Westar Energy Transmission Operations:An Update on Regional and Local

Transmission Activity

Westar Energy Transmission Operations:An Update on Regional and Local

Transmission Activity

June 22, 2010

Presented to Attendees of Westar’s Transmission Formula Rate Meeting

2

Transmission Formula Rate True-Up MeetingTransmission Formula Rate True-Up Meeting

Today’s AgendaTransmission Formula Rate

The Protocols of the Formula: How They Apply to YouA Discussion of the June 15 True-Up Calculation

An Update on Regional and Local Transmission Activity

Attachment AQ: New Delivery Point Addition Procedures

Today’s AgendaTransmission Formula Rate

The Protocols of the Formula: How They Apply to YouA Discussion of the June 15 True-Up Calculation

An Update on Regional and Local Transmission Activity

Attachment AQ: New Delivery Point Addition Procedures

3

The Many Facets of Transmission…The Many Facets of Transmission…

The Current “Hot Topics” at the Southwest Power Pool

Full Speed Ahead: Westar’s Transmission Construction Status

The Current “Hot Topics” at the Southwest Power Pool

Full Speed Ahead: Westar’s Transmission Construction Status

4

The Southwest Power Pool (SPP)The Southwest Power Pool (SPP)

Hot Topic #1: Making the System Study Process More Efficient

New transmission service requests New delivery points

Attachment AQ: The New Delivery Point Addition Procedures New generation interconnections

Attachment V: The New Generation Interconnection Procedures (GIP)

Which comes first, the wind or the wires?

Hot Topic #1: Making the System Study Process More Efficient

New transmission service requests New delivery points

Attachment AQ: The New Delivery Point Addition Procedures New generation interconnections

Attachment V: The New Generation Interconnection Procedures (GIP)

Which comes first, the wind or the wires?

5

Proposed Wind Projects in SPPProposed Wind Projects in SPP

6

The Southwest Power Pool (SPP)The Southwest Power Pool (SPP)

Hot Topic #2: Cost Allocation…Who Pays for What?

Highway/By-way RateFERC just approved on June 17, effective June 19,

2010Focuses on SPP Region as a wholeAllocation according to voltage

• > or = 300 kV is spread across entire region• > 100 kV < 300 kV is 1/3 region, 2/3 zone• < or = 100 kV is 100% to the zone

Zonal, Regional, Base Plan Funded, Economic…oh my!

Hot Topic #2: Cost Allocation…Who Pays for What?

Highway/By-way RateFERC just approved on June 17, effective June 19,

2010Focuses on SPP Region as a wholeAllocation according to voltage

• > or = 300 kV is spread across entire region• > 100 kV < 300 kV is 1/3 region, 2/3 zone• < or = 100 kV is 100% to the zone

Zonal, Regional, Base Plan Funded, Economic…oh my!

7

The Southwest Power Pool (SPP)The Southwest Power Pool (SPP)

Hot Topic #3: 765 kV…Truth or Myth?Prairie Wind Transmission

Joint Venture between Westar and American Electric Power (AEP)

First project of focus has been: Wichita-Medicine Lodge 765 kV

SPP has approved double-circuit 345 kV so farPWT is working with ITC to revise KCC settlement

agreement accordingly for 345 kV765 kV can still become a reality

• Integrated Transmission Plan (ITP) will be issued January 2011

• Would be operated at 345 kV for indefinite period

Hot Topic #3: 765 kV…Truth or Myth?Prairie Wind Transmission

Joint Venture between Westar and American Electric Power (AEP)

First project of focus has been: Wichita-Medicine Lodge 765 kV

SPP has approved double-circuit 345 kV so farPWT is working with ITC to revise KCC settlement

agreement accordingly for 345 kV765 kV can still become a reality

• Integrated Transmission Plan (ITP) will be issued January 2011

• Would be operated at 345 kV for indefinite period

8

Proposed 765 kV ProjectsProposed 765 kV Projects

9

Construction Status ReportConstruction Status Report

Westar is building more new transmission than ever Transmission service, reliability, generator interconnections Cost recovery via Transmission Formula Rate Example: $200+ million vs. $10 million in earlier years

TransCanada, TransCanada, TransCanada

Other major projects: Wichita-Reno 345 kV Reno-Summit 345 kV Rose Hill-Sooner 345 kV

Numerous other transmission projects…..

Westar is building more new transmission than ever Transmission service, reliability, generator interconnections Cost recovery via Transmission Formula Rate Example: $200+ million vs. $10 million in earlier years

TransCanada, TransCanada, TransCanada

Other major projects: Wichita-Reno 345 kV Reno-Summit 345 kV Rose Hill-Sooner 345 kV

Numerous other transmission projects…..

10

TransCanada is Coming!TransCanada is Coming!• TransCanada will have six pumping stations in Kansas.

• Five of those stations are in the Westar Energy service area.

