October 30, 2012
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• 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
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2007
2008
2009
2010
2011
2012
2013
2014
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350
300
250
200
150
100
50
0
70
150 160
200
165
145
260
210
2007 2008 2009 2010 2011 2012 2013 2014
Projected Projected Projected
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• 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)
• TrueUp for prior year’s difference between actual and projected, including interest
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• 2009 was the first ATRR that included the forwardlooking, 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 FERCapproved TFR
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Westar’s Gross Rev. Requirement
Revenue Credits
True-Up from 2011
Westar’s Net Rev. Requirement
SPP’s BPF Rev. Requirement*
SPP Zonal Rev. Requirement**
$230,234,224
($ 22,198,015)
($ 9,786,991)
$198,249,218
($ 64,795,034)
$133,454,184
* Funds collected under Schedule 11
** Resulting rates go into effect with January 1, 2013, business
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Example of a Customer’s Estimated Transmission Costs, 2012 vs. 2013
Customer’s 2011 Load Ratio Share .00475
2012 Westar Zonal Rev. Req., plus SPP Schedule 11*
Customer’s Annual Transmission Service Charge (before
Ancillary Services and Fees)
$182,198,978
$ 865,445
Customer’s 2012 Load Ratio Share
2013 Westar Zonal Rev. Req., plus SPP Schedule 11*
Customer’s Estimated Annual Transmission Charge
(before Ancillary Services and Fees)
.00475
$183,038,901
$ 869,434
Estimated Difference + .46%
* 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
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• 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
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• 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
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