Embed Size (px)
Citation preview
1
Westar Energy’s 2013Annual Transmission Revenue Requirement
Meeting
October 30, 2012
2
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
3
20072008200920102011201220132014
4
Transmission Investment
Projected Projected
Mil
lion
s $
Projected
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 2014
70
150 160
200165
145
260
210
5
Future Projects in the Southwest Power Pool
6
Quick Review: The Formula
• Gross Revenue Requirement (GRR) includes:• Projected Transmission Plant In-Service• Projected Transmission O&M• Projected Transmission Depreciation Expense• Taxes• Return
• Net Revenue Requirement adjusts the GRR for:• 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
7
Quick Review: The Past
• 2009 was the first ATRR that included the forward-looking, revised formula
• History of true-up adjustments:• -$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 FERC-approved TFR
8
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
9
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)
$ 865,445
Customer’s 2012 Load Ratio Share .00475
2013 Westar Zonal Rev. Req., plus SPP Schedule 11* $183,038,901
Customer’s Estimated Annual Transmission Charge (before Ancillary Services and Fees)
$ 869,434
Estimated Difference + .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
10
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
• SAVE THE DATE FOR THE 2012 TRUE-UP MEETING: June 25, 2013
11
Meter Cost Recovery Policy
• Purpose: To assure fair, consistent treatment of all Transmission Customers for meter-related costs
• Key Aspects: – Outlines recoverable capital expenses:
• 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
12
Questions?
