KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017

Transcription

1 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 1.01 ::Copy of DRs 1.1 Please provide a copy of all data requests submitted by all parties on the Annual Update filings, along with answers to those data requests. Please provide this information on a continuing basis. Response: Westar will post all data requests by all parties and Westar s responses to those data requests on the Westar OASIS, on an ongoing basis, consistent with the timeframe for responding set forth in the Transmission Formula Rate Protocols. Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

2 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 2 Data Request: KEPCo TFR 2.01::Stock-Based Compensation 2.1 In reference to the 2016 FERC Form 1 (FF1) for Westar Energy, Inc. (WEN), page 123.4, Stock-based Compensation, the early implementation of the Financial Accounting Standards Board ( FASB ) issued ASU No , please provide: a. A detailed description and explanation including copies of all journal entries reflecting the $3.3 million cumulative-effect adjustment to retained earnings as of the date of the adoption, including all FERC Accounts recorded for prior years; b. A detailed description and explanation including copies of all journal entries reflecting the 2016 current year s recognition of this change including all FERC Accounts recorded; and c. A detailed description and explanation how the implementation impacts the current TFR. Response: Prior to 2016, in accordance with Accounting Standards Codification 718, tax benefits resulting from income tax deductions in excess of compensation expense recorded on the books are recognized as a credit to additional paid-in capital (APIC) so long as the entity does not have a net operating loss carryforward. If the entity has a net operating loss carryforward, the tax benefit and credit to APIC would not be recognized until the deduction reduces taxes payable. In re-evaluating this accounting guidance in late 2015, Westar concluded that it recorded $3,326, of tax benefits and a credit to APIC for excess tax benefits for years 2011, 2012, and 2014, which should not have been recorded since Westar had a net operating loss carryforward in those years. The breakdown by year is highlighted in the attached Exhibit A. These amounts were included as part of Westar s overall tax entries so they are not separately identifiable; however, the highlight in the bottom left corner of Exhibit A shows the accounts impacted. When Westar identified this issue in late 2015, it recorded journal entries to reverse the impact as shown in Exhibit B. Westar adopted Accounting Standards Update No in January 2016 which changed the above accounting. This new guidance requires all excess tax benefits or deficiencies to be recognized as income tax benefits or expense, respectively. Thus, the excess tax benefits identified above were recognized as a cumulative-effect adjustment to retained earnings with the offsetting debit recorded to deferred tax assets. This result was achieved through two journal entries which are attached as Exhibit C and D. Exhibit E provides a summary of the various entries and the net impact after the last entries were recorded in The amounts recorded to account are included in Worksheets A-5 (WEN) and A-7 (WES) of the TFR as part of the labor related costs for the Long Term Incentive Program deferred income taxes. These amounts are included in the amount allocated to the Accumulated Deferred Income Taxes that are included in the Adjustments to Rate Base on the Actual Gross Rev worksheet of the TFR and are ultimately a determinant for the net revenue requirement. The gross amount included in Worksheets A-5 and A-7 of the current TFR is $3,326, combined for both WEN and WES. Prepared by or Under Supervision of: Morris, Travis Verification of Response

3 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 2of 2 I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

4

5 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Westar September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1080 Accum Provision for Depr FAS123R DIT APIC pool No Key 1087 FAS 123R Fed Deferred APIC Reclass ($2,737,345.16) $2,737, $0.00 $2,737, No Key 1087 FAS 123R State Deferred APIC Reclass ($588,676.37) $588, $0.00 $588, Total For: ($3,326,021.53) $3,326, $0.00 $3,326, Total: 1080 Accum Provision for Depr ($3,326,021.53) $3,326, $0.00 $3,326, Page 1 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:17

6 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Westar September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1900 Accum Deferred Income Taxes Deferred FIT Benefit No Key No Key 1087 FAS 123R Fed Deferred APIC Reclass ($2,737,345.16) $0.00 $2,737, FAS 123R State Deferred APIC Reclass ($588,676.37) $0.00 $588, ($2,737,345.16) ($588,676.37) Total For: ($3,326,021.53) $0.00 $3,326, ($3,326,021.53) Total: 1900 Accum Deferred Income Taxes ($3,326,021.53) $0.00 $3,326, ($3,326,021.53) Total (Journal Entry Check) ($6,652,043.06) $3,326, $3,326, $0.00 Page 2 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:17

7 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Westar Energy, Inc. September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1080 Accum Provision for Depr FAS123R DIT APIC pool No Key 1087 FAS 123R Fed Deferred APIC Reclass ($1,718,411.33) $1,718, $0.00 $1,718, No Key 1087 FAS 123R State Deferred APIC Reclass ($369,550.82) $369, $0.00 $369, Total For: ($2,087,962.15) $2,087, $0.00 $2,087, Total: 1080 Accum Provision for Depr ($2,087,962.15) $2,087, $0.00 $2,087, Page 1 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:32

8 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Westar Energy, Inc. September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1900 Accum Deferred Income Taxes Deferred FIT Benefit No Key No Key 1087 FAS 123R Fed Deferred APIC Reclass ($1,718,411.33) $0.00 $1,718, FAS 123R State Deferred APIC Reclass ($369,550.82) $0.00 $369, ($1,718,411.33) ($369,550.82) Total For: ($2,087,962.15) $0.00 $2,087, ($2,087,962.15) Total: 1900 Accum Deferred Income Taxes ($2,087,962.15) $0.00 $2,087, ($2,087,962.15) Total (Journal Entry Check) ($4,175,924.30) $2,087, $2,087, $0.00 Page 2 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:32

