Westar Energy Transmission Operations: An Update on Regional and Local Transmission Activity Presented to Attendees of Westar’s Transmission Formula Rate Meeting June 22, 2010 Transmission Formula Rate True-Up Meeting Today’s Agenda Transmission Formula Rate The Protocols of the Formula: How They Apply to You A Discussion of the June 15 True-Up Calculation An Update on Regional and Local Transmission Activity Attachment AQ: New Delivery Point Addition Procedures 2 The Many Facets of Transmission… The Current “Hot Topics” at the Southwest Power Pool Full Speed Ahead: Westar’s Transmission Construction Status 3 The Southwest Power Pool (SPP) Hot Topic #1: Making the System Study Process More Efficient New transmission service requests New delivery points Attachment AQ: The New Delivery Point Addition Procedures New generation interconnections Attachment V: The New Generation Interconnection Procedures (GIP) Which comes first, the wind or the wires? 4 Proposed Wind Projects in SPP 5 The Southwest Power Pool (SPP) Hot Topic #2: Cost Allocation…Who Pays for What? Highway/By-way Rate FERC just approved on June 17, effective June 19, 2010 Focuses on SPP Region as a whole Allocation according to voltage • > or = 300 kV is spread across entire region • > 100 kV < 300 kV is 1/3 region, 2/3 zone • < or = 100 kV is 100% to the zone Zonal, Regional, Base Plan Funded, Economic…oh my! 6 The Southwest Power Pool (SPP) Hot Topic #3: 765 kV…Truth or Myth? Prairie Wind Transmission Joint Venture between Westar and American Electric Power (AEP) First project of focus has been: Wichita-Medicine Lodge 765 kV SPP has approved double-circuit 345 kV so far PWT is working with ITC to revise KCC settlement agreement accordingly for 345 kV 765 kV can still become a reality • Integrated Transmission Plan (ITP) will be issued January 2011 • Would be operated at 345 kV for indefinite period 7 Proposed 765 kV Projects 8 Construction Status Report Westar is building more new transmission than ever Transmission service, reliability, generator interconnections Cost recovery via Transmission Formula Rate Example: $200+ million vs. $10 million in earlier years TransCanada, TransCanada, TransCanada Other major projects: Wichita-Reno 345 kV Reno-Summit 345 kV Rose Hill-Sooner 345 kV Numerous other transmission projects….. 9 TransCanada is Coming! • TransCanada will have six pumping stations in Kansas. • Five of those stations are in the Westar Energy service area. • Each station has at least two and up to five 6500 hp motors. • Estimated peak load at each site will be 17-25 MW •All locations expected to be online by the end of 2013 10 GOESSEL Ci 1 rc 15 le .15 to Ea st INMA Sprin e to dridg MounMARION "S INMAN MCPHERSON RICE MOUNDRIDGE MEAV "S S ")B "S)"+ " "S"S "DAVI "S")B) S FMON "S KSIR "S 345.19S Circle to Davis "S "S"S Burrton "S BURRTON 115.80 WALTON GATZ "SNORTH NEWTON NEWT ") MDAM HARVEY BURR SOUTH HUTCHINSON "S 69.74A 138.14 6 )"F "S HUTCHINSON 18PL 14LO "S 11HL 3VAN ") "S "S CENA 2ELM MIWI "S "S " "S HESS"S Halstead to Moundridge .1 "S 5 11 . 