True-Up Amount

Report
TRANSMISSION FORMULA RATE ANNUAL TRUE-UP
CUSTOMER MEETING
June 24, 2014
1
Today’s Agenda
• Welcome and Introductions
• Transmission Project Status Report
• Westar TFR True-Up Discussion
• Prairie Wind TFR True-Up Discussion
• Questions
2
2
Westar Energy’s 2014
Mid-Year Transmission Project Status Report
June 24, 2014
3
2007
2008
2009
2010
2011
2012
2013
2014
4
16
4
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
5
5
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
6
6
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
7
7
• Questions?
8
8
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/MemberRelated
Postings.asp
Click “Prairie Wind Information” to find all related documents.
9
9
Westar Energy’s
Annual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2013
June 24, 2014
10
10
Today
• Quick Review of the Westar Energy
Transmission Formula
• The Results: 2013 Actual ATRR vs.
Projected 2013 ATRR
• Protocol Review
11
11
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)
12
12
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
13
13
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
14
14
The Results: Projected vs Actual ATRR for 2013
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
$
$15,914,642
$15,914,642
0
True-Up Amount **
$
521,496
(before interest)
* 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
15
15
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
[email protected]
16
16
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
17
17
Prairie Wind Transmission’s
Annual Transmission Revenue Requirement
True-Up Meeting for Rate Year 2013
June 24, 2014
18
18
Today
• Quick Review of the Prairie Wind
Transmission (PWT) Formula
• The Results: 2013 Actual ATRR vs.
Projected 2013 ATRR
• Protocol Review
19
19
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
20
20
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
21
21
The Results: Projected vs Actual ATRR for 2013
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)
($
$
PWT’s Net Rev. Requirement
$14,490,834
True-Up Amount*
101,299)
$10,081,690
0
($ 4,409,144)
($ 4,409,144)
(before interest)
* Amount to be applied to 2015 ATRR (plus interest), in the rates effective January 1, 2015
22
22
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
[email protected]
23
23
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
24
24

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