Westar Energy Transmission Operations:An Update on Regional and LocalTransmission ActivityJune 22, 2010

Presented to Attendees of Westars Transmission Formula Rate Meeting

*Transmission Formula Rate True-Up MeetingTodays AgendaTransmission Formula RateThe 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

*The Many Facets of TransmissionThe Current Hot Topics at the Southwest Power PoolFull Speed Ahead: Westars Transmission Construction Status

*The Southwest Power Pool (SPP)Hot Topic #1: Making the System Study Process More Efficient

New transmission service requestsNew delivery pointsAttachment AQ: The New Delivery Point Addition ProceduresNew generation interconnectionsAttachment V: The New Generation Interconnection Procedures (GIP)Which comes first, the wind or the wires?

*Proposed Wind Projects in SPP

*The Southwest Power Pool (SPP)Hot Topic #2: Cost AllocationWho 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, Economicoh my!

*The Southwest Power Pool (SPP)Hot Topic #3: 765 kVTruth or Myth?Prairie Wind TransmissionJoint Venture between Westar and American Electric Power (AEP)First project of focus has been: Wichita-Medicine Lodge 765 kVSPP 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 realityIntegrated Transmission Plan (ITP) will be issued January 2011Would be operated at 345 kV for indefinite period

*Proposed 765 kV Projects

*Construction Status ReportWestar is building more new transmission than everTransmission service, reliability, generator interconnectionsCost recovery via Transmission Formula RateExample: $200+ million vs. $10 million in earlier yearsTransCanada, TransCanada, TransCanadaOther major projects:Wichita-Reno 345 kVReno-Summit 345 kVRose Hill-Sooner 345 kV

Numerous other transmission projects..

*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

*345 kV Projects: Wichita-Reno-SummitStage 1: Gordon Evans Energy Center to Reno SubEnergized December 2009

*345 kV Projects: Wichita-Reno-SummitStage 2: Reno Sub to Summit SubScheduled to be completed September 2010

*345 kV Projects: Rose Hill-SoonerRose Hill Sub to OGEs Sooner SubWestars portion is scheduled to be completed mid-2012

*Other Projects: North-Central KansasRebuilding Kelly-S. Seneca 115 kV and building a new 115 kV line from Knob Hill Sub to the State borderBoth scheduled to be completed by Dec 2010

*Other Projects: Northeast KansasBuilding a new 115 kV line between Stranger Creek and Thornton SubsScheduled to be completed by Dec 2010

*Other Projects: South-Central KansasRebuilding the 69 kV lines from Gill-Peck, Weaver-Rose Hill Junction, Timber Junction-WinfieldAll scheduled to be completed in 2010Building the new 138 kV line from Sumner Co. to Timber Junction

*Other Projects: Southeast KansasRebuilding the 69 kV line from Green to Athens SubsScheduled to be completed Spring 2011

*The New Delivery Point Addition/Modification ProcessDelivery Point Addition Task Force createdDid so pre-emptively to assure customer voice representedWorked diligently to make process more efficient and fairDepicted in Attachment AQ of the SPP TariffWent into effect May 1, 2010Much more formal, with SPP involvedApplies 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 TOAdd orModify DeliveryPoint(s)Is TC an ExistingSPPCustomer?GFAConversion/Rollover?New TransmissionService RequestYNYNew TransmissionService RequestAggregate StudyProcessPTP orNITSRequest?New or UpdatedNITSANew or UpdatedPTPConstructionRequired?New or UpdatedInterconnectionDelivery PointNetworkStudy(DPNS)DP LetterAgreementNYSPPPreliminaryReview byTOConstructionRequired?Load ConnectionStudyBy TONYTOExisting TariffNNITSPTPPreliminaryReview by SPP

SignificantImpactto System?YNHost TO ReviewDeliveryPointAdditionProcess

*Overview of the Westar-Customer ProcessCustomer submits request to WR and SPP.All related WR departments are notified.Appropriate engineering group performs preliminary study and notifies SPP.If necessary, a Load Connection Study Agreement is issued to Customer.Once executed, WR performs LCS and issues LCS Report within 60 days of LCS Agreements execution.

Once SPP is satisfied with all necessary studies, a Delivery Point Agreement is issued to the Customer.Once executed, WR and the Customer work closely together to determine milestones and the project scope.If applicable, Regulatory assures FERC is notified and that all related agreements are updated.If applicable, Customer is notified of related Wholesale Distribution Charge.WR and Customer work together to assure timely completion.