Great River Energy
2013 Annual True-Up Meeting
August 7, 2014
Agenda
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Introduction
Disclosure
Meeting purpose
Discuss the Regulatory Timeline
Review the 2013 Annual True-Up results
– actual to forecast comparison
– discuss drivers
• Discuss next steps
• Question / Answer
Disclosure
All figures in this document are preliminary and
subject to change. Per the revised Formula Rate
Protocols, figures will be finalized after the
Information Exchange, Challenge Procedures, and
MISO’s review are complete1.
1 Awaiting
FERC’s final decision on Docket ER13-2379 on FERC’s investigation into
MISO Formula Rate Protocols
Meeting Purpose
• The revised Formula Rate Protocols require GRE to hold an
Annual True-Up Meeting among Interested Parties between the
Publication Date (June 1) and September 1
• Compare actual 2013 values against projections on which the
2013 rates were based
• Review the Annual True-Up Adjustment calculation
Formula Rate Protocol Timeline
June 1
•Deadline
for Annual
True-Up
•Info
Exchange
Period and
Review
Period
begin
June 1 –
September 1
•Deadline
For Annual
True-Up
Meeting
September 1
– October 1
•Deadline to
Post
Projected Net
Revenue
Requirement
September 1 –
October 1
November 1
December 1
January 10
January 31
February 28
March 15
March 31
•Deadline for
meeting on
Projected Net
Revenue
Requirement
•Deadline
for joint
meeting on
regional
cost-shared
projects
•Deadline for
Interested
Parties to
submit
information
requests
•Deadline for
Transmission
Owner to
respond to
information
requests
•Deadline for
Interested
Parties to
submit
Informal
Challenges
•Deadline for
transmission
owner to
respond to
Informal
Challenges
•Deadline to
submit
Informational
Filing to the
Commission
•Deadline for
Interested
Parties to file
Formal
Challenge at
the
Commission
2013 True-Up Adjustment Overview
Net Revenue Requirement
Actual
$99,203,840
Projected
Difference
$96,975,134 $2,228,705 (a)
2,012,415
2,023,751
Divisor True-Up
Divisor
11,336
Projected Rate ($/kW/Yr)
$47.919
True-Up (Divisor Difference x Projected Rate)
$543,204
(b)
Interest
$79,442
(c)
Total 2013 True-Up Adjustment (Under Recovery)
$2,851,352 (a+b+c)
2013 ATTR Summary
$99.2
$97.0
$73.0
$53.0
$33.0
Actual ATRR
Projected ATRR
$93.0
$2.2M Difference
(2.3% )
$13.0
$0.96
$0.94
$(0.96)
$(7.0)
Return
Operating Expenses
$1.46
$(0.17)
Attachment GG Adjustment
Attachment MM Adjustment
Revenue Credits
Revenue Requirement Overview
Projected 2013 Net Revenue Requirement
$96,975,134
Actual to Projected Differences:
Return
$963,753
O&M Expense
$(963,019)
Attachment GG Adjustment
$(165,196)
Attachment MM Adjustment
$935,421
Revenue Credits
$1,457,747
Actual 2013 Net Revenue Requirement
$99,203,840
Overall Difference
$2,228,705
Return Overview
Projected 2013 Rate Base
$671,736,732
Actual to Projected Differences:
Net Plant
$(13,839,565)
Construction Work In Progress
$2,306,365
Adjustments to Rate Base *
$333,388
Land Held for Future Use
$0
Working Capital
$389,971
Actual 2013 Rate Base
$660,260,116
Overall Difference
$(11,476,617)
*offset to Rate Base
Return Overview
Actual Return %
LTD
Equity
Return
D/E Ratio Weighted
85.05%
4.77% (a)
14.95%
1.85% (b)
6.63% (a+b)
Projected Return %
LTD
Equity
Return
Overall Difference = 0.2012%
D/E Ratio Weighted
86.06%
4.70% (a)
13.94%
1.73% (b)
6.42% (a+b)
Return Overview
Rate Base
Actual to Projected Difference
Actual Return Rate
$(11,476,617)
6.63%
$(760,342) (a)
Return Rate
Projected Rate Base
Actual to Projected Difference in Return %
Overall Difference in Return
$671,736,732
0.2012%
$1,351,390 (b)
$591,048 (a+b)
Operating Expense Overview
Projected 2013 Operating Expense
$78,815,432
Actual to Projected Differences:
O&M (includes A&G)
$(755,842)
Depreciation Expense
$(332,354)
Taxes Other Than Income Taxes
$125,177
Income Taxes
$0
Actual 2013 Operating Expense
$77,852,413
Overall Difference
$(963,019)
Attachment GG & MM Overview
Attachment GG
Projected ATRR
$17,872,720
Attachment MM
Projected ATRR
$5,998,423
Actual to Projected Differences:
Actual to Projected Differences:
Annual Expense Charge
$64,038
Annual Expense Charge
$(4,983)
Annual Return Charge
$199,605
Annual Return Charge
$(429,469)
Depreciation Expense
$(98,447)
Depreciation Expense
$(500,970)
Actual ATRR
$18,037,916
Actual ATRR
$5,063,002
Overall Difference
$165,196
Overall Difference
$(935,421)
Revenue Credits Overview
Projected 2013 Revenue Credits
$4,338,375
Actual to Projected Differences:
Account 454 (Rent From Electric Property) $(629,236)
Account 456 (Other Electric Revenues)
$(828,511)
Actual 2013 Revenue Credits
$2,880,628
Overall Difference
$(1,457,747)
Next Steps
• Information Exchange Procedures*
– Interested Parties have until December 1, 2014** to submit information
requests
– GRE shall make a good faith effort to respond within 15 business days
of receipt of such request
– Any information request should be submitted in writing to:
• Todd Butkowski (tbutkowski@GREnergy.com) and
• Seth Nelson (snelson@GREnergy.com)
– All questions and answers will be distributed by e-mail to the Interested
Party who asked the question(s) and will be posted on the MISO
website and OASIS
* Awaiting
**
FERC’s final decision on Docket ER13-2379 on FERC’s investigation into MISO Formula Rate Protocols
If December 1 falls on a weekend or a holiday recognized by FERC, the deadline for submitting the request will be extended to the next business day
Questions?