Westar Energy’s 2012
Annual Transmission Revenue Requirement
Meeting
October 25, 2011
1
Today
• Status Report: Transmission Projects
• Quick Review of the Past
• The Results: 2012 ATRR
• What Do These Results Mean to Our
Customers?
• Protocol Review
2
2007
2008
2009
2010
2011
2012
2013
2014
3
Transmission Investment
250
200
195
180
200
Millions $
195
150
160
2008
2009
150
100
70
50
0
2007
2010
4
2011
Projected
2012
Projected
2013
Projected
Future Projects in the Southwest Power Pool
5
Quick Review: The Formula
•
•
Gross Revenue Requirement (GRR) includes:
•
•
•
•
•
Projected Transmission Plant
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
6
Quick Review: The Past
•
2009 was the first ATRR that included the forwardlooking, revised formula
•
The first substantial true-up adjustment of -$17.8 M
was applied in the 2011 ATRR, for 2009 business:
•
•
•
Actual O&M expenditures in 2009 were lower than projected
Actual revenue credits received for PTP service in 2009
were higher than projected
Therefore, the net ATRR increase from 2010 to 2011
was 12% (it would have been 25% without the
-$17.8 M adjustment)
7
The Results: ATRR for 2012
Westar’s Gross Rev. Requirement
$203,102,936
Revenue Credits
($ 21,496,752)
True-Up from 2010
$
4,453,094
Westar’s Net Rev. Requirement
$186,059,278
SPP’s BPF Rev. Requirement*
($ 38,125,719)
Westar’s Zonal Rev. Requirement**
$147,933,559
* Funds collected under Schedule 11
** Resulting rates go into effect with January 1, 2012, business
8
The Results: What Does this Mean to You?
Example of a City’s Estimated Transmission Costs, 2011 vs. 2012
City’s 2010 Load Ratio Share
.00475
2011 Westar Zonal Rev. Req., plus SPP Schedule 11*
$143,996,748
City’s Annual Transmission Service Charge (before
Ancillary Services)
$
City’s 2011 Load Ratio Share
683,787
.00475
2012 Westar Zonal Rev. Req., plus SPP Schedule 11*
$169,907,954
City’s Estimated Annual Transmission Charge (before
Ancillary Services)
$
Estimated Difference
806,830
+ 18.0%
* 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
9
Formula Protocols: Annual Update
• Today: October 25, 2011
• Comments are accepted through November 30, 2011
• If necessary, revised ATRR will be posted on
November 30, 2011
• Send comments or questions via e-mail to:
– Sheila Gropp at sheila.gropp@westarenergy.com
– Please cc: leslie.wines@westarenergy.com
10
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 2011 TRUE-UP MEETING:
June 26, 2012
11