Westar Energy Transmission Operations: An Update on Regional and Local Transmission Activity June 22, 2010 Presented to Attendees of Westars Transmission Formula Rate Meeting

2 Transmission Formula Rate True-Up Meeting Todays Agenda FTransmission Formula Rate l The Protocols of the Formula: How They Apply to You l A Discussion of the June 15 True-Up Calculation FAn Update on Regional and Local Transmission Activity FAttachment AQ: New Delivery Point Addition Procedures Todays Agenda FTransmission Formula Rate l The Protocols of the Formula: How They Apply to You l A Discussion of the June 15 True-Up Calculation FAn Update on Regional and Local Transmission Activity FAttachment AQ: New Delivery Point Addition Procedures

3 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) Hot Topic #1: Making the System Study Process More Efficient F New transmission service requests F New delivery points l Attachment AQ: The New Delivery Point Addition Procedures F New generation interconnections l Attachment V: The New Generation Interconnection Procedures (GIP) l Which comes first, the wind or the wires? Hot Topic #1: Making the System Study Process More Efficient F New transmission service requests F New delivery points l Attachment AQ: The New Delivery Point Addition Procedures F New generation interconnections l Attachment V: The New Generation Interconnection Procedures (GIP) l Which comes first, the wind or the wires?

5 Proposed Wind Projects in SPP

6 The Southwest Power Pool (SPP) Hot Topic #2: Cost Allocation … Who Pays for What? F Highway/By-way Rate l FERC just approved on June 17, effective June 19, 2010 l Focuses on SPP Region as a whole l Allocation 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 F Zonal, Regional, Base Plan Funded, Economic … oh my! Hot Topic #2: Cost Allocation … Who Pays for What? F Highway/By-way Rate l FERC just approved on June 17, effective June 19, 2010 l Focuses on SPP Region as a whole l Allocation 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 F Zonal, Regional, Base Plan Funded, Economic … oh my!

7 The Southwest Power Pool (SPP) Hot Topic #3: 765 kV … Truth or Myth? F Prairie Wind Transmission l Joint Venture between Westar and American Electric Power (AEP) l First project of focus has been: Wichita-Medicine Lodge 765 kV F SPP has approved double-circuit 345 kV so far l PWT is working with ITC to revise KCC settlement agreement accordingly for 345 kV l 765 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? F Prairie Wind Transmission l Joint Venture between Westar and American Electric Power (AEP) l First project of focus has been: Wichita-Medicine Lodge 765 kV F SPP has approved double-circuit 345 kV so far l PWT is working with ITC to revise KCC settlement agreement accordingly for 345 kV l 765 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 Projects

9 Construction Status Report Westar is building more new transmission than ever F Transmission service, reliability, generator interconnections F Cost recovery via Transmission Formula Rate F Example: $200+ million vs. $10 million in earlier years TransCanada, TransCanada, TransCanada Other major projects: F Wichita-Reno 345 kV F Reno-Summit 345 kV F Rose Hill-Sooner 345 kV Numerous other transmission projects ….. Westar is building more new transmission than ever F Transmission service, reliability, generator interconnections F Cost recovery via Transmission Formula Rate F Example: $200+ million vs. $10 million in earlier years TransCanada, TransCanada, TransCanada Other major projects: F Wichita-Reno 345 kV F Reno-Summit 345 kV F Rose Hill-Sooner 345 kV Numerous other transmission projects …..

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

kV Projects: Wichita-Reno-Summit Stage 1: Gordon Evans Energy Center to Reno Sub Energized December 2009

kV Projects: Wichita-Reno-Summit Stage 2: Reno Sub to Summit Sub Scheduled to be completed September 2010

kV Projects: Rose Hill-Sooner Rose Hill Sub to OGEs Sooner Sub Westars portion is scheduled to be completed mid-2012

14 Other Projects: North-Central Kansas Rebuilding Kelly-S. Seneca 115 kV and building a new 115 kV line from Knob Hill Sub to the State border Both scheduled to be completed by Dec 2010

15 Other Projects: Northeast Kansas Building a new 115 kV line between Stranger Creek and Thornton Subs Scheduled to be completed by Dec 2010

16 Other Projects: South-Central Kansas Rebuilding 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 Other 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 Process Delivery Point Addition Task Force created FDid so pre-emptively to assure customer voice represented FWorked 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 facilities FKEPCo, KPP, Westar Genco Delivery Point Addition Task Force created FDid so pre-emptively to assure customer voice represented FWorked 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 facilities FKEPCo, KPP, Westar Genco

Customer sends Request for Change in Local Delivery Facilities to SPP and Host TO Add or Modify Delivery Point(s) Is TC an Existing SPP Customer? GFA Conversion/ Rollover? New Transmission Service Request Y NY New Transmission Service Request Aggregate Study Process PTP or NITS Request? New or Updated NITSA New or Updated PTP Construction Required? New or Updated Interconnection Delivery Point Network Study (DPNS) DP Letter Agreement N Y SPP Preliminary Review by TO Construction Required? Load Connection Study By TO N Y TO Existing Tariff N NITS PTP Preliminary Review by SPP Significant Impact to System? Y N Host TO Review Delivery Point Addition Process

20 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 Agreements 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 Agreements 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.