9 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Kansas Gas and Electric Co. September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1080 Accum Provision for Depr FAS123R DIT APIC pool No Key 1087 FAS 123R Fed Deferred APIC Reclass ($1,018,933.83) $1,018, $0.00 $1,018, No Key 1087 FAS 123R State Deferred APIC Reclass ($219,125.55) $219, $0.00 $219, Total For: ($1,238,059.38) $1,238, $0.00 $1,238, Total: 1080 Accum Provision for Depr ($1,238,059.38) $1,238, $0.00 $1,238, Page 1 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:46

10 Journal Entry Summary Report - By General Ledger Account and M Item Detail 2015 Master Case Kansas Gas and Electric Co. September Across All Operations GL Account Number Current Period Tax Return Key M Item Description M Item Activity DR Amount CR Amount Net DR/CR 1900 Accum Deferred Income Taxes Deferred FIT Benefit No Key No Key 1087 FAS 123R Fed Deferred APIC Reclass ($1,018,933.83) $0.00 $1,018, FAS 123R State Deferred APIC Reclass ($219,125.55) $0.00 $219, ($1,018,933.83) ($219,125.55) Total For: ($1,238,059.38) $0.00 $1,238, ($1,238,059.38) Total: 1900 Accum Deferred Income Taxes ($1,238,059.38) $0.00 $1,238, ($1,238,059.38) Total (Journal Entry Check) ($2,476,118.76) $1,238, $1,238, ($0.00) Page 2 of 2 Rpt # Tax Accrual /20/17 11:13 11:13:46

11 Note: The offsetting debit to the credit to account is included with other tax amounts that make up the amount recorded to account since the journal entry includes numerous tax items.

12 Note: The offsetting debit to the credit to account is included with other tax amounts that make up the amount recorded to account since the journal entry includes numerous tax items.

13

14

15 KEPCO 2.1 WEN - Summary of Entries WEN WES 2011 Debit Credit Debit Credit AC , , AC , , AC ,071, , AC ,071, , AC , , AC , , AC ,087, ,238, AC ,087, ,238, AC ,087, ,238, AC ,087, ,238, AC ,087, ,238, AC /AC ,238, ,238, AC ,326, Net Impact AC ,087, ,238, AC /AC ,238, ,238, AC ,326,021.53

16 Source Exhibit A Exhibit A Exhibit A Exhibit B - pgs. 3&4/5&6 Exhibit C - pg. 1/2 Exhibit D - pg. 1/2

17 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.02::Merger-related Expenses 2.2 In reference to the 2016 FERC Form 1 (FF1) for Westar Energy, Inc. (WEN), pages , Pending Merger (with Great Plains Energy Incorporated), please confirm that all merger-related expenses, including internal labor have been included in FERC Account Other Deductions and are/have been excluded from the current TFR and prior TFRs. Response: All merger-related expenses, including internal labor, are included in FERC Account Other Deductions and are excluded from all TFRs. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

18 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Data Request: KEPCo TFR 2.03::Pole Attachments 2.3 In reference to A-1 Revenue Credits Account 454 Pole Attachments, please provide the following: Page 1of 1 a. A detailed description and explanation for the large decrease in the number of Transmission Poles with Attachments for WEN from 2014 to 2016; b. A detailed description and explanation for the large decrease in the number of Billable Attachments for WEN from 2014 to 2016; and c. A detailed description and explanation for the decrease in the number of Transmission Poles with Attachments for WES from 2014 to Response: a. A-1 (Rev. Credit), Section II, Line 9 Transmission Attachments increased from 5,389 in 2014 to 5,589 in 2016 for WEN. b. See (a) above. c. A-1 (Rev. Credit), Section II, Line 9 Transmission Attachments increased from 2,993 in 2014 to 3,116 in 2016 for WES. Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

19 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Data Request: KEPCo TFR 2.04::A-1 Revenue Credits Final Data 2.4 In reference to A-1 Revenue Credits Final Data (2016 Data Final), please provide the following: Page 1of 1 a. A detailed description and explanation for the large decrease in the Account Transmission Service revenues from $85,159,252 in 2015 to $69,486,198 for 2016; and b. Copies of all supporting documentation and calculations for the approximate $15.7 million decrease in Account Transmission Service revenues. Response: a. The decrease in account Transmission Service revenues from $85,159,252 in 2015 to $69,486,198 for 2016 is due primarily to the following factors: 1. Z2 which was charged to Westar in 2016 but not 2015 was $7.4M. 2. Point To Point Transmission Service went down by $3.3M in NITS Service from companies other than Westar Retail went down by $5M. b. See attached. Prepared by or Under Supervision of: Reuter, Buck S. Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

20 2016 Month ated NITS Individual NITS NITS BBO Total Point To Point January 2,936, ,651 2,232,793 5,746,556 1,128,365 February 2,754, ,126 2,492,831 5,902,578 1,142,471 March 2,679, ,126 2,492,831 5,827,408 1,196,874 April 2,660, ,149 2,492,918 5,808,871 1,169,187 May 2,700, ,195 2,493,093 5,849,121 1,208,165 June 1,424, ,369 1,295,145 3,059, ,181 July 2,386, ,176 2,253,300 5,232, ,658 August 2,385, ,176 2,253,300 5,231, ,986 September 2,406, ,180 2,253,316 5,252,063 1,141,173 October 2,418, ,865 2,263,609 5,276, ,796 November 2,702, ,160 2,264,814 5,562, ,874 December 2,659, ,201 2,245,784 5,495,077 1,021,308 Total 30,115,161 7,095,374 27,033,735 64,244,269 12,685,036 Month ated NITS Individual NITS NITS BBO Total Point To Point January (431,682) (25,155) 6,602 (450,235) (152,291) February (53,075) 63, , ,583 (250,261) March (232,591) 70, ,126 70,835 (514,273) April (547,535) 70, ,241 (243,963) (50,512) May (114,939) 70, , ,851 (85,867) June (1,398,561) (244,339) (964,334) (2,607,234) (318,273) July (426,210) 7,377 (7,122) (425,955) (480,361) August (434,786) 7,478 (6,733) (434,041) (523,629) September (399,956) 7,438 (6,886) (399,404) (193,938) October (376,796) 10,122 3,407 (363,266) (46,658) November (234,699) 18,437 35,606 (180,655) (226,888) December (334,098) 9,109 (311) (325,300) (460,210) Total (4,984,928) 64,867 (6,724) (4,926,785) (3,303,161)

