1. Transmission Formula Rate Annual True-Up Customer Meeting
July 5, 2016

2. Today’s Agenda
Welcome and Introductions
Transmission Project Status Report
Westar TFR True-Up Discussion
Prairie Wind TFR True-Up Discussion
Questions

4. Westar Energy’s Annual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2015
July 5, 2016

5. Useful Resources For the Westar TFR: For the Prairie Wind TFR:
All related documents are in the folders on the left side of the screen.
For the Prairie Wind TFR:
Click “Prairie Wind Information” to find all related documents.

6. Quick Review of the Westar Energy Transmission Formula
Today
Quick Review of the Westar Energy Transmission Formula
The Results: Actual ATRR vs. Projected 2015 ATRR
Protocol Review

7. Quick Review: The Westar Transmission Formula (True-Up)
Gross Revenue Requirement (GRR) includes:
Actual Transmission Plant
Actual Transmission O&M
Actual Transmission Depreciation Expense
Taxes
Return
Net Revenue Requirement adjusts the GRR for:
Revenue Credits received for Point-to-Point Transmission Service and revenue received from Network customers outside the Westar pricing zone
“Rent” received (i.e. pole attachments)

8. A Refresher of the Timing (Example: 2017 Rate Year)
June 2016: True-up Amount from prior Rate Year (2015) is posted
October 2016: Projected ATRR for the next Rate Year (2017) is posted
Next Rate Year (2017) includes the 2015 True-up and 2017 Projected ATRR

9. Changes Related to FERC Order on ROE
FERC Order in Docket No. EL approved a reduction in base ROE from 10.8% to 9.8% with a cap on total ROE of 11.0%, effective August 20, 2014.
Projection for 2015 was recalculated at lower ROE and posted in supporting True-up Workpapers for the “June 15, 2016 True-up” posting
Actual for 2015 reflects ROE reduction
Actual for 2015 reflects Prior Period Adjustment for revisions related to plant balances, ADIT, EPRI dues, and reclassification of radial lines from transmission to distribution.
These factors affect the True Up amount (before interest) for calendar year 2015

10. The Results: Projected vs Actual ATRR for 2015
Westar’s Gross Rev. Requirement
$244,184,300
$244,119,207
Revenue Credits
($16,107,745)
($18,856,970)
Westar’s Net Rev. Requirement
$228,076,555 *
$225,262,237
Prior Period Adjustment
$2,236,697
True-Up Amount **
(before interest)
($577,621)
* Projected Net Revenue Requirement without the 2014 True-Up
** Amount to be applied to 2017 ATRR (plus interest), in the rates effective January 1, 2017

11. Updated Westar Formula Protocols
New Protocols were effective March 1, 2015
All TFR notifications will be provided to the SPP “Service List” exploder. Please sign up if you want to continue receiving notifications.
Data Request Period
75 calendar days after the Annual True-Up Meeting
60 calendar days after the Annual Projection Publication Date
Westar has 15 business days to respond to DRs

12. Updated Westar Formula Protocols
Challenge Procedures
Can make an Informal Challenge to Westar by January 31st
Westar will make every effort to respond within 20 business days
Can make a Formal Challenge at FERC until March 31st
Westar will submit to FERC an informational filing of its Annual Projection, including its Annual True-Up, by March 15th each year

13. A Review of Westar Formula Protocols
Today: July 5, 2016
Data requests regarding this true-up calculation may be submitted until September 20, 2016
Westar will make its best effort to respond within 15 business days of the receipt of such requests
Send comments or data requests via to:
Tanner Wealand at
Please cc: and

14. Summary
Thank you very much for participating in today’s meeting!
We are here to assist in any way possible.
Please let us know if you have any questions.
SAVE THE DATE FOR THE 2017 ANNUAL WESTAR ATRR MEETING: October 25, 2016

15. Prairie Wind Transmission’s Annual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2015
July 5, 2016

16. 345 kV Project: Wichita-Thistle-Woodward
Prairie Wind Transmission’s Project
Westar’s Wichita Sub to ITC’s Thistle Sub to OGE’s Woodward Sub
In-Service June 2014

17. Quick Review of the Prairie Wind Transmission (PWT) Formula
Today
Quick Review of the Prairie Wind Transmission (PWT) Formula
The Results: Actual ATRR vs. Projected 2015 ATRR
Protocol Review

18. Quick Review: The PWT Transmission Formula (True-Up)
Gross Revenue Requirement (GRR) includes:
Actual Transmission Plant
Actual Transmission O&M
Actual Transmission Depreciation Expense
Taxes
Return
Actual CWIP is included as an adjustment to Rate Base
Net Revenue Requirement adjusts the GRR for:
Revenue Credits received for Point-to-Point Transmission Service
True-up adjustment

19. June 2016: True-up Amount from prior Rate Year (2015) is posted
A Refresher of the Timing (Example: Rate Year)
June 2016: True-up Amount from prior Rate Year (2015) is posted
September 2016: Projected ATRR for the next Rate Year (2017) is posted
Next Rate Year (2017) includes the 2015 True-up and 2017 Projected ATRR

20. The Results: Projected vs Actual ATRR for 2015
PWT’s Gross Rev. Requirement
$22,187,637
$22,284,096
Revenue Credits
($ 1,937,935)
($ 1,523,325)
True-Up Adjustment
($ 4,713,579)
($ 4,713,579)
PWT’s Net Rev. Requirement
$15,536,123
$16,047,192
True-Up Amount*
(before interest)
$ 511,069
* Amount to be applied to 2017 ATRR (plus interest), in the rates effective January 1, 2017

21. A Review of PWT Formula Protocols
Today: July 5, 2016
Data requests regarding this true-up calculation may be submitted until September 28, 2016
Westar will make its best effort to respond within 15 business days of the receipt of such requests
Send comments or data requests via to:
Tanner Wealand at
Please cc: and

22. Summary
Thank you very much for participating in today’s meeting!
We are here to assist in any way possible.
Please let us know if you have any questions.
Safe travels home!
SAVE THE DATE FOR THE 2017 ANNUAL PRAIRIE WIND ATRR MEETING: October 4, 2016