99 GOLD HESSTON BUHLER BUHL") RENO 43LO CIRC HECG "SHEC W "S MEDORA ") 5 11 "S Stage 1: Gordon Evans Energy Center to Reno Sub YOST "S SAVC . k Jct 115.02 MOUN "S e g C re 115.55 M cP he r so n 345 kV Projects: Wichita-Reno-Summit to Hals tead ELBING "") S "S NEWTON MUDC 69.49 "S MC LAINE "SHALSTEAD HALS ")B 69.50 ANNELLY "S )"F HAVE ") HAVEN PATTERSON Emporia EC to Wichita 345 BUTLER SEDGWICK MAHA "S FURLEY BENTLEY MT. HOPE 345.15B YODER RENO 138.11 "S SG12 Colwich to Halstead WHITEWATER CRPC VALLEY CENTER 5 34 . 09 "S "S "S COLWICH " TVTH)B 138.12 MAIZE ")B "S MASCCOLE "S "S " CSTV 7 ³ WICHITA "S "S "S "S )"F BEL AIRE COMO " "S S 7 "S PHIL HDRO ³ 11 "S GREENWICH RIPL "S BENT 138.09 "S ST MARK (UNION) "F KECHI PARK CITY "S LAKE "S 345.10A CHIS WICH GORD GORD ANDALE 69.35 "S GRNT )"F SEDGWICK ANDOVER "S "S "S Energized December 2009 345 kV Projects: Wichita-Reno-Summit "S EABI WABI WESTFALL JUNIATA "S SOLOMON LINCOLN GLENDALE NEW CAMBRIA ) "S Hills BAVARIA 0 BROOKVILLE "S "S SGAT SALINA SHIL SMOK "S EXID "S "S PHLP "S "S SALINE GEARY "S PDSO ")BNOVW Abilene EC to Northview NAVARRE "S WOODBINE HOLLAND SHADY BROOK Morris County to Summit "S "SSUMM Stage 2: Reno Sub to Summit Sub WALG KIPP DICKINSON LYONA "S 345.07 115.32 230 .1 it to Smok y ENTE "SAEC "S "S SALM "SNSTR " CRFD S""S "S DETROIT ")B"S ")"S ENTERPRISE ADSO DSOS HEDVILLE Summ ABILENE "S GYPS "S DILLON GYPSUM ELLSWORTH CARLTON ELMO"S ") ELMO MORRIS HOPE "S )B ") HERINGTON "S RDSO "S HRFH "S RAMONA LSPR "S MARQ "S "SLOST SPRINGS ROXBURY "S TAMPA MARQUETTE CRAWFORD GENESEO DURH LINCOLNVILLE "S PILSEN DURHAM ANTELOPE DOC WIND MITCHELLLITTLE RIVER " WINDOM "S "S")S")")"S WHEA "S "S "S GALVA "S "S CHASE CANTON CANT LEGH "S "S HILLSBORO "S HILLSBOROHSFH MARION EMCP LYONS MARION HILL LEHIGH "S "S CANADA MRFH" "SMARION S MARION "S 115.55 RICE "S MCPHERSON WMCP "S SAXMAN AULINE FLOJ "S FLORENCE .1 5 "SINMAN INMA 11 5 "S ")")"S "S MEDORA ") COND 43LO CIRC RENO"S)"F HEC MDOW HECG "S " WILLOWBROOK S 18PL " " S S 14LO "S 11HL "S 3VAN 2ELM "") "SHUTCHINSON FMON SMIWI "S CENA " DAVI CITI S"S"S"S "S" "S ")B "S)"+"S")"S ") CITS B "S BUHLER ") BUHL 8 115.9 ""S S S "S "S SOUTH HUTCHINSON HARVEY WATC YOST PEABODYPEABODY "S HESSTON 138.14 SAVC NICKERSON MOUNDRIDGE MOUN HESS"S "S GATZ WALTON PEAB 12 "S "SNORTH NEWTON MDAM NEWT BURR "S "S BURRTON MUDC "S GOLD ") "") S NEWTON ELBING BUTLER 69.85 STERLING RENO FLCE "S GOESSEL ALDEN BURNS Scheduled to be completed September 2010 345 kV Projects: Rose Hill-Sooner "S "S OAKL "S "S HYDR"S "S "SSTEA OATV LIN MURR VULC "S T28S R01W 3 8 13 .1 HAYS "S 2 .0 T28S R02E "S OAKLAWN WICHITA 59TH "S "SWACO )"F 138.30 SCHULTE "S "S )"B "S "S MACA "S MIDL MAGN 345.16 ROSE ROSE HILL "S T28S R04E T28S R03E "S Latham "S HAYSVILLE DERBY FARB SEDGWICK CLEARWATER "S T29S R01W "S T29S R02E "S CLEARWATER RICH WACO PECK CLEARWATER T28S R07E T28S R06E T28S R08E T28S R05E ELPA "S BAYNESVILLE 13 8 "S T29S R04E T29S R03E DOUGLASS BUTLER 3t4o 5.1R 1os e Hill LATHAM T29S R08E T29S R06E T29S R05E T29S R07E ")B DOUGLASS T29S R01E CLEARWATER T30S R01W MULVANE ROCK 69.42 Bell to Peck PECK Rose Hill Sub to OGE’s Sooner Sub T30S R03E T30S R02E ATLANTA T30S R05E T30S R04E T30S R07E T30S R08E T30S R06E T30S R01E T30S R02W "S WILMOT TIMB AKRO RIVERDALE "S T31S R01E AKRON T31S R03E T31S R02E T31S R01W Timber Tap to Winfield T31S R04E "S )"F FLORAL T31S R05E FLOR T31S R07E T31S R06E T31S R08E "S NEW SALEM CAMBRIDGE BURDEN