21 Z2 Month ated NITS Individual NITS - 6,874,921 January $ 3,367,794 $ 602,806-7,045,049 February $ 2,807,696 $ 591,732-7,024,281 March $ 2,912,041 $ 584,826-6,978,059 April $ 3,208,339 $ 584,818-7,057,286 May $ 2,815,773 $ 584,819-4,037,738 June $ 2,822,604 $ 584,708-6,157,775 July $ 2,812,851 $ 584,799-6,059,260 August $ 2,820,584 $ 584,699 (6,539,324) (146,089) September $ 2,806,524 $ 584,742 (282,636) 5,975,135 October $ 2,795,297 $ 584,742 (313,255) 6,214,292 November $ 2,937,396 $ 576,724 (307,893) 6,208,491 December $ 2,993,190 $ 581,092 (7,443,108) 69,486,198 Total $ 35,100,089 $ 7,030,507 Z2 - (602,527) - (6,678) - (443,438) - (294,476) - 102,984 - (2,925,507) - (906,316) - (957,670) (6,539,324) (7,132,666) (282,636) (692,560) (313,255) (720,798) (307,893) (1,093,403) (7,443,108) (15,673,054)

22 2015 NITS BBO Total Point To Point $ 2,226,191 $ 6,196,791 1,280,657 7,477,448 $ 2,259,567 5,658,995 1,392,732 7,051,727 $ 2,259,705 5,756,572 1,711,147 7,467,719 $ 2,259,677 6,052,834 1,219,700 7,272,534 $ 2,259,678 5,660,270 1,294,031 6,954,302 $ 2,259,480 5,666,792 1,296,454 6,963,245 $ 2,260,422 5,658,072 1,406,019 7,064,091 $ 2,260,033 5,665,316 1,351,614 7,016,930 $ 2,260,201 5,651,467 1,335,110 6,986,577 $ 2,260,202 5,640,241 1,027,454 6,667,695 $ 2,229,208 5,743,328 1,191,762 6,935,090 $ 2,246,094 5,820,377 1,481,517 7,301,894 $ 27,040,459 $ 69,171,054 15,988,197 85,159,252

23 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.05::Accumulated Depreciation (WEN) 2.5 In review of the Accumulated Depreciation shown on the Actual Gross Rev, p. 1, l. 10a, Column (3), Intangible, Westar Energy, Inc. (WEN), please reconcile the $43,476,482 to the WEN 2016 FF1, Page 200, Line 21, in the amount of $53,052,900. Response: The accumulated depreciation balance of $43,476,482 reported in the TFR only includes depreciation related to software. Computer software is the only type of asset reported in Intangible Plant on page 204 line 5 of the FF1. The total amount of accumulated depreciation on page 200 of the FF1 includes the depreciation related to computer software and leasehold improvements. Below is a breakdown of the total amount reported on the FF1: Leasehold Improvements - $ 9,576,418 Software - $43,476,482 Total - $53,052,900 Prepared by or Under Supervision of: Broughton, Zachary Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

24 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.06::Accumulated Depreciation (WES) 2.6 In review of the Accumulated Depreciation shown on the Actual Gross Rev, p. 1, l. 10a, Column (4), Intangible, Kansas Gas and Electric Company (WES), please reconcile the $19,818,049 to the WES 2016 FF1, Page 200, Line 21, in the amount of $84,687,016. Response: The accumulated depreciation balance of $19,818,049 reported in the TFR only includes depreciation related to software. Computer software is the only type of asset reported in Intangible Plant on page 204 line 5 of the FF1. The total amount of accumulated depreciation on page 200 of the FF1 includes the depreciation related to computer software, leasehold improvements and La Cygne lease. Below is a breakdown of the total amount reports on the FF1: Leasehold Improvements - $ 4,594,815 Software - $19,818,049 La Cygne Lease - $60,274,152 Total - $84,687,016 Prepared by or Under Supervision of: Broughton, Zachary Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

25 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.07(a)::Transmission Storm Reserve (WEN) 2.7 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (3), Transmission Storm Damage Reserve, Acct 228.1, for WEN and Note S, please provide the following: a. A detailed calculation of the $954,196 amount reflected there Response: This is not a calculated amount as it comes directly from the general ledger. The support is attached. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

26 WEC Westar Energy, Inc. Actual YTD - Year-to-Date 2016 Dec - December ComFmt - Commercial Format - UtlFmt - Utility Format Accum Prov - Prop Ins - Trans 954, Accum Prov-Injuries&Dmgs-Trans 228, Accum Prov for Envir Res-Trans 138,229.00

27 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.07(b)::Transmission Storm Reserve (WEN) 2.7 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (3), Transmission Storm Damage Reserve, Acct 228.1, for WEN and Note S, please provide the following: b. A detailed explanation for the $954,196 being reflected as an increase to rate base when Account is a liability account for the Accumulated Provision for Property Insurance and the normal balance is a credit balance; Response: b. The transmission storm damage reserve reflected on the Actual Gross Rev, p.1, l. 19b, Column (3) in the amount of $954,196 is properly subtracted from rate base as a component of the formula on the Actual Gross Rev, p. 1, l. 20, Column (7), TOTAL ADJUSTMENTS, line 19 + line 19a - line 19b. Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

28 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.07(c)::Transmission Storm Reserve (WEN) 2.7 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (3), Transmission Storm Damage Reserve, Acct 228.1, for WEN and Note S, please provide the following: c. A detailed breakdown of the components of Account balance of $4,839,833 reflected in the WEN 2016 FF1, page 112, line 27, column c; Response: See attachment. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

