Great River Energy
2014 Annual True-Up Meeting
Todd Butkowski
Agenda
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Introduction
Disclosure
Meeting purpose
Regulatory timeline discussion
2014 Annual True-Up results review
Next steps
Q&A
Disclosure
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All figures in this document are preliminary
and subject to change. Per the revised
Formula Rate Protocols, figures will be
finalized after the Information Exchange,
Challenge Procedures, and MISO’s review are
complete.1
1 Awaiting
FERC’s final decision on Docket ER13-2379 on FERC’s investigation
into MISO Formula Rate Protocols
Meeting purpose
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The revised Formula Rate Protocols require GRE
to hold an Annual True-Up meeting among
Interested Parties between the publication date
(June 1) and September 1
Compare actual 2014 values against projections
on which the 2014 rates were based
Review the Annual True-Up adjustment
calculation
Formula rate protocol timeline - 2015
June 1
•Deadline for Annual
True-Up
•Information exchange
period & review
period begin
June 1 –
September 1
September 1 –
October 1
•Deadline for Annual
True-Up meeting
•Deadline to post
projected net
revenue requirement
•Deadline for meeting
on projected net
revenue requirement
November 1
December 1
•Deadline for joint
meeting on regional
cost-shared projects
•Deadline for
Interested Parties to
submit information
requests
Formula rate protocol timeline - 2016
January 10
January 31
February 28
March 15
March 31
• Deadline for
Transmission
Owner to
respond to
information
requests
• Deadline for
Interested Parties
to submit
Informal
Challenges
• Deadline for
Transmission
Owner to
respond to
Informal
Challenges
• Deadline to
submit
Informational
Filing to the
Commission
• Deadline for
Interested Parties
to file Formal
Challenge at the
Commission
2014 True-Up Adjustment overview
Net revenue requirement
Actual
Projected
Difference
$96,474,640
$90,243,415
$6,231,226 (a)
2,017,310
2,032,353
(15,043)
%
5.1 %
Divisor True-Up
Divisor
Projected rate ($/kW/yr)
True-Up (Divisor Difference x Projected Rate)
$44.403
$667,961 (b)
-2.8 %
Interest
$234,689 (c)
Total 2014 True-Up Adjustment (Under Recovery)
$7,113,875 (a+b+c)
2014 ATRR summary
$93.0
$90.2
$73.0
$33.0
$6.23M Difference
(6.9%)
Actual ATRR
$53.0
Projected ATRR
Annual Transmission Revenue Requirement
$96.5
$13.0
$2.75
$2.16
$0.69
$(1.17)
$(7.0)
Return
Operating Expenses
Attachment GG Adjustment
$(0.83)
Attachment MM Adjustment
Revenue Credits
Revenue requirement overview
Projected 2014 Net Revenue Requirement
$90,243,415
% Change
Actual to Projected Differences:
Return
$2,749,690 (a)
5.9 %
O&M Expense
$2,162,961(b)
2.8 %
Attachment GG Adjustment
$687,897 (c)
3.1 %
Attachment MM Adjustment
$(1,174,443) (d)
-12.0 %
Revenue Credits
$(831,999) (e)
-21.0 %
Actual 2014 Net Revenue Requirement
$96,474,640
Overall Difference
$6,231,226
(a + b - c - d - e)
6.9 %
Return overview
Projected 2014 Rate Base
$755,763,883
% Change
Actual to Projected Differences:
Net Plant
$(23,610,851)
-3.7 %
Construction Work in Progress
$16,908,920
16.7 %
Adjustments to Rate Base *
$(196,477)
Land Held for Future Use
$0
Working Capital
$(6,471,949)
Actual 2013 Rate Base
$742,393,526
Overall Difference
$(13,370,357)
* Offset to Rate Base
1.5 %
-21.5 %
-1.8 %
Return overview
Actual Return %
DTE Ratio
Weighted
LTD
83.58%
4.63%
Equity
16.42%
Return
Projected Return %
DTE Ratio
Weighted
LTD
86.60%
4.52%
2.03%
Equity
13.40%
1.66%
6.66% (a+b)
Return
Overall Difference = 0.4816%
6.18% (a+b)
Return overview
Rate Base
Actual to Projected Difference
$13,370,357
Actual Return Rate
6.66%
$(890,387) (a)
Return Rate
Projected Rate Base
$755,763,883
Actual to Projected Difference in Return %
0.4816%
$3,640,077 (b)
Overall Difference in Return
$2,749,690 (a+b)
Operating expense overview
Projected 2014 Operating Expense
$77,291,800
% Change
Actual to Projected Differences:
O&M (includes A&G)
$3,076,730
6.3 %
Depreciation Expense
$(576,332)
-2.2 %
Taxes Other Than Income Taxes
$(337,436)
-15.2 %
Income Taxes
$0
Actual 2013 Operating Expense
$79,454,761
Overall Difference
$2,162,961
-
2.8 %
Attachment GG & MM overview
Attachment GG
Projected ATRR
$22,556,884
Attachment MM
Projected ATRR
$9,983,045
Actual to Projected Differences:
Actual to Projected Differences:
Annual Expense Charge
$376,379
Annual Expense Charge
$(317,850)
Annual Return Charge
$541,728
Annual Return Charge
$174,745
Depreciation Expense
$(230,209)
Depreciation Expense
$(1,031,337)
Actual ATRR
$23,244,781
Actual ATRR
$8,808,602
Overall Difference
$687,898
Overall Difference
$(1,174,443)
Revenue credits overview
Projected 2014 Revenue Credits
$4,005,472
% Change
Account 454 (Rent From Electric Property)
$(629,466)
-100.0 %
Account 456 (Other Electric Revenues)
$(202,533)
-6.0 %
Actual to Projected Differences:
Actual 2013 Revenue Credits
$3,173,343
Overall Difference
$(831,999)
-20.8 %
Next steps
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Information exchange procedures*
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Interested Parties have until December 1, 2015 to submit
information requests
GRE shall make a good faith effort to respond within 15
days of receipt of such request
Any information request should be submitted in writing to:
• Todd Butkowski: tbutkows@grenergy.com or
• Mike Saer: msaer@grenergy.com
■
All questions and answers will be distributed by email to
the Interested Party who asked the question(s) and will be
posted in the MISO website and OASIS
* Awaiting
FERC’s final decision on Docket ER13-2379 on FERC’s investigation into MISO
Formula Rate Protocols
Questions