1. Transmission Formula Rate Annual True-Up Customer Meeting
July 6, 2018

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

3. JEC – East Manhattan 230kV Rebuild
Northeast – Kenmar 69kV Rebuild
Auburn – Keene 115kV Rebuild
Carbondale – Four Corners 115kV Rebuild

4. Westar Energy’s Annual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2017
July 6, 2018

5. Quick Review of the Westar Energy Transmission Formula
Today
Quick Review of the Westar Energy Transmission Formula
The Results: Actual ATRR vs. Projected 2017 ATRR
Protocol Review

6. 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)
Posted to Westar’s OASIS site (TFR 2019 Rates folder):
Direct link to excel file:

7. A Refresher of the Timing
June 2018: True-up Amount from prior Rate Year (2017) is posted
October 2017: Projected ATRR for the next Rate Year (2019) is posted
Next Rate Year (2019) includes the 2017 True-up and 2019 Projected ATRR

8. Prior Period Adjustment
Transmission Formula Rate (TFR) Corrections
Correction for the deferral to and amortization of the Ad Valorem Taxes regulatory asset in response to KEPCo challenge
Subtracted FERC p. 263 col. (i) and replaced with FERC p. 262 cols. (d) + (f)
Years
Corrected amount with interest included in June 2018 posting is ~$3.5 million
FERC Order issued 05/25/2018 in docket ER
Authorizing recovery of the deferral to and amortization of the Ad Valorem Taxes regulatory asset in formula rates going forward

9. Tax Reform
Tax Cuts & Jobs Act became effective on 1/1/2018 and lowered the federal income tax rate from 35% to 21%
April 4th - Westar filed a waiver request in docket number ER to lower the federal income tax rate in our 2018 TFR projection, which was originally posted in October 2017.
April 30th - FERC approved our waiver request
May 2nd - Re-posted 2018 TFR Projection with $23 million reduction to revenue requirement
SPP posted Revenue Requirements and Rates file for May 2018 to adjust rates going forward and will re-bill back to January 2018

10. The Results: Projected vs Actual ATRR for 2017
Westar’s Gross Rev. Requirement
$284,388,131
$262,220,594
Revenue Credits
($18,856,970)
($15,108,664)
Westar’s Net Rev. Requirement
$265,531,161 *
$247,111,931
Prior Period Adjustment
$3,500,718
True-Up Amount **
(before interest)
($14,918,512)
* Projected Net Revenue Requirement without the 2016 True-Up
** Amount to be applied to 2019 ATRR (plus interest), in the rates effective January 1, 2019

11. Westar Formula Protocols
Date
Publication Date
June 15
Customer Meeting
July 15
Customer Data Requests
June 15 – Sep 19
Informal Challenge
Jan 31
Formal Challenge
Mar 31

12. Send comments or data requests via e-mail to:
Today: July 6, 2018
Data requests regarding this true-up calculation may be submitted until September 19, 2018
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:
Maia Tichenor at
Please cc: and

13. 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.
The 2019 Annual Westar ATRR Projection meeting will be held sometime around: October 25, 2018