Aug 7 (Reuters) -

Utility Evergy ( EVRG ) posted a drop in second-quarter

profit on Thursday, hurt by higher operating and interest

expenses, while a milder weather reduced power consumption .

Higher-for-longer interest rates raise borrowing costs for

power companies, which usually need more capital for expenses

such as maintaining and upgrading the electric grid.

Evergy ( EVRG ) said interest expenses rose 7.1% to $153.8 million in

the quarter.

"In July, we announced a unanimous settlement agreement in

our Kansas Central rate case which, if approved by the Kansas

Corporation Commission (KCC), will deliver a constructive

outcome for our Kansas Central customers," CEO David Campbell

said in a statement.

"We also received approval for new natural gas and solar

projects in Kansas and Missouri," he added

Total operating expenses for the quarter ended June 30 rose

to $1.09 billion from $1.08 billion a year ago.

Total revenue for the quarter fell to $1.44 billion from

$1.45 last year and total retail sales fell 6.38% from a year

earlier to $1.13 billion.

The company reaffirmed its forecast for adjusted

operating earnings to between $3.92 per share and $4.12 per

share for 2025. Analysts have estimated them at $4.03 per share.

Evergy's ( EVRG ) net income fell to $171.3 million, or 74 cents per

share, compared with $207 million, or 90 cents per share, a year

earlier.

Evergy ( EVRG ) provides power to 1.7 million customers in Kansas and

Missouri through its operating subsidiaries Evergy Kansas

Central, Evergy Metro and Evergy Missouri West.

(Reporting by Katha Kalia in Bengaluru; Editing by Anil

D'Silva)