1. 1 Transmission Formula Rate – 2012 ATRR Customer Meeting “True-Up” TFR June 28, 2011

2. 2 Protocols Definitions  “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

3. 3 Protocols Timeline *********************************************************************************************  “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 ********************************************************************************************** Transmission Formula RateTransmission Formula Rate – 2012 ATRR

4. 4 Protocols OASIS Postings and Data Requests  OASIS Posting Requirements:  Updated Calculation  Protocols  Accounting Manual and changes  Data Request Submission Address  Submission of Data Requests to: Sheila Gropp Westar Energy 818 Kansas Avenue Topeka, KS 66612 Sheila.Gropp@WestarEnergy.com Please also cc: Leslie.Wines@WestarEnergy.comLeslie.Wines@WestarEnergy.com  Please provide all Data Requests in writing via email or letter. Transmission Formula RateTransmission Formula Rate – 2012 ATRR

5. 5 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 Oasis http://oatioasis.com (select SPP) Transmission Formula RateTransmission Formula Rate – 2012 ATRR

6. 6 Westar Energy’s Oasis Site Locating Site http://www.oatioasis.com/ Click on SPP Icon. It’s a hyperlink to SPP Oasis Node that contains SPP Transmission Owners Oasis Sites. Transmission Formula RateTransmission Formula Rate – 2012 ATRR

7. 7 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. Transmission Formula RateTransmission Formula Rate – 2012 ATRR

8. 8 Westar Energy’s Oasis Site 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 Transmission Formula Rate – 2012 ATRR

9. 9 Westar Energy’s Oasis Site Locating Accounting Manual Accounting Manual Login Accounting Data User ID:AFSReader Accounting 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” Transmission Formula RateTransmission Formula Rate – 2012 ATRR

10. 10 SPP Transmission Provider Oasis Sites: Click on SPP Icon. It’s a hyperlink to Southwest Power Pool Oasis Site. Southwest Power Pool Selecting SPP Oasis Site Transmission Formula RateTransmission Formula Rate – 2012 ATRR

11. 11 Southwest Power Pool Oasis Site Member Related Postings Transmission Formula RateTransmission Formula Rate – 2012 ATRR

12. 12 Formula Inputs Index of Template Pages Tab IDSchedule/Worksheet DesignationDescriptionDate to be Posted Actual Net Rev ReqSchedule Actual Net Rev ReqActual net revenue requirements for most recent calendar yearJune 15 Gross Rev ReqSchedule Actual Gross Rev ReqActual gross revenue requirements for most recent calendar yearJune 15 A-1Revenue CreditActual revenue creditsJune 15 A-2Actual transmission loadWE RevenuesJune 15 A-3Actual Retail AdderWE DivisorJune 15 A-4Actual O&M Exclusions (WEN)WE Retail AdderJune 15 A-5Actual Accum Deferred Income Taxes (WEN)WEN O&M ExclusionsJune 15 A-6Actual O&M Exclusions (WES)WEN ADITJune 15 A-7Actual Accum Deferred Income Taxes (WEN)WES O&M ExclusionsJune 15 A-8Actual Depreciation Rate CalculationWES ADITJune 15 A-9Actual Base Plan Funded ProjectsDepreciation AdjustmentJune 15 A-10Actual Wages and SalariesPlant Additions for Upcoming YearJune 15 A-11Actual Incentive Return on Incentive PlantIncentive Plant AdditionsJune 15 A-12Actual Economic Portfolio Funded ProjectsBase Plan Funded AdditionsJune 15 TUTrue-upTrue-up Adjustment and Interest CalculationOct 15 BPFBPF SummaryTotal Actual and Projected BPF projectsOct 15 EPPEPP SummaryTotal Actual and Projected EPP projectsOct 15 Projected Net Rev ReqProjected Net Rev RequirementProjected net revenue requirements for next calendar yearOct 15 Projected Gross Rev Req Projected gross revenue requirements for next calendar yearOct 15 P-1Transmission PlantProjected transmission plant for next calendar yearOct 15 P-2Exp. & Rev. CreditsProjected expenses and revenue credits for next calendar yearOct 15 P-3Trans. Network LoadProjected transmission load for next calendar yearOct 15 P-4BPF ProjectsProjected Base Plan Funded ProjectsOct 15 P-5Econ. ProjectsProjected Economic Portfolio Funded ProjectsOct 15 Transmission Formula RateTransmission Formula Rate – 2012 ATRR

13. 13 Formula Components True-Up Update  Data Included  Historical 2010 financial data Westar Energy Form 1 Kansas 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. Transmission Formula RateTransmission Formula Rate – 2012 ATRR

14. June 15, 2011 “True-Up” Update 14 Transmission Formula RateTransmission Formula Rate – 2012 ATRR

15. “True-Up” Update Generation 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). 15 Transmission Formula Rate – 2012 ATRR

16. 16 Transmission Formula Rate “True-Up” Update 2010 Projected ATRR without 2008 True-Up 2008 True-Up before removal 2010 ATRR without True-Up 2010 ATRR that included 2008 True-Up Transmission Formula Rate – 2012 ATRR

17. 17 “True-Up” Update True-Up Amounts June 15, 2011 “True-Up” Update (posted June 15, 2011) During this update, a comparison of the 2010 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. Transmission Formula Rate The True-Up Amounts with Interest will be applied to the 2012 ATRR. Transmission Formula Rate – 2012 ATRR

18. 18 Transmission Formula Rate “True-Up” Update Gross Plant Additions Comparing Gross Plant Additions: Projected vs. Actual 2010 Total Transmission Plant Additions Projected 2010 $160,279,188 Actual 2010 $212,019,352 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, 27 th & Croco – Tecumseh Hill, Circle – HEC GT, Coffeyville Tap – Dearing, etc. Transmission Formula Rate – 2012 ATRR

19. 19 Transmission Formula Rate Any Questions Transmission Formula Rate – 2012 ATRR

20. 20 Transmission Formula RateTransmission Formula Rate – 2012 ATRR