OXFO WELLINGTON )"F SUMNER W )"F T32S R02E el R01E T32S T33S R01E "S lin gt on to SC 4 Ro m CAV6 69.99 DALTON T32S R04E ")B T32S R05E T32S R07E T32S R06E T32S R08E COWLEY WINFIELD T32S R03E 7RAIN )"F ³ e "S T33S R02E DEXTER T33S R03E T33S R04E 69.101 Bell to SC3 Miller UDAL BELLE PLAINE "S T31S R02W )"F BELL T33S R05E T33S R06E T33S R07E T33S R08E ")F OAK PRLD "S "S CRSW T34S R02E CVC3 )"F "S ") PARI"S ")B T34S R03E T35S R03E T34S R04E ARKANSAS CITY PARKERFIELD ARKA T34S R08E T34S R06E T34S R07E T35S R06E T35S R07E T35S R08E ")B T34S R05E 13 SILVERDALE "S T35S R04E T35S R05E Westar’s portion is scheduled to be completed mid-2012 Other Projects: North-Central Kansas SUMMERFIELD BERN ")F BERN"S OKETO T01S R08E "S T01S R12E T01S R11E T01S R10E T01S R09E T01S R13E MARIETTA T01S R07E ST BENEDICT AXTL "S T02S R07E SMIT ONEIDA "S T03S R09E T03S R08E SSEN F )" "S )"F T03S R07E T02S R13E "S SENECA") 115.22 "SKNOB T03S R06E MARSHALL "S 115.100 NEMAHA NM 5 Smittyville to Knob Hill "S T02S R11E HOME MARYSVILLE "S T02S R12E AXTELL") BEATTIE "S "S T02S R10E T02S R09E T02S R08E EMSV T03S R10E T03S R13E T03S R12E NEMAHA T03S R11E KELL WINIFRED "S KELLY VLIETS BEST "S FKFT"S T04S R08E "S T04S R13E FRANKFORT BLRA NCRA") CENTRALIA CNTL "S VERMILLION T04S R07E BLUE RAPIDS T04S R10E T04S R11E T04S R12E BIGE "S T04S R09E KIHI GOFF CORNING LILLIS T05S R07E T05S R08E BRCW T06S R06E T05S R09E T05S R10E T05S R11E T05S R12E "S T05S R13E "S AMERICA CITY RILEY T06S R07E Rebuilding Kelly-S. Seneca 115 kV and building a new 115 kV line from Knob Hill Sub to the State border 14 T06S R11E POTTAWATOMIET06S R08E T06S R09E T06S R10E DULUTH SOLDIER T06S R12E JACKSON T06S R13E SLDR HAVENSVILLE WHEATON ONAGA "S Both scheduled to be completed by Dec 2010 er C re e 115.92 115.92 k t o P la tte City Other Projects: Northeast Kansas Building a new 115 kV line between Stranger Creek and Thornton Subs ")B SPRU 115.06 Stra ng "S THOR LEAVENWORTH "S ³ 7 WADS "S LEAVENWORTH HALL 115.42 "S rth St re et Scheduled to be completed by Dec 2010 STRA M to t. Jc o 11 5 .0 6 al Ja rb 36 115 . Jarbalo to Hallmark ar io n "S 345.06 LANSING 15 ") Other Projects: South-Central Kansas "S "S "S "S " S 17TH KENM NORT "S " S RIVE VIST "S ³7 MOSS 69.58C BEEC "S WEBS "S MINN "S "S MEAD PLAZ ")B "S TYLE HOOV "S ")B EAST " )"F)"F "S"S "S"S S FOWL" EASTBOROUGH "S "S S T27S R02W " ) " B RUTA S OSAG GRED HARR T27S R01W CANA GLEN "S "S SHER "S CENT WICHITA ")B " "S GODDARD "S ")B SOLIV "S INTE SENE 64TH "S "S WASS " S "S "S " "S BOEI )B MACA HYDR OATV OAKL "S 69.58 LIN "S 8. 1 13 HAYS ek to R T27S R06E T28S R04E T28S R05E T28S R06E MAGN ROSE "S Latham "S 3t4o 5.1R1os e Hill FARB "S "SCLWA T29S R01W CLEARWATER WACO PECK "S CLEARWATER RICH T29S R02E T29S R04E "S T29S R03E T29S R06E T29S R05E DOUGLASS CLEARWATER T30S R01W T30S R02W MULVANE ROCK 69.42 Bell to Peck PECK T30S R03E T30S R02E "S )"F "S Bell to SC3 Miller WILMOT "S T31S R01E T31S R01W AKRON T31S R03E T31S R02E T31S R04E "S )"F T31S R05E T31S R06E FLORAL FLOR T31S R07E "S SUMNER COWLEY NEW SALEM BURDEN OXFO DALTON WELLINGTON "S )"F T32S R02E )"F CAV6 T32S R04E T32S R05E ")B T32S R06E T32S R07E T32S R03E T32S R01E WINFIELD 16 T33S R02E T33S R01E 7RAIN ³ "S Building the new 138 kV line from Sumner Co. to