1. 1 TRANSMISSION FORMULA RATE ANNUAL TRUE-UP CUSTOMER MEETING June 24, 2014

2. 2 Today’s Agenda Welcome and Introductions Transmission Project Status Report Westar TFR True-Up Discussion Prairie Wind TFR True-Up Discussion Questions 2

3. 3 Westar Energy’s 2014 Mid-Year Transmission Project Status Report June 24, 2014

4. 4 2007 2008 2009 2010 2011 2012 2013 2014 16 4

5. 5 345 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

6. 6 345 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

7. 7 345 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

8. 8 Questions? 8

9. 9 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

10. 10 Westar Energy’s Annual Transmission Revenue Requirement True-Up Meeting for Rate Year 2013 Westar Energy’s Annual Transmission Revenue Requirement True-Up Meeting for Rate Year 2013 June 24, 2014 10

11. 11 Today Quick Review of the Westar Energy Transmission Formula The Results: 2013 Actual ATRR vs. Projected 2013 ATRR Protocol Review 11

12. 12 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

13. 13 A Refresher of the Timing (Example: 2015 Rate Year) 13 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

14. 14 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

15. 15 The Results: Projected vs Actual ATRR for 2013 * 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 ProjectedActualDifference 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($15,393,144) Adjustment to 2008-2010 ATRR$ 0$15,914,642 True-Up Amount ** (before interest) $ 521,496 15

16. 16 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 donna.lehman@westarenergy.comdonna.lehman@westarenergy.com –Please cc: gelene.tiller@westarenergy.com and suzanne.lane@westarenergy.comgelene.tiller@westarenergy.com 16

17. 17 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

18. 18 Prairie Wind Transmission’s Annual Transmission Revenue Requirement True-Up Meeting for Rate Year 2013 Prairie Wind Transmission’s Annual Transmission Revenue Requirement True-Up Meeting for Rate Year 2013 June 24, 2014 18

19. 19 Today Quick Review of the Prairie Wind Transmission (PWT) Formula The Results: 2013 Actual ATRR vs. Projected 2013 ATRR Protocol Review 19

20. 20 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

21. 21 A Refresher of the Timing (Example: 2015 Rate Year) 21 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

22. 22 The Results: Projected vs Actual ATRR for 2013 * Amount to be applied to 2015 ATRR (plus interest), in the rates effective January 1, 2015 ProjectedActualDifference 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) $ 0 PWT’s Net Rev. Requirement $14,490,834 $10,081,690($ 4,409,144) True-Up Amount* (before interest) ($ 4,409,144) 22

23. 23 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 donna.lehman@westarenergy.comdonna.lehman@westarenergy.com –Please cc: gelene.tiller@westarenergy.com and suzanne.lane@westarenergy.comgelene.tiller@westarenergy.com 23

24. 24 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