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June 22, 2010Sheila Gropp

“True-Up” Update

June 15, 2010 Posting

Formula Rate

Customer Meeting

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ProtocolsProtocolsDefinitionsDefinitions

“Rate Year” is defined as January 1 through December 31, year Rate is in effect.

“True-Up” 1st phase of developing the new Rate Year Annual Transmission Revenue

Requirement (ATRR) based on historical (actual) data (primarily Form 1 data from previous

year) Posted by June 15 each calendar year.

“Annual Update” 2nd phase – completes the update process for Rate Year ATRR uses historical data already collected during “True-Up” Phase adds in the projected data is calculated and posted by October 15 each calendar year.

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ProtocolsProtocolsTimelineTimeline

********************************************************************************************* “Rate Year”: January 1 – December 31, 2011********************************************************************************************* “True Up” Update: June 15, 2010

“True Up” Customer Meeting: June 22, 2010 <<< we are here This date is kick off for Review Period

“True Up” Information Requests Period – 75 days: August 30, 2010

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, 2010

“Annual Update” Customer Meeting: October 26, 2010

Potential Repost of Annual Update: November 30, 2010**********************************************************************************************

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ProtocolsProtocolsOASIS PostingsOASIS PostingsData RequestsData Requests

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

Submission of Data Requests to: Sheila GroppWestar Energy818 Kansas AvenueTopeka, KS 66612Sheila.A.Gropp@Westarenergy.com

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

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Key Data LocationsKey Data Locations

FERC Form 1 Data - 2009:FERC.gov

(Westar Energy Form 1)(Kansas Gas & Electric Form 1)

Formula Rate Postings:Westar Energy Oasis

http://www.oatioasis.comSelect SPP, then Westar Energy

Accounting Manual Login:Accounting Data User ID: AFSReader

Accounting Data Password: AFSReader#1

Southwest Power Pool Oasishttp://www.oatioasis.com

Select SPP, Member Postings, then Westar Energy

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Westar Energy’s Westar Energy’s Oasis SiteOasis Site

Locating SiteLocating Site

http://www.oatioasis.com/

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 Westar Energy’s Oasis SiteOasis Site

Locating Site - 2Locating Site - 2

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

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Westar Energy’s Westar Energy’s Oasis SiteOasis Site

Home PageHome Page

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Westar Energy’s Westar Energy’s Oasis SiteOasis Site

Finding DocumentsFinding Documents

The Annual 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, 2010 Update – True-Up folder.

Update Results

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Westar Energy’s Westar Energy’s Oasis SiteOasis Site

Finding Accounting ManualFinding Accounting Manual

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

Under the Transmission Formula Rate (TFR) 2011 Rates Folder, is the sub-folder –

“Accounting Information as of 12/31/2009”

Select this folder to see available files.

Under the Accounting Information as of 12/31/2009 Folder are several files.

For the Accounting Manual, click on:

“Accounting Manual as of 12/31/2009”

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Southwest Power PoolSouthwest Power PoolOASIS PostingOASIS Posting

at Member Postings Linkat Member Postings Link

SPP OASIS Site

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Formula InputsFormula Inputs

Data and the Update

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Formula InputsFormula InputsIndex of Template Pages Index 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 Formula Components 20092009

True-up UpdateTrue-up Update

Data Included Historical 2009 financial data

Westar Energy Form 1Kansas Gas & Electric Form 1

FERC Approved Incentive Plant – Actual SPP Projects - Actual

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

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Formula ComponentsFormula Components20092009

True-up UpdateTrue-up Update

“True Up” Update Results – 1st phase – 2011 Rates

2011 Rate is not complete until the October Update which will apply the Projected data

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Base Plan Funded Projects Actual

A-9 – Actual BPF Plant

Gross Plant is the accumulation of plant placed in-service through the end of 2009.

$7,694,924 includes plant in-service from 2006-2009.

Accm. Deprec. is the total accumulated depreciation on these plant additions based on in-service dates.

Formula ComponentsFormula Components20092009

True-up UpdateTrue-up Update

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Incentive Projects Actual

A-11 – Incentive Plant

Formula ComponentsFormula Components20092009

True-up UpdateTrue-up Update

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Formula ComponentsFormula Components20092009

True-up UpdateTrue-up Update

TU (True-Up)

2009 Projected vs. 2009 Actual

Difference plus interest will become a true-up for the 2011 Rates

In October 2010, the Annual TFR Update will complete the 2011 Rate Calculation.

The Rate established for 2009 was derived from the 2007 actual expenses and plant plus the projected expenses and plant additions.

The percentage of change in transmission plant projected for 2009 vs. 2007 actual transmission plant adjusts the 2007 Actual expenses to create the

projected 2009 expenses by that same percentage change.

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QUESTIONS?QUESTIONS?~~

Future FilingFuture Filing~~

Mark your CalendarsMark your CalendarsAnnual UpdateAnnual Update

Customer MeetingCustomer MeetingOctober 26, 2010October 26, 2010