29 WEC Westar Energy, Inc. YTD - Year-to-Date Dec - December u - Accum Provision for Property Insurance 4,839, Accum Prov - Property Ins 3,885, Accum Prov - Prop Ins - Trans 954,196.21

30 Westar Energy Property Insurance Reserve Year-to-Date 2016 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 12 Months Ended Beginning Balance (4,753,099.28) (5,001,991.61) (5,250,883.94) (2,733,254.48) (2,982,146.81) (3,231,039.14) (3,479,931.47) (3,728,823.80) (3,811,984.56) (4,068,820.94) (4,317,713.27) (4,023,268.73) (4,753,099.28) Accrue Property Insurance Reserve (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (3,129,447.96) ate Transmission Operating Reserves 11, , , , , , , , , , , , , Storm Costs 2,766, , (7,944.05) 543, , ,854, Cash Receipt/Adjustments Ending Balance (5,001,991.61) (5,250,883.94) (2,733,254.48) (2,982,146.81) (3,231,039.14) (3,479,931.47) (3,728,823.80) (3,811,984.56) (4,068,820.94) (4,317,713.27) (4,023,268.73) (3,885,636.65) (3,885,636.65) Prepared By: Karla Mosher Financial Accounting 2 8/7/2017 3:30 PM

31 Westar Energy Accum Prov Property Insurance-Transmission Year-to-Date 2016 JAN FEB MAR APR Beginning Balance (911,783.71) (923,678.71) (935,573.71) (875,448.96) Accrual (11,895.00) (11,895.00) (11,895.00) (11,895.00) Storm Costs 72, Ending Balance (923,678.71) (935,573.71) (875,448.96) (887,343.96)

32 MAY JUN JUL AUG SEP OCT (887,343.96) (899,238.96) (911,133.96) (923,028.96) (934,923.96) (946,818.96) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (899,238.96) (911,133.96) (923,028.96) (934,923.96) (946,818.96) (958,713.96)

33 NOV DEC 12 Months Ended (958,713.96) (970,608.96) (911,783.71) (11,895.00) (11,895.00) (142,740.00) 28, , (970,608.96) (954,196.21) (954,196.21)

34 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.07(d)::Transmission Storm Reserve (WEN) 2.7 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (3), Transmission Storm Damage Reserve, Acct 228.1, for WEN and Note S, please provide the following: d. A detailed explanation of Note S * which states: All future accruals of transmission storm damage reserves will be subtracted from rate base until they are applied to offset the December 2007 ice storm damage expenses. It appears that Note S is stating that the balance in this account should be subtracted from rate base and not added to rate base. This would also impact prior TFRs. Response: d. See response to 2.7(b) Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

35 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.08(a)::Transmission Storm Reserve (WES) 2.8 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (4), Transmission Storm Damage Reserve, Acct 228.1, for WES and Note S, please provide the following: a. A detailed calculation of the $638,815 amount reflected there; Response: This is not a calculated amount as it comes directly from the general ledger as provided in the attached file. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

36 KGEC Kansas Gas and Electr YTD - Year-to-Date Dec - December Accum Prov - Property Ins 4,718, Accum Prov - Prop Ins - Trans 638, u - Accum Provision for Property Insurance 5,356,826.78

37

38 Westar Energy Property Insurance Reserve Year-to-Date 2016 JAN FEB Beginning Balance (3,737,408.87) (3,986,301.20) Accrue Property Insurance Reserve (260,787.33) (260,787.33) ate Transmission Operating Reserves 11, , Storm Costs Cash Receipt/Adjustments Ending Balance (3,986,301.20) (4,235,193.53)

39 MAR APR MAY JUN JUL (4,235,193.53) (3,861,555.05) (4,110,447.38) (4,359,339.71) (4,608,232.04) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) 11, , , , , , (3,861,555.05) (4,110,447.38) (4,359,339.71) (4,608,232.04) (4,857,124.37)

40 AUG SEP OCT NOV DEC (4,857,124.37) (4,945,037.92) (5,209,124.04) (5,458,016.37) (5,461,289.27) (260,787.33) (260,787.33) (260,787.33) (260,787.33) (260,787.33) 11, , , , , , (15,193.79) 245, , (4,945,037.92) (5,209,124.04) (5,458,016.37) (5,461,289.27) (4,718,011.68)

41 12 Months Ended (3,737,408.87) (3,129,447.96) 142, ,006, (4,718,011.68)

42 Westar Energy Accum Prov Property Insurance-Transmission Year-to-Date 2016 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 12 Months Ended Beginning Balance (663,554.77) (675,449.77) (687,344.77) (553,830.47) (565,725.47) (577,620.47) (589,515.47) (601,410.47) (591,235.10) (603,130.10) (615,025.10) (626,920.10) (663,554.77) Accrual (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (11,895.00) (142,740.00) Storm Costs 145, , , Ending Balance (675,449.77) (687,344.77) (553,830.47) (565,725.47) (577,620.47) (589,515.47) (601,410.47) (591,235.10) (603,130.10) (615,025.10) (626,920.10) (638,815.10) (638,815.10) Prepared By: Karla Mosher Financial Accounting 7 8/7/2017 3:31 PM

43 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.08(b)::Transmission Storm Reserve (WES) 2.8 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (4), Transmission Storm Damage Reserve, Acct 228.1, for WES and Note S, please provide the following: b. A detailed explanation for the $638,815 being reflected as an increase to rate base when Account is a liability account for the Accumulated Provision for Property Insurance and the normal balance is a credit balance; Response: b. The transmission storm damage reserve reflected on the Actual Gross Rev, p.1, l. 19b, Column (4) in the amount of $638,815 is properly subtracted from rate base as a component of the formula on the Actual Gross Rev, p. 1, l. 20, Column (7), TOTAL ADJUSTMENTS, line 19 + line 19a - line 19b. Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