• Each station has at least two and up to five 6500 hp motors.

• Estimated peak load at each site will be 17-25 MW

•All locations expected to be on-line by the end of 2013

11

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345 kV Projects: Wichita-Reno-Summit345 kV Projects: Wichita-Reno-Summit

Stage 1: Gordon

Evans Energy Center to Reno Sub

Energized December

2009

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345 kV Projects: Wichita-Reno-Summit345 kV Projects: Wichita-Reno-Summit

Stage 2: Reno Sub to Summit Sub

Scheduled to be completed

September 2010

13

345 kV Projects: Rose Hill-Sooner345 kV Projects: Rose Hill-Sooner

Rose Hill Sub to OGE’s

Sooner Sub

Westar’s portion is

scheduled to be completed

mid-2012

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MARSHALL

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Other Projects: North-Central KansasOther Projects: North-Central Kansas

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building a new 115 kV

line from Knob Hill Sub to the

State border

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Other Projects: South-Central KansasOther Projects: South-Central KansasRebuilding the 69

kV lines from Gill-Peck,

Weaver-Rose Hill Junction, Timber Junction-Winfield

All scheduled to be

completed in 2010

Building the new 138 kV line

from Sumner Co. to Timber

Junction

17

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T23S R16E

T24S R16E

T24S R17E

T23S R17ET23S R18E

T24S R18E

T24S R15E

T23S R15E

T25S R17ET25S R16E

T22S R16E T22S R17E

T25S R18E

T22S R18E

T25S R15E

T22S R15E

WOODSONALLEN

COFFEYANDERSON

Other Projects: Southeast KansasOther Projects: Southeast Kansas

Rebuilding the 69 kV line from Green to

Athens Subs

Scheduled to be completed Spring 2011

18

The New Delivery Point Addition/Modification ProcessThe New Delivery Point Addition/Modification Process

Delivery Point Addition Task Force createdDid so pre-emptively to assure customer voice representedWorked diligently to make process more efficient and fair

Depicted in Attachment AQ of the SPP Tariff

Went into effect May 1, 2010

Much more formal, with SPP involved

Applies to all wholesale entities wanting to connect to Transmission Owners’ facilitiesKEPCo, KPP, Westar Genco

Delivery Point Addition Task Force createdDid so pre-emptively to assure customer voice representedWorked diligently to make process more efficient and fair

Depicted in Attachment AQ of the SPP Tariff

Went into effect May 1, 2010

Much more formal, with SPP involved

Applies to all wholesale entities wanting to connect to Transmission Owners’ facilitiesKEPCo, KPP, Westar Genco

Customer sends Request for Change in Local Delivery

Facilities to SPP and Host TO

Add orModify DeliveryPoint(s)

Is TC an Existing

SPPCustomer?

GFAConversion/

Rollover?

New TransmissionService Request

Y

N Y

New TransmissionService Request

Aggregate StudyProcess

PTP orNITS

Request?

New or UpdatedNITSA

New or Updated

PTP

ConstructionRequired?

New or Updated

Interconnection

Delivery PointNetworkStudy

(DPNS)

DP LetterAgreement

N

Y

SPP

PreliminaryReview by

TO

ConstructionRequired?

Load ConnectionStudyBy TO

N

Y

TO

Existing Tariff

N

NITS

PTP

PreliminaryReview by SPP

SignificantImpact

to System?

Y

N

Host TO Review

DeliveryPointAdditionProcess

20

Overview of the Westar-Customer Process…Overview of the Westar-Customer Process…

1. Customer submits request to WR and SPP.

2. All related WR departments are notified.

3. Appropriate engineering group performs preliminary study and notifies SPP.

4. If necessary, a Load Connection Study Agreement is issued to Customer.

5. Once executed, WR performs LCS and issues LCS Report within 60 days of LCS Agreement’s execution.

1. Customer submits request to WR and SPP.

2. All related WR departments are notified.

3. Appropriate engineering group performs preliminary study and notifies SPP.

4. If necessary, a Load Connection Study Agreement is issued to Customer.

5. Once executed, WR performs LCS and issues LCS Report within 60 days of LCS Agreement’s execution.

6. Once SPP is satisfied with all necessary studies, a Delivery Point Agreement is issued to the Customer.

7. Once executed, WR and the Customer work closely together to determine milestones and the project scope.

8. If applicable, Regulatory assures FERC is notified and that all related agreements are updated.

9. If applicable, Customer is notified of related Wholesale Distribution Charge.

10. WR and Customer work together to assure timely completion.

6. Once SPP is satisfied with all necessary studies, a Delivery Point Agreement is issued to the Customer.

7. Once executed, WR and the Customer work closely together to determine milestones and the project scope.

8. If applicable, Regulatory assures FERC is notified and that all related agreements are updated.

9. If applicable, Customer is notified of related Wholesale Distribution Charge.

10. WR and Customer work together to assure timely completion.