1 / 22

Transmission Formula Rate

Transmission Formula Rate. What is a Formula Rate?. A standard Rate is a fixed charge set in a regulatory process through a rate case The fixed rates do not change unless another rate case is filed A formula rate is a fixed method for calculating a rate based upon set inputs

yaholo
Download Presentation

Transmission Formula Rate

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Transmission Formula Rate

  2. What is a Formula Rate? • A standard Rate is a fixed charge set in a regulatory process through a rate case • The fixed rates do not change unless another rate case is filed • A formula rate is a fixed method for calculating a rate based upon set inputs • The charges to customer update annually • Data input comes from public sources (Form 1) • Recalculation of the charges is done pursuant to a set of protocols

  3. What makes upa Rate? • Revenue Requirement divided by a set of billing determinants. • Revenue Requirements are determined over a fixed period of time (Test Year) • A Test Year can be either historic or projected • The billing determinants should be over the same period of time as the Test Year.

  4. Revenue Requirements The sum of the following: • Return on Equity (Rate Base * Rate of Return) • O&M • Depreciation Expense • Taxes other than income • Income Taxes

  5. Westar’s Formula Rate • Revenue Requirements used for billing is for a projected Test Year • Changes in costs are projected in all five components of the formula • A “True-up” calculation is done each year to compare the Actual Rev. Req. to the projected • Any refund or surcharge is an adjustment to the Rev. Req. for the next Projected Period • Minimizes work by not having to do annual refunds or surcharges

  6. Changes to the Formula • Consolidated Capital • Storm Damage • Fully Forecasted Test Year • Fully synchronizes costs with service • True-up adjustment • Adjustment applied to following year’s Rev. Req. • More Transparency • Moved data input and calculations into the formula

  7. Formula Changes • Consolidated both WES and WEN data on same page

  8. Posting & Review Time Line 2007 2008 2009 Jan. 1 Jan. 1 Billed RR From Prev Yr Formula Rate Rev Req For Next Yr including True-up Actual RR From Historic Yr Actual Costs from Form 1 Jan. 1 Jan. 1 Projected Period Actual (Historic) Period Calculation Year

  9. Protocols • Specify “how” the formula works • Gives specific rights to Customers • Review input • Point out input errors • Procedures to handle disputes • Makes the rates charged permanent

  10. Posting & Review Time Line Post Projected R.R for the next Rate Year Second Customer Meeting First Customer Meeting Apr. 15 Jun. 15 Oct. 22 Oct. 15 Oct. 30 Jul. 15 Post Actual R.R from previous yr Start of the next Rate Year Form 1 Released Start of Rate Year Jan. 1 Jan. 1

  11. Results of the Recalculation

  12. Change in Rev. Req. • October 15 : $117,907,428 • June 1 : $ 86,318,427 What Changed?? • $4 million – From Consolidated Cap • $27 million – Capital Additions • Wichita-Reno-Summit • Other Upgrades

  13. Revenue Requirements

  14. System Map

  15. The SPP Tariff and Your Bill

  16. Westar’s Total ATRR BPF Projects Revenue Requirements from Transmission Owners to SPP Pricing Zones SPP Tariff Westar Zonal ATRR Westar Zone Westar ATRR for facilities in OGE Zone EPP ATRR Regional Charge 100% of Total Regional Charge 33% of Total BPF ATRR BPF Zonal Charges 67% OGE’s Total ATRR OGE Zone BPF ATRR OGE Zonal ATRR All Other SPP Price Zones All Other SPP TO’s Total ATRR BPF ATRR Zonal ATRR

  17. SPP Pricing Zones $107,785,130 $6,440,406

  18. SPP Pricing Zones $6,198,396 $0 $6,198,396

  19. Load Ratio Share • Each Customer’s % of the average transmission peak • Calculated once a year • Based on previous calendar year • 12 month average peak

  20. Load Ratio Shares by Customer Group 12 Month Average Transmission Peak – Previous Calendar Year

  21. Westar Zonal Costs (Transmission Rate Only, No Ancillaries)2009 Estimated

  22. How Does it Work for Other Customers? The Same Way!

More Related