44 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.08(c)::Transmission Storm Reserve (WES) 2.8 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (4), Transmission Storm Damage Reserve, Acct 228.1, for WES and Note S, please provide the following: c. A detailed breakdown of the components of Account balance of $5,356,827 reflected in the WES 2016 FF1, page 112, line 27, column c. Response: See attached. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

45 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.08(d)::Transmission Storm Reserve (WES) 2.8 In review of the Adjustments to Rate Base shown on the Actual Gross Rev, p. 1, l. 19b, Column (4), Transmission Storm Damage Reserve, Acct 228.1, for WES and Note S, please provide the following: d. A detailed explanation of Note S * which states: All future accruals of transmission storm damage reserves will be subtracted from rate base until they are applied to offset the December 2007 ice storm damage expenses. It appears that Note S is stating that the balance in this account should be subtracted from rate base and not added to rate base. This would also impact prior TFRs. Response: d. See response to 2.8(b) Prepared by or Under Supervision of: Wealand, Tanner Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

46 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.09::Prepayments 2.9 In review of the Prepayments (Account 165) shown on Actual Gross Rev, p. 1, l. 24, please provide a detailed listing of the components with amounts for the following: a. WEN prepayments amount of $11,053,167; and b. WES prepayments amount of $5,315,410. Response: See attached. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

47 Westar(WEN) December Prepayments - Insurance 2,633, Prepayment-Salary Continuation 149, Prepaid Expenses - Other 1,150, Prepaid Maintenance 6,591, Prepayments - Postage 223, Prepayments - JEC Water Purch 304, u - Prepayments 11,053, KGE(WES) December Prepayments - Insurance 1,945, Prpd COLI Premium-KGE The Plan 568, Prepaid COLI Premium-KGE Other 801, Prepayments - WCNOC 1,965, Prepaid Maintenance 34, u - Prepayments 5,315, ) All business insurance 2) Corporate-owned life insurance policy premiums 3) Wolf Creek working capital 4) Owner controlled insurance, NERC assessment fees, Software licenses 5) Maintenance agreements, IT software, and wind generating facilities 6) Postage meters 7) Water usage for Jeffrey Energy Center

48 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.10::Station Equipment Maintenance (WEN) 2.10 In review of the total O&M expense shown on Actual Gross Rev, p. 2, l. 1, and specifically FERC Acct. 570 Maintenance of Station Equipment reflected on the WEN 2016 FF1, p. 321, l. 107, please provide a detailed explanation for the $327,652 decrease in the expense from $2,652,563 to $2,324,911 for 2015 to 2016 respectively. Response: Decrease due primarily to lower costs for various smaller routine maintenance activities including internal transformer inspections, circuit switcher maintenance, transformer rewinds and location transfers, transformer bushing replacements, hydraulic pump repairs, and breaker replacements. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

49 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.11::Station Equipment Maintenance (WES) 2.11 In review of the total O&M expense shown on Actual Gross Rev, p. 2, l. 1, and specifically FERC Acct. 570 Maintenance of Station Equipment reflected on the WES 2016 FF1, p. 321, l. 107, please provide a detailed explanation for the $615,999 increase in the expense from $1,291,756 to $1,907,755 for 2015 to 2016 respectively. Response: Increase due primarily to higher costs for various smaller routine maintenance activities including transformer bushing replacements, transformer inspections, repairs, and functional testing, breaker maintenance, substation switching, and emergent equipment maintenance. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

50 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.12::Overhead Line Maintenance (WEN) 2.12 In review of the total O&M expense shown on Actual Gross Rev, p. 2, l. 1, and specifically FERC Acct. 571 Maintenance of Overhead Lines reflected on the WEN 2016 FF1, p. 321, l. 108, please provide a detailed explanation for the $1,759,148 increase in the expense from $2,881,212 to $4,640,360 for 2015 to 2016 respectively. Response: Increase due primarily to higher costs associated with numerous routine maintenance activities on overhead lines and related equipment. One driver is a $0.4 million increase related to inspections of overhead lines and equipment as well as ground line inspections. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

51 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.13::Overhead Line Maintenance (WES) 2.12 In review of the total O&M expense shown on Actual Gross Rev, p. 2, l. 1, and specifically FERC Acct. 571 Maintenance of Overhead Lines reflected on the WEN 2016 FF1, p. 321, l. 108, please provide a detailed explanation for the $1,759,148 increase in the expense from $2,881,212 to $4,640,360 for 2015 to 2016 respectively. Response: Increase due primarily to $0.7 million increase in tree trimming and clearing expenses and $0.2 million increase related to inspections of overhead lines and equipment. Remaining increase due primarily to higher costs associated with routine maintenance activities on overhead lines and related equipment. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

52 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.14::Admin & General Salaries (WEN) 2.14 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 920 Administrative and General Salaries reflected on the WEN 2016 FF1, p. 323, l. 181, please provide a detailed explanation for the $3,745,728 decrease in the expense from $31,213,809 to $27,468,081 for 2015 to 2016 respectively. Response: The main drivers resulting in a decrease in A&G salaries from 2015 to 2016 is a reduction of headcount and reclassification of merger-related A&G salaries expense for 2016 only to below the line. This decrease is partially offset by normal wage increases. All employees are employees of Westar Energy, Inc. Employees' salaries are allocated between WEN/WES based on either the time they record to specific locations or a position specific allocation factor that is determined on an annual basis. Prepared by or Under Supervision of: Dick, Miranda Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

