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WELCOME

Customer Meeting Annual Update TFR October 26, 2010. Transmission Formula Rate. WELCOME. Protocols Definitions. Transmission Formula Rate. “Rate Year” is defined as January 1 through December 31 (2011) “True-Up” is completed on or before June 15 each calendar year.

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WELCOME

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  1. Customer Meeting Annual Update TFR October 26, 2010 Transmission Formula Rate WELCOME

  2. ProtocolsDefinitions Transmission Formula Rate • “Rate Year” • is defined as January 1 through December 31 (2011) • “True-Up” • is completed on or before June 15 each calendar year. • based on historical (actual) data - primarily Form 1 data from 2009 • “Annual Update” • recalculates the ATRR and Formula Rate for new Rate Year (2011) • uses historical data collected during “True-Up” Phase • adds in the projected data • is calculated and posted on or before October 15 each calendar year.

  3. ProtocolsTimeline Transmission Formula Rate ********************************************************************************************* • “Rate Year”: January 1 – December 31, 2011 ********************************************************************************************* • “True Up” Update: June 15, 2010 • “True Up” Customer Meeting: June 22, 2010 • This date is kick off for Review Period • “True Up” Information Requests Period – 75 days: August 30, 2010 • Issues - Westar Energy Response Date: • Good faith effort to respond within 10 business days from date of information request. • Additional periods for data review resolutions, per Protocols posted on WR OASIS ********************************************************************************************** • “Annual Update”: October 15, 2010 • “Annual Update” Customer Meeting: October 26, 2010 • Potential Repost of Annual Update: November 30, 2010 **********************************************************************************************

  4. ProtocolsOASIS Postingsand Data Requests Transmission Formula Rate • OASIS Posting Requirements: • Updated Calculation • Protocols • Accounting Manual and changes • Data Request Submission Address • Submission of Data Requests to: Sheila Gropp Westar Energy 818 Kansas Avenue Topeka, KS 66612 Sheila.A.Gropp@WestarEnergy.com Please also cc: Leslie.Wines@WestarEnergy.com (new) • Please provide all Data Requests in writing via email or letter.

  5. Transmission Formula Rate Key Data Locations FERC Form 1 Data - 2009: FERC.gov (Westar Energy Form 1) (Kansas Gas & Electric Form 1) Formula Rate Postings: Westar Energy Oasis http://www.oatioasis.com (select WR) Southwest Power Pool Oasis http://oatioasis.com (select SWPP)

  6. Westar Energy’s Oasis SiteLocating Site Transmission Formula Rate http://www.oatioasis.com/ Click on SPP Icon. It’s a hyperlink to SPP Oasis Node that contains SPP Transmission Owners Oasis Sites.

  7. Westar Energy’s Oasis SiteLocating Site - 2 Transmission Formula Rate SPP Transmission Owners Oasis Sites: Click on Westar Icon. It’s a hyperlink to new Westar Energy Oasis Site.

  8. Westar Energy’s Oasis SiteFinding Documents Transmission Formula Rate The Annual Update is under this Document Directory. Click on the file folder icon or name to open. The sub-folders will appear. Click on the Oct 15, 2010 Update – Annual Folder. Any documents for that update will be displayed. Update Results

  9. Westar Energy’s Oasis SiteLocating Accounting Manual Transmission Formula Rate Accounting Manual Login Accounting Data User ID: AFSReader Accounting Data Password: AFSReader#1 Under the Transmission Formula Rate (TFR) 2011 Rates Folder, is the sub-folder – “Accounting Information as of 12/31/2009” Select this folder to see available files. Under the Accounting Information as of 12/31/2009 Folder are several files. For the Accounting Manual, click on: “Accounting Manual as of 12/31/2009”

  10. Southwest Power PoolSelecting SPP Oasis Site Transmission Formula Rate SPP Transmission Provider Oasis Sites: Click on SPP Icon. It’s a hyperlink to Southwest Power Pool Oasis Site.

