Westar Energy’s 2013 Annual Transmission Revenue Requirement Meeting

1. Westar Energy’s 2013Annual Transmission Revenue Requirement Meeting October 30, 2012

2. Today • Status Report: Transmission Projects • Quick Review of the Past • The Results: 2013 ATRR • What Do These Results Mean to Our Customers? • Protocol Review • Meter Cost Recovery Policy

3. 2007 2008 2009 2010 2011 2012 2013 2014

4. Transmission Investment Millions $ Projected Projected Projected

5. Future Projects in the Southwest Power Pool

6. Quick Review: The Formula • Gross Revenue Requirement (GRR) includes: • Projected Transmission Plant In-Service • Projected Transmission O&M • Projected Transmission Depreciation Expense • Taxes • Return • Net Revenue Requirement adjusts the GRR for: • Revenue Credits received for Point-to-Point Transmission Service • “Rent” received (i.e. pole attachments) • True-Up for prior year’s difference between actual and projected, including interest

7. Quick Review: The Past • 2009 was the first ATRR that included the forward-looking, revised formula • History of true-up adjustments: • -$17.8 M was applied in the 2011 ATRR, for 2009 business • $4.5 M was applied in the 2012 ATRR, for 2010 business • -$9.8 M will be applied in the 2013 ATRR, for 2011 business • Key aspect of true-up amounts: O&M • The TFR calculates a projected O&M based on the percentage increase in Transmission Plant times the actual O&M from the previous actual year • This function of projecting O&M is part of the FERC-approved TFR

8. The Results: ATRR for 2013 Westar’s Gross Rev. Requirement $230,234,224 Revenue Credits ($ 22,198,015) True-Up from 2011 ($ 9,786,991) Westar’s Net Rev. Requirement $198,249,218 SPP’s BPF Rev. Requirement* ($ 64,795,034) SPP Zonal Rev. Requirement** $133,454,184 * Funds collected under Schedule 11 ** Resulting rates go into effect with January 1, 2013, business

9. The Results: What Does this Mean to You? * Includes Westar’s respective Zonal ATRR plus the most recent information posted in Attachment H of SPP’s OATT; amounts in Attachment H vary throughout the year, depending on activities of other TOs in SPP

10. Formula Protocols: Annual Update • Today: October 30, 2012 • Comments and questions are preferred by November 20, 2012, so we can review and revise the ATRR if necessary • If necessary, revised ATRR will be posted by November 30, 2012 • Send comments or questions via e-mail to: • Sheila Gropp at sheila.gropp@westarenergy.com • Please cc: gelene.tiller@westarenergy.com and suzanne.lane@westarenergy.com • SAVE THE DATE FOR THE 2012 TRUE-UP MEETING: June 25, 2013

11. Meter Cost Recovery Policy • Purpose: To assure fair, consistent treatment of all Transmission Customers for meter-related costs • Key Aspects: • Outlines recoverable capital expenses: • New meter points • Failed equipment • Upgrades (requested by TC) • Back-up meter points • Outlines recoverable O&M expenses • Meter service fee • TBD and filed with FERC before charged • Effective Date: September 1, 2012

12. Questions?