53 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.15::Admin & General Salaries (WES) 2.15 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 920 Administrative and General Salaries reflected on the WES 2016 FF1, p. 323, l. 181, please provide a detailed explanation for the $1,467,179 decrease in the expense from $27,351,730 to $25,884,551 for 2015 to 2016 respectively. Response: See response to KEPCo TFR 2.14::Admin and General Salaries for WEN, as it is also applicable to WES. Prepared by or Under Supervision of: Dick, Miranda Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

54 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.16::Office Supplies and Expenses 2.16 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 921 Office Supplies and Expenses reflected on the WEN 2016 FF1, p. 323, l. 182, please provide a detailed explanation for the $424,397 increase in the expense from $6,213,095 to $6,637,492 for 2015 to 2016 respectively. Response: The $424,397 increase in (921) Office Supplies and Expenses for WEN in 2016 is due primarily to increases in the following categories: Employee expenses $128,438 Office supplies & expenses $122,116 Cloud hosting fees $ 68,744 Telephone support $ 48,981 Internet expense $ 48,117 Cellular phone expense $ 27,369 Prepared by or Under Supervision of: Honas, Beckey K. Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

55 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.17::Outside Services Employed (WEN) 2.17 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 923 Outside Services Employed reflected on the WEN 2016 FF1, p. 323, l. 184, please provide a detailed explanation for the $1,316,726 increase in the expense from $14,653,855 to $15,970,581 for 2015 to 2016 respectively. Response: The increase in (923) Outside Services Employed in 2016 was due primarily to an increase in service fees paid to FIS Global Commercial Services for maintenance of our mainframe. We began outsourcing these services in July of 2015 at a cost of $103,800 per month through October Starting in November 2015, the fees increased to $264,771 per month, and will continue through December Approximately 38% of the charges are allocated to WES. The net increase in 2016 related to these services is $2,232,510, of which $1,391,523 of the net increase was recorded to WEN and $840,987 was recorded to WES. Also contributing to the increase in 2016 were fees totaling $668,246 paid to Cohesive Solutions Inc. for consulting services related to the implementation of our EAM/Maximo system, which did not qualify as capital charges. $416,518 of these charges were charged to WEN and $251,728 were charged to WES. Prepared by or Under Supervision of: Honas, Beckey K. Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

56 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.18::Outside Services Employed (WES) 2.18 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 923 Outside Services Employed reflected on the WES 2016 FF1, p. 323, l. 184, please provide a detailed explanation for the $1,431,748 increase in the expense from $6,244,726 to $7,676,474 for 2015 to 2016 respectively. Response: See response to KEPCo TFR 2.17 Outside Services Employed, as it includes an explanation for WEN and WES. Prepared by or Under Supervision of: Honas, Beckey K. Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

57 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.19::Injuries & Damages (WEN) 2.19 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 925 Injuries and Damages reflected on the WEN 2016 FF1, p. 323, l. 186, please provide a detailed explanation for the $434,351 increase in the expense from $3,870,268 to $4,304,619 for 2015 to 2016 respectively. Response: Increase due primarily to a $0.5 million increase for injuries and damages associated with workers compensation claims. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

58 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.20::Injuries & Damages (WES) 2.20 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 925 Injuries and Damages reflected on the WES 2016 FF1, p. 323, l. 186, please provide a detailed explanation for the $315,911 increase in the expense from $3,345,433 to $3,661,344 for 2015 to 2016 respectively. Response: Increase due primarily to a $0.3 million increase for injuries and damages associated with workers compensation claims. Prepared by or Under Supervision of: Morris, Travis Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

59 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.21::Employee Pensions and Benefits (WEN) 2.21 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 926 Employee Pensions and Benefits reflected on the WEN 2016 FF1, p. 323, l. 187, please provide a detailed explanation for the $6,190,213 decrease in the expense from $34,417,490 to $28,227,277 for 2015 to 2016 respectively. Response: The primary drivers in the decrease in overall Pension and Benefits is attributable to decreased pension and post-retirement medical expense. The cause of the decrease in both the pension and post-retirement medical expense is due to an increase in the discount rate and updates to mortality tables, both of which decrease expense. Refer to the attached reports provided by the Company's actuary related to the valuation of the pension and post-retirement medical plans. This decrease in Pension and Benefits was partially offset by an increase in the active medical reserve, which is determined based on historical averages of active medical, dental, and prescription claims. Prepared by or Under Supervision of: Dick, Miranda Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

