WELCOME Presentation by Sheila Gropp Westar Energy Regulatory

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WELCOME

Presentation bySheila Gropp

Westar Energy Regulatory

Transmission Formula Rate – 2012 ATRR

Customer Meeting“True-Up” TFR

June 28, 2011

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ProtocolsDefinitions

“Rate Year” is defined as January 1 through December 31 (2012)

“True-Up” is completed on or before June 15 each calendar year. based on historical (actual) data - primarily Form 1 data from 2010

“Annual Update” calculates the ATRR and Formula Rate for new Rate Year (2012) 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.

Transmission Formula RateTransmission Formula Rate – 2012 ATRR

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ProtocolsTimeline

********************************************************************************************* “Rate Year”: January 1 – December 31, 2012********************************************************************************************* “True Up” Update: June 15, 2011

“True Up” Customer Meeting: June 28, 2011 This date is kick off for Review Period

“True Up” Information Requests Period – 75 days: September 11, 2011

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, 2011

“Annual Update” Customer Meeting: October 25, 2011

Potential Repost of Annual Update: November 30, 2011**********************************************************************************************


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ProtocolsOASIS Postings

and Data Requests

OASIS Posting Requirements: Updated Calculation Protocols Accounting Manual and changes Data Request Submission Address

Submission of Data Requests to: Sheila GroppWestar Energy818 Kansas AvenueTopeka, KS [email protected] also cc: [email protected]

Please provide all Data Requests in writing via email or letter.


mailto:[email protected]

mailto:[email protected]

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Key Data Locations

FERC Form 1 Data - 2010: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 Oasishttp://oatioasis.com (select SPP)


http://www.oatioasis.com/

http://oatioasis.com/





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Westar Energy’s Oasis SiteLocating Site


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

SPP Transmission Owners Oasis Sites:

Click on Westar Icon. It’s a hyperlink to Westar Energy Oasis Site.


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Finding Documents

The “True-Up” Update is under this Document Directory.

Click on the file folder icon or name to open.

The sub-folders will appear.

Click on the June 15, 2011 Update – “True-Up” Folder.

Any documents or subfolders for that update will be displayed.

Update Calculation

Transmission Formula Rate

Additional Sources


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Locating Accounting Manual

Accounting Manual LoginAccounting Data User ID: AFSReaderAccounting Data Password: AFSReader#1

Under the Transmission Formula Rate (TFR) 2012 Rates Folder, is the sub-folder –

“Accounting Information as of 20101231”

Select this folder to see available files.

Under the “Accounting Information as of 20101231” folder are several files.

Accounting Change information in these files.

For the Accounting Manual, click on: “Accounting Manual as of 20101231”


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SPP Transmission Provider Oasis Sites:

Click on SPP Icon. It’s a hyperlink to Southwest Power Pool Oasis Site.

Southwest Power PoolSelecting SPP Oasis Site Transmission Formula RateTransmission Formula Rate – 2012 ATRR

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Southwest Power PoolOasis Site

Member Related PostingsTransmission Formula RateTransmission Formula Rate – 2012 ATRR

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Formula InputsIndex 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 True-Up Update

Data Included Historical 2010 financial data

Westar Energy Form 1Kansas Gas & Electric Form 1

FERC Approved Incentive Plant – Actual SPP Projects – Actual True-Up data (True-up between Projected 2010 and Actual 2010)

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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June 15, 2011“True-Up” Update

Key Data Impacts


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“True-Up” UpdateGeneration Leads Exclusion

• In 2010, a transfer of transmission plant that was solely for generation leads was completed. This transfer was made from Transmission Plant to Generation Plant.

• In prior years, this transmission plant was excluded from the TFR calculations [AGR, Page 3, Line 3]. In 2009, the amount was $2,330,375.

• Since these assets were removed from transmission plant in 2010, there is no need to exclude in the TFR.

• This impacts the Transmission Plant Allocator (TP) in the TFR. The 2010 TP Allocator is now 100% (1.0000) in comparison the 2009 TP Allocator of 99.76% (0.9976).


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“True-Up” Update2010 Projected ATRR without

2008 True-Up

2008 True-Up before removal

2010 ATRR without True-Up

2010 ATRR that included 2008 True-Up


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“True-Up” UpdateTrue-Up Amounts

June 15, 2011 “True-Up” Update (posted June 15, 2011)

During this update, a comparison of the2010 Projected ATRR and 2010 Actual ATRR was calculated.

The difference was $4,482,742. This was an under-collection before interest.

During the “Annual” update (posted on or before October 15, 2011), the interest will be applied to the “True-Up” amounts.


The True-Up Amounts with Interest will be applied to the 2012 ATRR.


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“True-Up” UpdateGross Plant Additions

• Comparing Gross Plant Additions: Projected vs. Actual 2010

• Large Projects placed In-Service in 2010:• Wichita-Reno-Summit Project: Reno-Summit segment ($95m)• Knob Hill – Steele City 115kV ($20.5m)• And others:

• Jarbalo – Pentagon, Ft Junction – Anzio, Kelly – Seneca, 27th & Croco – Tecumseh Hill, Circle – HEC GT, Coffeyville Tap – Dearing, etc.


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Transmission Formula RateAny Questions


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