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Westar Energy’s 2012Annual Transmission Revenue Requirement
Meeting
October 25, 2011
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Today
• Status Report: Transmission Projects
• Quick Review of the Past
• The Results: 2012 ATRR
• What Do These Results Mean to Our Customers?
• Protocol Review
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20072008200920102011201220132014
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Transmission Investment
Projected Projected
Mil
lion
s $
Projected
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013
70
150 160
200 195 195180
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Future Projects in the Southwest Power Pool
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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
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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)
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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
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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
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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 [email protected]– Please cc: [email protected]
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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
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