60 Westar Energy, Inc Medical Reserve As of December 31, 2015 M:\FinSvcs\BENACCT\WRI\Monthly Reporting\Account Recons\2016\Balance sheet\q416\[ Q416.xlsx]Detail Dr (+) Cr (-) (a) (b) (c ) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) Line # Description PY TOTAL JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER YTD TOTAL TOTAL (+b thru m) (a+n) MEDICAL RESERVE 2 3 BEGINNING BALANCE (2,009,305.48) (3,886,000.00) (3,886,000.00) (3,886,000.00) (3,831,000.00) (3,831,000.00) (3,831,000.00) (3,825,800.00) (3,826,000.00) (3,826,000.00) (3,757,000.00) (3,757,000.00) (3,757,000.00) (2,009,305.48) 4 RESERVE ACCRUAL -JE R (168,909,561.85) (1,789,708.75) (826,324.19) (713,940.41) (1,255,720.63) (1,144,454.14) (638,703.57) (1,109,918.01) (978,665.67) (1,021,443.54) (1,724,196.72) (1,029,464.15) (1,407,021.84) (13,639,561.62) (182,549,123.47) RESERVE ACCRUAL ADJ - JE R , , RESERVE ACCRUAL ADJ - JE R (161,837.85) 0.00 (161,837.85) 7 TRUSTEE REIMB.-Act FMH Claims - JE R ,970, ,778, ,299, ,194, ,010, ,375, ,150, ,577, ,421, ,782, ,179, ,728, ,972, ,472, ,442, EE CONTRIBUTIONS - JE R (70,463,870.60) (621,721.12) (620,563.33) (616,919.03) (814,086.88) (407,016.93) (609,432.62) (609,656.42) (609,072.79) (605,870.14) (607,445.08) (607,902.75) (606,811.23) (7,336,498.32) (77,800,368.92) 9 EE CONTRIBUTIONS -Cobra deposits - cash receipt (627,226.41) (2,315.12) 0.00 (6,143.45) (2,990.55) (1,447.16) (2,918.23) (1,293.78) (1,005.97) (1,584.35) (866.62) (20,309.48) (647,535.89) 10 FMH REFUNDS - Active - JE R (1,380,278.99) (11,203.82) (12,523.85) (34,390.76) (1,210.92) (28,761.45) (9,952.56) (3,406.40) (21,593.75) (37,624.65) (8,481.56) (174,275.22) (57,768.28) (401,193.22) (1,781,472.21) 11 REFUNDS - Other (1,229.39) 0.00 (1,229.39) 12 DELTA DENTAL 25,074, , , , , , , , , , , , , ,100, ,175, Delta Dental Receivable - duplicate payment CAREMARK Formulary rebate (46,613.77) 0.00 (46,613.77) 15 HSA Company Contribution 690, , , , , , , , , , , , ,174, HSA Company Contribution - estimate Walgreen rebate (67,774.11) 0.00 (67,774.11) 18 SUN LIFE STOPLOSS MENT - receivable on cy claims ( ) 0.00 (119,452.23) 119, (202,234.50) (57,352.47) (259,586.97) (259,586.97) 19 SUN LIFE STOPLOSS MENT - receivable on py claims (266,777.80) 61, , (204,975.78) 20 SUN LIFE STOPLOSS MENT - cash receipt (5,979,833.10) (61,802.02) (27,385.15) (119,543.65) (3,785.88) (18,720.89) (3,781.73) (72,764.55) (93,902.42) (401,686.29) (6,381,519.39) 21 LEAVE OF ABSENCE MED INS PMT - cash receipt (77,394.44) (285.48) (548.64) (364.53) (274.32) (274.32) (274.32) (274.32) (274.32) (274.32) (274.32) (3,118.89) (80,513.33) 22 LEAVE OF ABSENCE DENTAL INS PMT - cash receipt (12,990.50) (36.94) (77.28) (66.36) (38.64) (38.64) (38.64) (38.64) (38.64) (38.64) (38.64) (451.06) (13,441.56) 23 LEAVE OF ABSENCE LIFE INS PMT (3,572.93) (33.44) (66.88) (46.17) (33.44) (33.44) (33.44) (33.44) (33.44) (33.44) (33.44) (380.57) (3,953.50) 24 SEVERANCE - MEDICAL INS PMT (1,790.00) 0.00 (1,790.00) 25 SEVERANCE - DENTAL INS PMT (458.40) 0.00 (458.40) 26 BC/BS Claims 1, , CIGNA HEALTHCARE (1,076.00) 0.00 (1,076.00) 28 SUBSIDIARY REIMBURSEMENT (JE 47) (64,708.75) 0.00 (64,708.75) 29 WESTAR COMMUNICATIONS (10,918.65) 0.00 (10,918.65) 30 Expense due to Severance (634,473.60) 0.00 (634,473.60) 31 PR Tax (1Q 2011 COBRA credit) (671.65) 0.00 (671.65) 32 US Treasury (COBRA reimbursement) - cash receipt (37,772.76) 0.00 (37,772.76) 33 US Treasury (PR Tax Penalty) - cash receipt (14,809.81) 0.00 (14,809.81) 34 Ceridian Tax Service (3,065.48) 0.00 (3,065.48) 35 Express Scripts rebate SUB TOTAL , , (200.00) (0.00) 69, (74,000.00) 55, ENDING BALANCE * (3,886,000.00) (3,886,000.00) (3,886,000.00) (3,831,000.00) (3,831,000.00) (3,831,000.00) (3,825,800.00) (3,826,000.00) (3,826,000.00) (3,757,000.00) (3,757,000.00) (3,757,000.00) (3,831,000.00) (3,831,000.00) * At the end of each quarter reserve is set based on 2 X the prior 12 months average for FMH and Delta Dental claims plus 4 week average Walgreens/ESI Claims. 43 This account number represents reserve recorded by the Company to cover the payment of medical and dental claims incurred but not reported since the Company is self-insured. 44 Prepared by: Karen Medford/Benefits Accounting st Quarter nd Quarter FMH 4/14-3/15 18,172, /12 *2 = 3,028, FMH 7/14-6/15 18,325, /12 *2 = 3,054, Delta Dental 4/14-3/15 2,057, /12 *2 = 342, Delta Dental 7/14-6/15 2,049, /12 *2 = 341, ESI 3/14-2/15 5,975, /52 *4 = 459, ESI 6/14-5/15 5,593, /52 *4 = 430, ,831, ,826, Set reserve at 3,831,000 Set reserve at 3,826, ation % ation % (713,338.27) GL BU (610,002.31) (431,115.87) GL BU (368,663.36) 59 (1,144,454.14) (978,665.67) rd Quarter th Quarter FMH 10/14-09/15 17,651, /12 *2 = 2,941, FMH 01/15-12/15 18,471, /12 *2 = 3,078, Delta Dental 10/14-09/15 2,089, /12 *2 = 348, Delta Dental 01/15-12/15 2,100, /12 *2 = 350, ESI 09/14-08/15 6,074, /52 *4 = 467, ESI 12/14-11/15 5,229, /52 *4 = 402, ,757, ,830, Set reserve at 3,757,000 Set reserve at 3,831, ation % D ation % (641,665.00) (876,996.71) A (387,799.15) (530,025.13) B 73 (1,029,464.15) (1,407,021.84) C Refer to S:\FinSvcs\BENACCT\WRI\Monthly Reporting\JEs\2010\JE Medical Reserve Average Claims.xls for the quarterly reserve computations shown in this section. Prepared by: Tom Steinmetz/Benefits Accounting Prepared by Karen Medford/Benefits Accounting 1 7/17/2017 3:53 PM

