1 transmission formula rate annual true-up customer meeting june 24, 2014
TRANSCRIPT
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TRANSMISSION FORMULA RATE ANNUAL TRUE-UPCUSTOMER MEETING
June 24, 2014
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Today’s Agenda
• Welcome and Introductions
• Transmission Project Status Report
• Westar TFR True-Up Discussion
• Prairie Wind TFR True-Up Discussion
• Questions
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Westar Energy’s 2014Mid-Year Transmission Project Status Report
June 24, 2014
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20072008200920102011201220132014
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345 kV Projects: Wichita-Thistle-Woodward
Prairie Wind Transmission’s Project
Westar’s Wichita Sub to ITC’s Thistle Sub to OGE’s Woodward Sub
In-Service June, 2014
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345 kV Projects: Summit–Elm Creek
Westar’s Summit Sub to ITC’s Elm Creek Sub
Currently scheduled to be completed by the end of 2016
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345 kV Projects: Bluestem Substation
A new 345-115 kV substation and new 115 kV line
Currently scheduled to be completed by the summer of 2017
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• Questions?
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Useful Resources
For the Westar TFR:
http://www.oatioasis.com/WR/index.html
All related documents are in the folders on the left side of the screen.
For the Prairie Wind TFR:
http://sppoasis.spp.org/documents/SWPP/MemberRelatedPostings/MemberRelatedPostings.asp
Click “Prairie Wind Information” to find all related documents.
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Westar Energy’sAnnual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2013
June 24, 2014
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Today
• Quick Review of the Westar Energy Transmission Formula
• The Results: 2013 Actual ATRR vs. Projected 2013 ATRR
• Protocol Review
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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)
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A Refresher of the Timing (Example: 2015 Rate Year)
June 2014: True-up Amount from prior Rate Year (2013) is posted
October 2014: Projected ATRR for the next Rate Year (2015) is posted
Next Rate Year (2015) includes the 2013 True-up and 2015 Projected ATRR
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Quick Review: The Fall 2013 ATRR Re-Posting
• Westar re-posted the 2014 ATRR last fall to make adjustments to the “Revenue Credits” component• Originally included revenue from NITS customers who are not
connected to Westar’s system for Base Plan Funded (BPF) facilities
• Should have only included Point-to-Point revenues• Result: Understatement of BPF and Zonal ATRR
• We recalculated with the data available at the time• Adjustments related to the recalculation for the 2011 and 2012
Rate Years were included in the 2014 ATRR• Adjustments related to the recalculation for the 2008-2010 rate
years are in the True-up for 2013, so will be applied to the 2015 ATRR
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The Results: Projected vs Actual ATRR for 2013
* 2013 Projected Net Revenue Requirement without the 2011 True-Up** Amount to be applied to 2015 ATRR (plus interest), in the rates effective January 1, 2015
Projected Actual Difference
Westar’s Gross Rev. Requirement $230,234,224 $208,750,808 ($21,483,415)
Revenue Credits ($ 22,198,015) ($16,107,745) $ 6,397,295
Westar’s Net Rev. Requirement $208,036,209 * $192,643,063 ($15,393,144)
Adjustment to 2008-2010 ATRR $ 0 $15,914,642 $15,914,642
True-Up Amount ** (before interest)
$ 521,496
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A Review of Westar Formula Protocols
• Today: June 24, 2014
• Data requests regarding this true-up calculation may be submitted until September 8, 2014– Westar will make its best effort to respond within 10 business
days of the receipt of such requests
• Send comments or data requests via e-mail to:– Donna Lehman at [email protected]– Please cc: [email protected] and
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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.
• SAVE THE DATE FOR THE 2015 ANNUAL WESTAR ATRR MEETING: October 28, 2014
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Prairie Wind Transmission’sAnnual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2013
June 24, 2014
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Today
• Quick Review of the Prairie Wind Transmission (PWT) Formula
• The Results: 2013 Actual ATRR vs. Projected 2013 ATRR
• Protocol Review
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Quick Review: The PWT Transmission Formula (True-Up)
• Gross Revenue Requirement (GRR) includes:• Actual Transmission Plant• Actual Transmission O&M• Actual Transmission Depreciation Expense• Taxes• Return• Actual CWIP is included as an adjustment to Rate Base
• Net Revenue Requirement adjusts the GRR for:• Revenue Credits received for Point-to-Point Transmission
Service• True-up adjustment
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A Refresher of the Timing (Example: 2015 Rate Year)
June 2014: True-up Amount from prior Rate Year (2013) is posted
September 2014: Projected ATRR for the next Rate Year (2015) is posted
Next Rate Year (2015) includes the 2013 True-up and 2015 Projected ATRR
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The Results: Projected vs Actual ATRR for 2013
* Amount to be applied to 2015 ATRR (plus interest), in the rates effective January 1, 2015
Projected Actual Difference
PWT’s Gross Rev. Requirement $14,647,675 $11,891,506 ($ 2,756,169)
Revenue Credits ($ 55,542) ($ 1,708,517) ($ 1,652,975)
True-Up Adjustment ($ 101,299) ($ 101,299) $ 0
PWT’s Net Rev. Requirement $14,490,834 $10,081,690 ($ 4,409,144)
True-Up Amount* (before interest)
($ 4,409,144)
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A Review of PWT Formula Protocols
• Today: June 24, 2014
• Data requests regarding this true-up calculation may be submitted until September 28, 2014– Westar will make its best effort to respond within 15 business
days of the receipt of such requests
• Send comments or data requests via e-mail to:– Donna Lehman at [email protected]– Please cc: [email protected] and
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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 2015 ANNUAL PRAIRIE WIND ATRR MEETING: September 23, 2014