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

1

WELCOME

Transmission Formula Rate

Customer MeetingAnnual Update TFR

October 26, 2010

2

ProtocolsDefinitions

“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

********************************************************************************************* “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 Postings

and Data Requests

OASIS Posting Requirements: Updated Calculation Protocols Accounting Manual and changes Data Request Submission Address

Submission of Data Requests to: Sheila GroppWestar Energy818 Kansas AvenueTopeka, KS [email protected] also cc: [email protected] (new)

Please provide all Data Requests in writing via email or letter.


mailto:[email protected]

mailto:[email protected]

5

Key Data Locations

FERC Form 1 Data - 2009:

FERC.gov(Westar Energy Form 1)

(Kansas Gas & Electric Form 1)

Formula Rate Postings:

Westar Energy Oasishttp://www.oatioasis.com (select WR)

Southwest Power Pool Oasishttp://oatioasis.com (select SWPP)


http://www.oatioasis.com/

http://oatioasis.com/





6

Westar Energy’s Oasis SiteLocating Site


Click on SPP Icon. It’s a hyperlink to SPP Oasis Node that contains SPP Transmission Owners Oasis Sites.



7

Westar Energy’s Oasis Site

Locating Site - 2

SPP Transmission Owners Oasis Sites:

Click on Westar Icon. It’s a hyperlink to new Westar Energy Oasis Site.


8


Finding Documents

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


Locating Accounting Manual

Accounting Manual LoginAccounting Data User ID: AFSReaderAccounting 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

SPP Transmission Provider Oasis Sites:

Click on SPP Icon. It’s a hyperlink to Southwest Power Pool Oasis Site.

Southwest Power PoolSelecting SPP Oasis Site Transmission Formula Rate

11

Southwest Power PoolOasis Site

Member Related PostingsTransmission Formula Rate

12

Formula InputsIndex of Template Pages

Tab ID Schedule/Worksheet Designation Description Date to be Posted

Actual Net Rev Req Schedule Actual Net Rev Req Actual net revenue requirements for most recent calendar year June 15

Gross Rev Req Schedule Actual Gross Rev Req Actual gross revenue requirements for most recent calendar year June 15

A-1 Revenue Credit Actual revenue credits June 15

A-2 Actual transmission load WE Revenues June 15

A-3 Actual Retail Adder WE Divisor June 15

A-4 Actual O&M Exclusions (WEN) WE Retail Adder June 15

A-5 Actual Accum Deferred Income Taxes (WEN) WEN O&M Exclusions June 15

A-6 Actual O&M Exclusions (WES) WEN ADIT June 15

A-7 Actual Accum Deferred Income Taxes (WEN) WES O&M Exclusions June 15

A-8 Actual Depreciation Rate Calculation WES ADIT June 15

A-9 Actual Base Plan Funded Projects Depreciation Adjustment June 15

A-10 Actual Wages and Salaries Plant Additions for Upcoming Year June 15

A-11 Actual Incentive Return on Incentive Plant Incentive Plant Additions June 15

A-12 Actual Economic Portfolio Funded Projects Base Plan Funded Additions June 15

TU True-up True-up Adjustment and Interest Calculation Oct 15

BPF BPF Summary Total Actual and Projected BPF projects Oct 15

EPP EPP Summary Total Actual and Projected EPP projects Oct 15

Projected Net Rev Req Projected Net Rev Requirement Projected net revenue requirements for next calendar year Oct 15

Projected Gross Rev Req Projected Gross Rev Req Projected gross revenue requirements for next calendar year Oct 15

P-1 Transmission Plant Projected transmission plant for next calendar year Oct 15

P-2 Exp. & Rev. Credits Projected expenses and revenue credits for next calendar year Oct 15

P-3 Trans. Network Load Projected transmission load for next calendar year Oct 15

P-4 BPF Projects Projected Base Plan Funded Projects Oct 15

P-5 Econ. Projects Projected Economic Portfolio Funded Projects Oct 15


13

Formula Components Annual Update

True-Up and Projected Plant

Data Included Historical 2009 financial data

Westar Energy Form 1Kansas 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

Key Data Impacts


15

• 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)


Projected UpdateGross Proj Rev Reqm

2007 Ice Storm and Reserves

16


Projected UpdateGross Proj Rev Reqm

Plant Additions

• The Projected Plant Additions - Compare 2010 vs. 2011

SPP Funded Plant Additions Projected

$92,280,137 $29,061,692

Zonal Additions Projected

$67,999,050 $63,004,308

Projected Transmission Plant Additions

2010

$160,279,187

2011

$92,066,000

17

TU“True-Up” with Interest

June 15, 2010 “True-Up” Update (posted June 15, 2010)

During this update, a comparison of the2009 Projected ATRR and 2009 Actual ATRR was calculated.

The difference was ($16.612,099)

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).

October 15, 2010 “Annual Projected” Update (posted October 15, 2010)


18


“True-Up” with InterestNet Projected Revenue

Requirement

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

True-Up

Net Projected Revenue Requirements

BPF Projects Summary >> T9 Col q = NPRR Line 9

20

• 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


SPP Attachment HZonal Net ATRR and

SPP Regional Net ATRR

21

Revenue Requirements ComparisonTransmission Formula Rate

2010

Westar Net ATRR

Zonal

$115,503,530

SPP BPF Funding

$19,256,992

2011

Westar Net ATRR

Zonal

$132,056,555

SPP BPF Funding

$16,159,077

~14%

~16%

22

Cost EstimatesTransmission Formula Rate

~9% Increase for Zonal ATRR

23


SPP Current OATT Attachment H Values

as of June 19, 2010

Cost Estimate

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.

24


Meeting Questions - Responses Researched

Q1 from Kathy Brinker, NMEC

Q1: Is there a Storm Reserve Limit?A1: There is no limitation.

Q 2 and Q3 from Larry Holloway, KPPQ2: 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, KCCQ4: Was the 69 kV storm damage in SE Kansas this year a reduction to the Storm Reserve?A4: Yes.

25

Thank You!
