Customer Meeting
Annual Update TFR
Transmission Formula Rate
October 26, 2010
WELCOME
1
Protocols
Transmission Formula Rate
Definitions
 “Rate Year”
 is defined as January 1 through December 31 (2011)
 “True-Up”
 is completed on or before June 15 each calendar year.
 based on historical (actual) data - primarily Form 1 data from 2009
 “Annual Update”




recalculates the ATRR and Formula Rate for new Rate Year (2011)
uses historical data collected during “True-Up” Phase
adds in the projected data
is calculated and posted on or before October 15 each calendar year.
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Protocols
Transmission Formula Rate
Timeline
*********************************************************************************************
 “Rate Year”: January 1 – December 31, 2011
*********************************************************************************************
 “True Up” Update: June 15, 2010

“True Up” Customer Meeting: June 22, 2010
 This date is kick off for Review Period

“True Up” Information Requests Period – 75 days: August 30, 2010

Issues - Westar Energy Response Date:
 Good faith effort to respond within 10 business days from date of information request.

Additional periods for data review resolutions, per Protocols posted on WR OASIS
**********************************************************************************************
 “Annual Update”: October 15, 2010

“Annual Update” Customer Meeting: October 26, 2010

Potential Repost of Annual Update: November 30, 2010
**********************************************************************************************
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Protocols
Transmission Formula Rate
OASIS Postings
and Data Requests
 OASIS Posting Requirements:




