1. 1 Westar Energy’s 2012 Annual Transmission Revenue Requirement Meeting October 25, 2011

2. 2 Today Status Report: Transmission Projects Quick Review of the Past The Results: 2012 ATRR What Do These Results Mean to Our Customers? Protocol Review

3. 3 2007 2008 2009 2010 2011 2012 2013 2014

4. 4 Transmission Investment Projected Millions $ Projected

5. 5 Future Projects in the Southwest Power Pool

6. 6 Quick Review: The Formula Gross Revenue Requirement (GRR) includes: Projected Transmission Plant Projected Transmission O&M Projected Transmission Depreciation Expense Taxes Return Net Revenue Requirement adjusts the GRR for: Revenue Credits received for Point-to-Point Transmission Service “Rent” received (i.e. pole attachments) True-Up for prior year’s difference between actual and projected, including interest

7. 7 Quick Review: The Past 2009 was the first ATRR that included the forward- looking, revised formula The first substantial true-up adjustment of -$17.8 M was applied in the 2011 ATRR, for 2009 business: Actual O&M expenditures in 2009 were lower than projected Actual revenue credits received for PTP service in 2009 were higher than projected Therefore, the net ATRR increase from 2010 to 2011 was 12% (it would have been 25% without the -$17.8 M adjustment)

8. 8 The Results: ATRR for 2012 Westar’s Gross Rev. Requirement $203,102,936 Revenue Credits($ 21,496,752) True-Up from 2010 $ 4,453,094 Westar’s Net Rev. Requirement $186,059,278 SPP’s BPF Rev. Requirement*($ 38,125,719) Westar’s Zonal Rev. Requirement** $147,933,559 * Funds collected under Schedule 11 ** Resulting rates go into effect with January 1, 2012, business

9. 9 The Results: What Does this Mean to You? Example of a City’s Estimated Transmission Costs, 2011 vs. 2012 City’s 2010 Load Ratio Share.00475 2011 Westar Zonal Rev. Req., plus SPP Schedule 11*$143,996,748 City’s Annual Transmission Service Charge (before Ancillary Services) $ 683,787 City’s 2011 Load Ratio Share.00475 2012 Westar Zonal Rev. Req., plus SPP Schedule 11*$169,907,954 City’s Estimated Annual Transmission Charge (before Ancillary Services) $ 806,830 Estimated Difference+ 18.0% * Includes Westar’s respective Zonal ATRR plus the most recent information posted in Attachment H of SPP’s OATT; amounts in Attachment H vary throughout the year, depending on activities of other TOs in SPP

10. 10 Formula Protocols: Annual Update Today: October 25, 2011 Comments are accepted through November 30, 2011 If necessary, revised ATRR will be posted on November 30, 2011 Send comments or questions via e-mail to: –Sheila Gropp at sheila.gropp@westarenergy.comsheila.gropp@westarenergy.com –Please cc: leslie.wines@westarenergy.comleslie.wines@westarenergy.com

11. 11 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 2011 TRUE-UP MEETING: June 26, 2012