Definitions of items used to calculate your monthly bill: Taking energy to heart. RATES AT WESTAR ENERGY Customer Charge Transmission Delivery Charge The Customer Charge partially recovers a portion of the annual investment and operating costs incurred by the company in making service available to customers, e.g., service conductor and meter investment, meter reading, billing, customer accounting and customer service expenses. The Transmission Delivery Charge reflects costs associated with building and maintaining Westar Energy’s transmission system. The charge will be adjusted periodically under the KCC’s oversight to reflect changes in federal regulation of transmission costs. Energy Charge The Environmental Cost Recovery Rider recovers Westar Energy’s investment since its most recent rate review in equipment to meet environmental standards. This charge adjusts annually. Environmental Cost Recovery Rider The Energy Charge is the cost of each kilowatt-hour (kWh) applicable to metered or otherwise established electric energy consumption in kilowatt-hours. This charge recovers the variable operating costs incurred by the company in customer kilowatt-hours,e.g., variable production plant operating and maintenance expenses, as well as any additional nonvariable costs not recovered in the customer charge and/or demand charge, which may be applicable. Energy Efficiency Rider The Energy Efficiency Rider recovers Westar Energy’s investment in energy efficiency programs, including consumer education, Building Operator Certification, the WattSaver programmable thermostat demand response program and other energy effiency demand response initiatives. Demand Charge Franchise Fees The Demand Charge is applicable to metered or otherwise established kilowatt demands. This charge recovers a portion of the company’s annual fixed investment and operating costs associated with buildings as well as a portion of the company’s investment and operating costs incurred in providing electric capacity capable of supplying a customer’s maximum demand at any time, e.g., transformers, distribution lines and substations, and generation and transmission facilities. Where applicable, Westar Energy collects city-imposed franchise fees. The franchise fee percentage may vary, depending on the city. Sales Tax Unless a partial or total exemption has been approved by the taxing authority, a 6.15% state sales tax is added to the bill. In addition, many cities and counties have imposed local sales taxes. The local sales tax is added to the state sales tax and is shown as total sales tax on the bill. Demand is measured in kilowatt-hours with a meter that measures the greatest rate of electricity used during any 15-minute time frame during the billing period. Late Fee A 2% late payment charge is assessed on bills that are delinquent. Fuel Charge Other Charges The Fuel Charge will encompass the actual fuel costs to produce electricity service for our retail customers less profits from our wholesale energy sales. Wholesale sales are transactions where Westar sells energy to other entities such as neighboring utilities or municipalities. Quarterly, Westar Energy will submit an estimate of fuel costs to provide electricity with the Kansas Corporation Commission (KCC). These costs will be reflected on your bills. Annually, we will compare the estimates with the actual costs and make an adjustment to ensure you are paying only the actual fuel costs. This adjustment will be paid or collected over the next 12 months. When applicable, Westar Energy may impose additional adjustments and/or surcharges as approved by the KCC. Property Tax Surcharge The Property Tax Surcharge reflects changes in the amount of property tax since Westar Energy’s most recent rate review. The charge adjusts annually. Taking energy to heart. These examples use rates effective December, 2013. WestarEnergy.com 1-800-383-1183 © 2013 Westar Energy. All Rights Reserved. Small General Service, Medium General Service and High Load Factor electric rate summary. This is a summary of Small General Service, Medium General Service and High Load Factor electric rates of Westar Energy South, as approved by the Kansas Corporation Commission. Small General Service, Medium General Service and High Load Factor electric rate summary. Qualified customers may receive their electric service under church and school rates or recreational lighting rates. Commercial and industrial customers with an average electrical demand greater than 200 kilowatts (kW) are served under the Medium General Service Rate. Commercial and industrial customers with electrical demand of 1,000 kW or greater are eligible for service under High Load Factor Rates. All other nonresidential customers with an average demand of 200 kW or less are served under the Small General Service Rate. Industrial and certain commercial customers who build a new plant or expand existing facilities, or who add more than 200 kW of new load and create new jobs, may be eligible for the Economic Development Rider. Small General Service Customer Charge.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.00 Demand Charge For the months of June through September: $7.55 per kW for all kW more than 5 kW For the months of October through May: $3.91 per kW for more than 5 kW Energy Charge $0.062158 per kWh for the first 1,200 kWh $0.043188 per kWh for all additional kWh Plus all applicable adjustments and surcharges. Sample Bill Calculation This example is based on a customer using 10,000 kWh and having a demand of 50 kW during a winter month. Customer Charge......................................... $20.00 Energy Charge 1,200 kWh x $0.062158................................................ $74.59 8,800 kWh x $0.043188 ..............................................$380.05 Medium General Service The Medium General Service – commercial and industrial customers with electrical demand greater than 200 kW are eligible to be served under this tariff. Customer Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100.00 Demand Charge $12.506021 per kW Energy Charge For the months of June through September: $0.019261 per kWh For the months of October through May: $0.014627 per kWh Plus all applicable adjustments and surcharges. Sample Bill Calculation This example is based on a customer using 80,000 kWh and having a demand of 250 kW during a winter month. High Load Factor This rate applies to customers with electrical demand of 1,000 kW or more. Customer Charge...........................................$250.00 Demand Charge $11.616890 per kW for service taken at primary voltage Energy Charge $0.013085 per kWh for all kWh Plus all applicable adjustments and surcharges. Sample Bill Calculation This example is based on a customer using 300,000 kWh and a 1,000 kW demand at primary voltage. Customer Charge.......................................... $250.00 Energy Charge 300,000 kWh x $0.013085. . ....................................... $3,925.50 Customer Charge.......................................... $100.00 Energy Charge Demand Charge 45 kW x $3.91......................................................................... $175.95 Demand Charge 300,000 kWh x $0.021836................................................... $6,550.80 10,000 kWh x $0.021836........................................................ $218.36 Fuel Charge** 1,000 kW x $3.579956......................................................... $3,579.96 10,000 kWh x $0.013544........................................................ $135.44 Transmission Charge** 1,000 kW x $0.732099............................................................ $732.10 10,000 kWh x $0.003029...........................................................$30.29 Environmental Cost Recovery Rider** 300,000 kWh x $0.000538...................................................... $161.40 10,000 kWh x $0.000538.............................................................$5.38 Energy Efficiency Rider** 10,000 kWh x $0.001106...........................................................$11.06 Total Energy Charge...................................... $454.64 Demand Charge: 50 kW-5 kW = 45 kW Fuel Charge** Transmission Charge** Environmental Cost Recovery Rider** Energy Efficiency Rider** Property Tax Surcharge** SUBTOTAL..................................................$1,051.12 Franchise Fee* $1,051.12 x 3%...........................................................................$31.53 SUBTOTAL..................................................$1,082.65 Sales Tax* State $1,082.65 x 6.15% ............................................................$66.58 Local $1,082.65 x 1%.................................................................$10.83 TOTAL Sales Tax.............................................. $77.41 TOTAL BILL............................................ $1,160.06 *Amounts vary by location. ** Rates may vary. 1,000 kW x $11.616890..................................................... $11,616.89 80,000 kWh x $0.014627..................................................... $1,170.16 Fuel Charge** 250 kW x $12.506021.......................................................... $3,126.51 Transmission Charge** 80,000 kWh x $0.021836..................................................... $1,746.88 Environmental Cost Recovery Rider** 250 kW x $2.296602............................................................... $574.15 Energy Efficiency Rider** 250 kW x $0.713655............................................................... $178.41 Property Tax Surcharge** 80,000 kWh x $0.000538...........................................................$43.04 Property Tax Surcharge** SUBTOTAL................................................ $27,148.45 Franchise Fee* SUBTOTAL..................................................$7,027.63 Franchise Fee* SUBTOTAL................................................ $27,962.90 Sales Tax* SUBTOTAL..................................................$7,238.46 Sales Tax* TOTAL Sales Tax..................................................... $1,999.35 300,000 kWh x $0.001106...................................................... $331.80 80,000 kWh x $0.001106...........................................................$88.48 $27,148.45 x 3%...................................................................... $814.45 $7,027.63 x 3% ....................................................................... $210.83 State $27,962.90 x 6.15% .................................................... $1,719.72 Local $27,962.90 x 1%............................................................ $279.63 State $7,238.46 x 6.15% ......................................................... $445.17 Local $7,238.46 x 1%................................................................$72.38 TOTAL Sales Tax........................................................ $517.55 TOTAL BILL...................................................... $7,756.01 TOTAL BILL....................................................$29,962.25 Westar Energy will provide more information about specific rates and how to use electricity efficiently and economically. We will also help you determine which rate will best match your needs at the lowest cost. Contact us at the Customer Contact Center at 1-800-383-1183.