Timber Junction TIMB AKRO 69.99 MAYFIELD T30S R07E UDAL BELLE PLAINE RIVERDALE T31S R02W ATLANTA T30S R01E BELL ANSON T30S R06E T30S R05E T30S R04E Rebuilding the 69 kV lines from Gill-Peck, Weaver-Rose Hill Junction, Timber Junction-Winfield T29S R07E DOUGLASS T29S R01E T29S R02W T28S R07E BUTLER DERBY CLEARWATER T27S R07E 69.100A 345.10B e Cr ll Hi ELPA HAYSVILLE BAYNESVILLE T27S R04E ose T27S R05E "S "S MIDL "S 3 olf W T28S R03E ROSE HILL 59TH "S "S "S )"F T28S R01E LEON MOBI WEAV )"F 69.100B "S AUGUSTA T27S R02E T28S R02E LEON ")BWHIT T27S R03E 138.27 69.46 18 "SSDAL 2 MURR VULC "S ANDOVER .0 "S "S "S WACO SEDGWICK "S "S "SSTEA OAKLAWN"S "S T28S R01W 138 . ANDO"S 13 8 SCHULTE T28S R02W 138.30 138.22A WEST COWS )"F T33S R05E T33S R04E T33S R06E T33S R07E DEXTER All scheduled to be completed in 2010 Other Projects: Southeast Kansas T22S R18E T22S R17E T22S R16E T22S R15E LEROY Rebuilding the 69 kV line from Green to Athens Subs GREE "S ANDERSON 69.27 CC4 Vernon to Green COFFEY T23S R18E T23S R17E T23S R16E T23S R15E GENEVA NEOSHO FALLS WOODSON ALLEN T24S R18E T24S R16E T24S R15E Athens to Orchard T25S R15E )"F Athens to CC4 Vernon VERNON Scheduled to be completed Spring 2011 ORCH T25S R16E "S YATES CENTER T24S R17E IOLA )"F PIQUA ATHE ")B OWLC BASSETT "S T25S R17E 17 T25S R18E ")F The New Delivery Point Addition/Modification Process Delivery Point Addition Task Force created Did so pre-emptively to assure customer voice represented Worked diligently to make process more efficient and fair Depicted in Attachment AQ of the SPP Tariff Went into effect May 1, 2010 Much more formal, with SPP involved Applies to all wholesale entities wanting to connect to Transmission Owners’ facilities KEPCo, KPP, Westar Genco 18 Add or Modify Delivery Point(s) Delivery Point Addition Process Is TC an Existing SPP Customer? Existing Tariff N Y GFA Conversion/ Rollover? New Transmission Service Request N New Transmission Service Request TO Host TO Review Customer sends Request for Change in Local Delivery Facilities to SPP and Host TO Aggregate Study Process PTP PTP or NITS Request? SPP NITS Preliminary Review by TO Preliminary Review by SPP Significant Impact to System? Y N Y Construction Required? N New or Updated PTP New or Updated NITSA Delivery Point Network Study (DPNS) Y Y Load Connection Study By TO Construction Required? N DP Letter Agreement New or Updated Interconnection Overview of the Westar-Customer Process… 1. Customer submits request to WR and SPP. 2. All related WR departments are notified. 6. Once SPP is satisfied with all necessary studies, a Delivery Point Agreement is issued to the Customer. 7. Once executed, WR and the Customer work closely together to determine milestones and the project scope. 3. Appropriate engineering group performs preliminary study and notifies SPP. 4. If necessary, a Load Connection Study Agreement is issued to Customer. 8. If applicable, Regulatory assures FERC is notified and that all related agreements are updated. 5. Once executed, WR performs LCS and issues LCS Report within 60 days of LCS Agreement’s execution. 9. If applicable, Customer is notified of related Wholesale Distribution Charge. 10. WR and Customer work together to assure timely completion. 20