Updated Calculation
Protocols
Accounting Manual and changes
Data Request Submission Address
 Submission of Data Requests to:
Sheila Gropp
Westar Energy
818 Kansas Avenue
Topeka, KS 66612
Sheila.A.Gropp@WestarEnergy.com
Please also cc: Leslie.Wines@WestarEnergy.com (new)
 Please provide all Data Requests in writing via email or letter.
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Transmission Formula Rate
Key Data Locations
FERC Form 1 Data - 2009:
FERC.gov
(Westar Energy Form 1)
(Kansas Gas & Electric Form 1)
Formula Rate Postings:
Westar Energy Oasis
http://www.oatioasis.com (select WR)
Southwest Power Pool Oasis
http://oatioasis.com (select SWPP)
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Transmission Formula Rate
Westar Energy’s Oasis Site
Locating Site
http://www.oatioasis.com/
Click on SPP Icon. It’s a hyperlink to SPP Oasis Node
that contains SPP Transmission Owners Oasis Sites.
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Westar Energy’s
Oasis Site
Locating Site - 2
Transmission Formula Rate
SPP Transmission Owners Oasis Sites:
Click on Westar Icon.
It’s a hyperlink to new Westar Energy Oasis Site.
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Westar Energy’s
Oasis Site
Finding Documents
Transmission Formula Rate
The Annual Update is under
this Document Directory.
Click on the file folder icon
or name to open.
The sub-folders will appear.
Click on the Oct 15, 2010
Update – Annual Folder.
Any documents for that
update will be displayed.
Update Results
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Westar Energy’s
Oasis Site
Locating Accounting Manual
Transmission Formula Rate
Accounting Manual Login
Accounting Data User ID:
AFSReader
Accounting Data Password:
AFSReader#1
Under the Transmission Formula Rate (TFR) 2011
Rates Folder, is the sub-folder –
“Accounting Information as of 12/31/2009”
Select this folder to see available files.
Under the Accounting Information as of
12/31/2009 Folder are several files.
For the Accounting Manual, click on:
“Accounting Manual as of 12/31/2009”
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Transmission Formula Rate
Southwest Power Pool
Selecting SPP Oasis Site
SPP Transmission Provider Oasis Sites:
Click on SPP Icon.
It’s a hyperlink to Southwest Power Pool Oasis Site.
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Transmission Formula Rate
Southwest Power Pool
Oasis Site
Member Related Postings
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Formula Inputs
Transmission Formula Rate
Index of Template Pages
Tab ID
Schedule/Worksheet Designation
Description
Date to be Posted
Actual Net Rev Req
Schedule Actual Net Rev Req
Actual net revenue requirements for most recent calendar year
June 15
Gross Rev Req
Schedule Actual Gross Rev Req
Actual gross revenue requirements for most recent calendar year
June 15
A-1
Revenue Credit
Actual revenue credits
June 15
A-2
Actual transmission load
WE Revenues
June 15
A-3
Actual Retail Adder
WE Divisor
June 15
A-4
Actual O&M Exclusions (WEN)
WE Retail Adder
June 15
A-5
Actual Accum Deferred Income Taxes (WEN)
WEN O&M Exclusions
June 15
A-6
Actual O&M Exclusions (WES)
WEN ADIT
June 15
A-7
Actual Accum Deferred Income Taxes (WEN)
WES O&M Exclusions
June 15
A-8
Actual Depreciation Rate Calculation
WES ADIT
June 15
A-9
Actual Base Plan Funded Projects
Depreciation Adjustment
June 15
A-10
Actual Wages and Salaries
Plant Additions for Upcoming Year
June 15
A-11
Actual Incentive Return on Incentive Plant
Incentive Plant Additions
June 15
A-12
Actual Economic Portfolio Funded Projects
Base Plan Funded Additions
June 15
TU
True-up
True-up Adjustment and Interest Calculation
Oct 15
BPF
BPF Summary
Total Actual and Projected BPF projects
Oct 15
EPP
EPP Summary
Total Actual and Projected EPP projects
Oct 15
Projected Net Rev Req
Projected Net Rev Requirement
Projected net revenue requirements for next calendar year
Oct 15
Projected Gross Rev Req
Projected Gross Rev Req
Projected gross revenue requirements for next calendar year
Oct 15
P-1
Transmission Plant
Projected transmission plant for next calendar year
Oct 15
P-2
Exp. & Rev. Credits
Projected expenses and revenue credits for next calendar year
Oct 15
P-3
Trans. Network Load
Projected transmission load for next calendar year
Oct 15
P-4
BPF Projects
Projected Base Plan Funded Projects
Oct 15
P-5
Econ. Projects
Projected Economic Portfolio Funded Projects
Oct 15
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Formula Components
Transmission Formula Rate
Annual Update
True-Up and Projected Plant
 Data Included
 Historical 2009 financial data
Westar Energy Form 1
Kansas Gas & Electric Form 1
 FERC Approved Incentive Plant – Actual
 SPP Projects – Actual
 True-Up data (FERC Interest, true-up between Projected 2009 and Actual 2009)
 Projected Construction development
 Includes Plant Projected to be in-service in 2011
 Template References:
 Template Form 1 Reference format:
Page, Line, Column
 Worksheet Reference format:
Worksheet P-1 (with section if applicable)
 Yellow areas are change areas
References and Clarifications: If you see any references that are not
correct or if you have any suggestion, please let me know.
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Transmission Formula Rate
October 15, 2010
Annual Update
Key Data Impacts
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Transmission Formula Rate
Projected Update
Gross Proj Rev Reqm
2007 Ice Storm and Reserves
• 2007 Ice Storm
– Amortization schedule will be completed in 2011
– Therefore, there will be a zero balance for EOY 2011 (Line 9a)
– Reserve will continue until used in the future. (Line 9b)
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Projected Update
Gross Proj Rev Reqm
Plant Additions
Transmission Formula Rate
• The Projected Plant Additions - Compare 2010 vs. 2011
Projected Transmission Plant Additions
2010
$160,279,187
2011
$92,066,000
Zonal Additions Projected
$67,999,050
$63,004,308
SPP Funded Plant Additions Projected
$92,280,137
$29,061,692
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Transmission Formula Rate
TU
“True-Up” with Interest
June 15, 2010 “True-Up” Update (posted June 15, 2010)
During this update, a comparison of the
2009 Projected ATRR and 2009 Actual ATRR was calculated.
The difference was ($16.612,099)
October 15, 2010 “Annual Projected” Update (posted October 15, 2010)
During this update, the interest is applied to the “True-Up”. After the
application of FERC Interest, the total “true-up” amount was ($17,822,290).
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Transmission Formula Rate
“True-Up” with Interest
Net Projected Revenue
Requirement
The 2009 True-Up with Interest is applied = ($17,822,230).
Net Westar Energy Revenue Requirement is determined = $147,871,037.
18
Transmission Formula Rate
Zonal vs. Regional
Net ATRR
Net Projected Revenue Requirements
BPF Projects Summary >> T9 Col q = NPRR Line 9
True-Up
19
Transmission Formula Rate
SPP Attachment H
Zonal Net ATRR and
SPP Regional Net ATRR
• SPP Regional Net ATRR will be allocated by SPP
– SPP will allocate this ATRR to the zones according to benefit
and Load Ratio Share
– SPP is planning a FERC Filing around November 15, 2010
which will include the new allocations by zone.
• Zonal Net ATRR
– This ATRR will allocated at 100% to the Westar Zone
• Total Net ATRR = $147,871,037
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Transmission Formula Rate
2010
Westar Net ATRR
Revenue Requirements
Comparison
2011
Westar Net ATRR
Zonal
$115,503,530
Zonal
$132,056,555
SPP BPF
Funding
$19,256,992
SPP BPF
Funding
$16,159,077
~14%
~16%
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Transmission Formula Rate
Cost Estimates
22
~9% Increase for Zonal ATRR
SPP Current OATT
Attachment H Values
Transmission Formula Rate
Cost Estimate
as of June 19, 2010
These values can change at any time
during a calendar year. Modifications are
based on any new Transmission Owner
ATRR. SPP files updates with FERC for
inclusion in SPP OATT Rates.
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Transmission Formula Rate
Meeting Questions
- Responses Researched
Q1 from Kathy Brinker, NMEC
Q1: Is there a Storm Reserve Limit?
A1: There is no limitation.
Q 2 and Q3 from Larry Holloway, KPP
Q2: Can Storm Reserve be a negative value?
A2: The Transmission Reserve is only a positive value or zero.
Q3: Is Storm Reserve a part of Return?
A3: Yes. Storm Reserve is a reduction to Rate Base.
Q4 from Michael Wegner, KCC
Q4: Was the 69 kV storm damage in SE Kansas this year a reduction
to the Storm Reserve?
A4: Yes.
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Transmission Formula Rate
Thank You!
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