Transcript Slide 1

Westar Energy’s 2013
Annual Transmission Revenue Requirement
Meeting
October 30, 2012
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Today
•
Status Report: Transmission Projects
•
Quick Review of the Past
•
The Results: 2013 ATRR
•
What Do These Results Mean to Our Customers?
•
Protocol Review
•
Meter Cost Recovery Policy
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2007
2008
2009
2010
2011
2012
2013
2014
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Transmission Investment
350
260
300
Millions $
250
210
200
200
150
160
2008
2009
165
145
150
100
70
50
0
2007
2010
2011
2012
Projected
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2013
2014
Projected
Projected
Future
Projects in
the
Southwest
Power Pool
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Quick Review: The Formula
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Gross Revenue Requirement (GRR) includes:
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•
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Projected Transmission Plant In-Service
Projected Transmission O&M
Projected Transmission Depreciation Expense
Taxes
Return
Net Revenue Requirement adjusts the GRR for:
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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
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2009 was the first ATRR that included the forwardlooking, revised formula
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History of true-up adjustments:
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-$17.8 M was applied in the 2011 ATRR, for 2009 business
$4.5 M was applied in the 2012 ATRR, for 2010 business
-$9.8 M will be applied in the 2013 ATRR, for 2011 business
Key aspect of true-up amounts: O&M
•
•
The TFR calculates a projected O&M based on the
percentage increase in Transmission Plant times the actual
O&M from the previous actual year
This function of projecting O&M is part of the FERCapproved TFR
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The Results: ATRR for 2013
Westar’s Gross Rev. Requirement
$230,234,224
Revenue Credits
($ 22,198,015)
True-Up from 2011
($
9,786,991)
Westar’s Net Rev. Requirement
$198,249,218
SPP’s BPF Rev. Requirement*
($ 64,795,034)
SPP Zonal Rev. Requirement**
$133,454,184
* Funds collected under Schedule 11
** Resulting rates go into effect with January 1, 2013, business
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The Results: What Does this Mean to You?
Example of a Customer’s Estimated Transmission Costs, 2012 vs. 2013
Customer’s 2011 Load Ratio Share
.00475
2012 Westar Zonal Rev. Req., plus SPP Schedule 11*
$182,198,978
Customer’s Annual Transmission Service Charge (before
Ancillary Services and Fees)
$
Customer’s 2012 Load Ratio Share
865,445
.00475
2013 Westar Zonal Rev. Req., plus SPP Schedule 11*
Customer’s Estimated Annual Transmission Charge
(before Ancillary Services and Fees)
Estimated Difference
$183,038,901
$
869,434
+ .46%
* 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 30, 2012
• Comments and questions are preferred by November 20, 2012, so
we can review and revise the ATRR if necessary
• If necessary, revised ATRR will be posted by November 30, 2012
• Send comments or questions via e-mail to:
– Sheila Gropp at [email protected]
– Please cc: [email protected] and
[email protected]
• SAVE THE DATE FOR THE 2012 TRUE-UP MEETING:
June 25, 2013
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Meter Cost Recovery Policy
• Purpose: To assure fair, consistent treatment of all
Transmission Customers for meter-related costs
• Key Aspects:
– Outlines recoverable capital expenses:
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New meter points
Failed equipment
Upgrades (requested by TC)
Back-up meter points
– Outlines recoverable O&M expenses
• Meter service fee
• TBD and filed with FERC before charged
• Effective Date: September 1, 2012
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Questions?
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