager, independent manager, and audits. The regulatory approval includes an "adjustment process." This allows regular changes to storm recovery charges. It ensures enough money is always collected to meet all payments. This also reduces the risk of not having enough money. The company covers its costs exactly over the bonds' life. This ensures all bond investors are paid.

3. Major wins and challenges this year

   • For this type of company, a "win" means successfully collecting storm charges on time. It also means paying the original loan amount plus interest to bond investors without problems. A "challenge" would be not collecting enough money. Or, delays in sending money, or problems with the adjustment process. No challenges were reported. This suggests collections and payments went smoothly this year, as planned.

4. Financial health - cash, debt, liquidity

   • Its main job is to manage money owed. Specifically, it manages storm recovery bonds. These bonds pay for storm costs. The money owed was set when the bonds were first sold. It's usually hundreds of millions of dollars. The bonds have specific pay-back dates and interest rates. The company's "assets" are primarily the legal right to receive future storm recovery charges from Evergy Missouri West, Inc. customers.
   • Its ability to pay bills is strong. This is because customers must pay storm recovery charges. Also, the adjustment process ensures enough money is collected. This covers debt payments and costs. The company holds cash mainly as a channel. It receives charges and makes bond payments. It does not aim to build up large cash savings. The report also states no single large customers ('obligors') could impact its assets. This means risk is spread across all Evergy Missouri West, Inc. customers. It's not concentrated in just a few big accounts. No extra protections for lenders exist. There are no guarantees from other companies. No complex financial tools like interest rate swaps are used. The credit quality relies only on the strength of the storm charges. It also relies on the regulatory rules.

5. Key risks that could hurt the stock price

   • Here's the big one for investors: This specific company, Evergy Missouri West Storm Funding I, LLC, does not have publicly traded shares. The report clearly states no regular shares are owned by outside investors. Under "Security Ownership," it simply says "None." This means you, as a regular investor, cannot directly buy shares in this particular entity. Its purpose is to sell bonds (called "storm recovery bonds") to investors, not shares. If you're interested in investing in the broader Evergy operations, you would look at the parent company, Evergy, Inc.
   • Indirect Risk (for bond investors): The report mentions The Bank of New York Mellon (BNY Mellon) is involved in lawsuits. BNY Mellon acts as the bank that manages the bonds for this company. These lawsuits are not directly against Evergy Missouri West Storm Funding I, LLC. They are against BNY Mellon for its role as trustee in other complex financial deals involving home loans (RMBS). BNY Mellon says it's not responsible and is fighting these cases strongly. Any issues with a trustee could indirectly affect bond investors. This includes those of any bond deal they manage. It might disrupt management tasks. Or, it could raise concerns about supervision. However, these lawsuits are not about the storm recovery bonds themselves.
   • Regulatory Risk: The regulatory approval provides strong legal rules. However, new laws or rules could theoretically challenge the storm recovery charges. These charges are designed to be unavoidable and unchangeable. Such changes are generally unlikely. This is due to past legal decisions for these types of bond deals.
   • Servicer Performance Risk: Evergy Missouri West, Inc. is a utility company overseen by the government. It has strong reasons to do well. However, if the company that manages collections fails to collect storm charges effectively, it could be a problem. Or, if it fails to send them on time, it could impact the company's ability to pay its bonds.
   • Adjustment Process Effectiveness: The adjustment process ensures enough money is collected. But if it fails to properly change charges, that's a risk. Significant delays in making approved changes could also happen. This could lead to a temporary lack of money. Then, there might not be enough for bond payments.

6. Competitive positioning

   • This company isn't in a market with rivals. It's a way to manage money for its parent company, Evergy Missouri West, Inc. It's designed to separate and pay for specific utility expenses. Its existence depends solely on the regulatory permission given to its parent.

7. Leadership or strategy changes

   • As of December 31, 2025, key people managing this company are:
     • Geoffrey T. Ley: Manager and President (appointed 2024). He is also a high-level finance executive for the larger Evergy, Inc. and Evergy Missouri West, Inc. This shows how closely this money-raising company is tied to the overall Evergy organization.
     • Brett Lovell: Manager, Treasurer, and Secretary (appointed 2024). He also works in the finance department for Evergy, Inc. and Evergy Missouri West, Inc. This further highlights direct supervision from the parent company's finance team.
     • Michelle A. Dreyer: Independent Manager (appointed 2024). She works for a company that provides outside managers. These managers serve companies like this one. Such companies are legally separate from their parent's financial troubles. Her role is crucial for keeping the company legally separate. She ensures decisions benefit the bond deal and its investors. These decisions are made independently from the parent company.
   • A small annual fee of $3,700 is paid to Corporation Service Company. This is for the independent manager. This company does not pay any other compensation to its managers or top executives. This highlights its unique, non-business purpose. It functions purely as a channel for money.
   • This company's strategy links directly to its role. It's a way to raise money for Evergy Missouri West, Inc. Its goal is to collect storm recovery charges quickly and well. It also aims to pay back storm recovery bonds. The Evergy, Inc. Board of Directors' rules for good behavior also apply. This ensures honest conduct in its limited activities.

8. Future outlook

   • Its future is naturally connected to the repayment plan for its storm recovery bonds. The company should continue collecting storm charges and making bond payments. This will happen until the bonds' original amount and interest are fully paid. Its outlook is stable. This assumes the rules and laws, and the collection company's performance, stay consistent.

9. Market trends or regulatory changes affecting them

   • This company exists because of specific government rules. These rules allow turning certain utility costs into bonds. The MPSC approved this. The existing regulatory approval for this company is legally binding. Future changes to the MPSC's position on such bond deals could happen. Or, changes to how utilities get back storm money. This could impact future similar companies. But these changes would generally not change past agreements for this specific bond deal. The stability of the rules that created it is most important for its continued operation.

In a nutshell: Evergy Missouri West Storm Funding I, LLC is a company with a very specific money-managing job. It helps the larger Evergy utility company pay for very large storm damage costs. It does this by selling bonds. Its money comes from storm recovery charges. Customers of Evergy Missouri West, Inc. must pay these charges. You cannot invest in this company directly by buying its shares – there aren't any! If you want to invest in the energy sector or Evergy, research Evergy, Inc. and its publicly traded shares.