Westar Energy’s 2013
Annual Transmission Revenue Requirement
True-Up Meeting
June 25, 2013
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Today
• Quick Review of the Formula
• The Results: 2012 Actual ATRR vs.
Projected 2012 ATRR
• Why is there a Difference Between the
Actual and Projected?
• Protocol Review
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Quick Review: The Formula (True-Up)
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•
Gross Revenue Requirement (GRR) includes:
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•
•
•
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Actual Transmission Plant
Actual Transmission O&M
Actual Transmission Depreciation Expense
Taxes
Return
Net Revenue Requirement adjusts the GRR for:
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•
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Revenue Credits received for Point-to-Point Transmission
Service and revenue received from Network customers
outside the Westar pricing zone
“Rent” received (i.e. pole attachments)
Note: Actuals used to determine true-up do not include any
projections or previous years’ true-up adjustments
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The Results: Projected vs Actual ATRR for 2012
Projected
Actual
Westar’s Gross Rev. Requirement
$203,102,936
$198,983,473
Revenue Credits
$ 21,496,752
$ 30,339,692
Westar’s Net Rev. Requirement
$181,606,183*
$168,643,782
True-Up Amount (before interest)**
($ 12,962,401)
* 2012 Projected Net Revenue Requirement without the 2010 True-Up
** Credit to be applied to 2014 ATRR (plus interest), in the rates effective January 1, 2014
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Why the Difference? Two Main Reasons…
1. Actual O&M was less than projected
•
The TFR calculates a projected O&M based upon the change
in net plant and is automatically calculated as part of the
formula
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Why the Difference? Two Main Reasons…
2. Actual Revenue Credit was more than projected
•
The projected revenue credit is the amount of revenue received
by Westar for transmission service which does not come from
Network Transmission customers in the Westar pricing Zone
•
The Westar TFR always sets the projected revenue credit
equal to the amount from the latest FERC Form 1 year (2010)
•
Actual 2010 revenues were primarily from point-to-point
transmission service
•
Since 2010, the amount of revenue coming from Base Plan
regional projects built by Westar increased such that most of
the revenue Westar receives from Network customers outside
the Westar zone is now significantly larger than the revenue
from point-to-point transactions
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Formula Protocols: Annual Update
• Today: June 25, 2013
• Data requests regarding this true-up calculation may
be submitted until September 9, 2013
– Westar will make its best effort to respond within 10 business
days of the receipt of such requests
• Send comments or data requests via e-mail to:
– Melissa Deutsch at melissa.deutsch@westarenergy.com
– Please cc: gelene.tiller@westarenergy.com
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Summary
• Thank you very much for participating in today’s
meeting!
• We are here to assist in any way possible.
• Please let us know if you have any questions.
• Safe travels home!
• SAVE THE DATE FOR THE 2014 ANNUAL WESTAR
ATRR MEETING:
October 29, 2013
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