  11. Southwest Power PoolOasis Site Member Related Postings Transmission Formula Rate

  12. Formula InputsIndex of Template Pages Transmission Formula Rate

  13. Formula Components Annual UpdateTrue-Up and Projected Plant Transmission Formula Rate • Data Included • Historical 2009 financial data Westar Energy Form 1 Kansas Gas & Electric Form 1 • FERC Approved Incentive Plant – Actual • SPP Projects – Actual • True-Up data (FERC Interest, true-up between Projected 2009 and Actual 2009) • Projected Construction development • Includes Plant Projected to be in-service in 2011 • Template References: • Template Form 1 Reference format: Page, Line, Column • Worksheet Reference format: Worksheet P-1 (with section if applicable) • Yellow areas are change areas References and Clarifications: If you see any references that are not correct or if you have any suggestion, please let me know.

  14. October 15, 2010 Annual Update Transmission Formula Rate Key Data Impacts

  15. Projected Update Gross Proj Rev Reqm 2007 Ice Storm and Reserves Transmission Formula Rate • 2007 Ice Storm • Amortization schedule will be completed in 2011 • Therefore, there will be a zero balance for EOY 2011 (Line 9a) • Reserve will continue until used in the future. (Line 9b)

  16. Projected Update • Gross Proj Rev Reqm • Plant Additions Transmission Formula Rate • The Projected Plant Additions - Compare 2010 vs. 2011

  17. TU“True-Up” with Interest Transmission Formula Rate June 15, 2010 “True-Up” Update (posted June 15, 2010) During this update, a comparison of the 2009 Projected ATRR and 2009 Actual ATRR was calculated. The difference was ($16.612,099) October 15, 2010 “Annual Projected” Update (posted October 15, 2010) During this update, the interest is applied to the “True-Up”. After the application of FERC Interest, the total “true-up” amount was ($17,822,290).

  18. “True-Up” with Interest Net Projected Revenue Requirement Transmission Formula Rate The 2009 True-Up with Interest is applied = ($17,822,230). Net Westar Energy Revenue Requirement is determined = $147,871,037.

  19. Zonal vs. Regional Net ATRR Transmission Formula Rate Net Projected Revenue Requirements BPF Projects Summary >> T9 Col q = NPRR Line 9 True-Up

  20. SPP Attachment H Zonal Net ATRR and SPP Regional Net ATRR Transmission Formula Rate • SPP Regional Net ATRR will be allocated by SPP • SPP will allocate this ATRR to the zones according to benefit and Load Ratio Share • SPP is planning a FERC Filing around November 15, 2010 which will include the new allocations by zone. • Zonal Net ATRR • This ATRR will allocated at 100% to the Westar Zone • Total Net ATRR = $147,871,037

  21. Revenue Requirements Comparison Transmission Formula Rate ~14% ~16%

  22. Cost Estimates Transmission Formula Rate ~9% Increase for Zonal ATRR

  23. SPP Current OATT Attachment H Valuesas of June 19, 2010 Transmission Formula Rate These values can change at any time during a calendar year. Modifications are based on any new Transmission Owner ATRR. SPP files updates with FERC for inclusion in SPP OATT Rates. Cost Estimate

  24. Meeting Questions - Responses Researched Transmission Formula Rate • Q1 from Kathy Brinker, NMEC • Q1: Is there a Storm Reserve Limit? • A1: There is no limitation. • Q 2 and Q3 from Larry Holloway, KPP • Q2: Can Storm Reserve be a negative value? • A2: The Transmission Reserve is only a positive value or zero. • Q3: Is Storm Reserve a part of Return? • A3: Yes. Storm Reserve is a reduction to Rate Base. • Q4 from Michael Wegner, KCC • Q4: Was the 69 kV storm damage in SE Kansas this year a reduction to the Storm Reserve? • A4: Yes.

  25. Transmission Formula Rate Thank You!

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