61 Westar Energy, Inc Medical Reserve As of December 31, 2016 M:\FinSvcs\BENACCT\WRI\Data Requests\2017 GFR Annual Update\KEPCo 2nd Data Request\P&B Data\[ Q416.xlsx]Detail Dr (+) Cr (-) (a) (b) (c ) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Line # Description PY TOTAL JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER YTD TOTAL (+b thru m) MEDICAL RESERVE 2 3 BEGINNING BALANCE (2,009,305.48) (3,831,000.00) (3,831,000.00) (3,831,000.00) (4,117,000.00) (4,117,000.00) (4,117,000.00) (4,255,000.00) (4,255,000.00) (4,255,000.00) (4,345,000.00) (4,345,000.00) (4,345,000.00) 4 RESERVE ACCRUAL -JE R (182,549,123.47) (2,519,373.58) (1,386,583.89) (1,266,090.81) (1,434,786.92) 332, (1,529,959.86) (931,502.76) (1,155,916.23) (1,876,647.39) (1,100,039.97) (1,661,700.92) (2,789,571.95) (17,319,846.67) 5 RESERVE ACCRUAL Correction - JE (1,450,906.89) (1,450,906.89) RESERVE ACCRUAL ADJ - JE R , RESERVE ACCRUAL ADJ - JE R (161,837.85) TRUSTEE REIMB.-Act FMH Claims - JE R ,442, ,544, ,686, ,778, ,669, ,516, ,827, ,402, ,665, ,085, ,520, ,068, ,236, ,002, EE CONTRIBUTIONS - JE R (77,800,368.92) (589,802.44) (584,523.01) (766,108.89) (391,088.32) (2,028,409.39) 874, (573,786.25) (753,420.97) (392,209.10) (571,905.68) (570,079.10) (565,884.05) (6,913,157.41) 10 EE CONTRIBUTIONS -Cobra deposits - cash receipt (647,535.89) (1,398.83) (162.89) (6,373.68) (1,288.32) 0.00 (7,059.84) (7,484.64) (1,889.63) (7,289.66) (4,139.13) (5,608.15) (2,328.37) (45,023.14) 11 FMH REFUNDS - Active - JE R (1,781,472.21) (21,591.33) (21,036.89) (193,701.29) (6,661.05) (11,431.86) (8,446.70) (2,659.58) (10,294.28) (8,507.47) (2,994.44) (13,223.65) (5,917.80) (306,466.34) 12 REFUNDS - Other (1,229.39) DELTA DENTAL 27,175, , , , , , , , , , , , , ,071, Delta Dental Receivable - duplicate payment International Subrogation Management , , Subrogation Recovery/accrual (1,290.36) (250,000.00) (251,290.36) 17 CAREMARK Formulary rebate (46,613.77) HSA Company Contribution 1,174, , , , , , , , , , , HSA Company Contribution - estimate Walgreen rebate (67,774.11) SUN LIFE STOPLOSS MENT - receivable on cy claims ( ) SUN LIFE STOPLOSS MENT - receivable on py claims (204,975.78) SUN LIFE STOPLOSS MENT - receivable on 2015 claims (259,586.97) 34, , , SUN LIFE STOPLOSS MENT - cash receipt (6,381,519.39) (34,353.68) (258,685.70) 0.00 (89.75) (293,129.13) 25 LEAVE OF ABSENCE MED INS PMT - cash receipt (80,513.33) (274.32) (274.32) (274.32) (274.32) (274.32) (274.32) (274.32) (548.64) (274.32) (274.32) 0.00 (548.64) (3,566.16) 26 LEAVE OF ABSENCE DENTAL INS PMT - cash receipt (13,441.56) (38.64) (38.64) (38.64) (38.64) (38.64) (38.64) (38.64) (77.28) (38.64) (38.64) 0.00 (77.28) (502.32) 27 LEAVE OF ABSENCE LIFE INS PMT (3,953.50) (33.44) (33.44) (33.44) (33.44) (33.44) (33.44) (33.44) (66.88) (33.44) (33.44) 0.00 (66.88) (434.72) 28 SEVERANCE - MEDICAL INS PMT (1,790.00) SEVERANCE - DENTAL INS PMT (458.40) BC/BS Claims 1, CIGNA HEALTHCARE (1,076.00) SUBSIDIARY REIMBURSEMENT (JE 47) (64,708.75) WESTAR COMMUNICATIONS (10,918.65) Expense due to Severance (634,473.60) PR Tax (1Q 2011 COBRA credit) (671.65) US Treasury (COBRA reimbursement) - cash receipt (37,772.76) US Treasury (PR Tax Penalty) - cash receipt (14,809.81) Ceridian Tax Service (3,065.48) Use Tax Payable to be reversed in June SUB TOTAL (286,000.00) (138,000.00) (90,000.00) (208,000.00) (722,000.00) 41 ENDING BALANCE * (3,831,000.00) (3,831,000.00) (3,831,000.00) (4,117,000.00) (4,117,000.00) (4,117,000.00) (4,255,000.00) (4,255,000.00) (4,255,000.00) (4,345,000.00) (4,345,000.00) (4,345,000.00) (4,553,000.00) * At the end of each quarter reserve is set based on 2 X the prior 12 months average for FMH and Delta Dental claims plus 4 week average Walgreens/ESI Claims. 47 This account number represents reserve recorded by the Company to cover the payment of medical and dental claims incurred but not reported since the Company is self-insured. 48 Prepared by: Karen Medford/Benefits Accounting st Quarter nd Quarter FMH 4/15-3/16 19,995, /12 *2 = 3,332, FMH 7/15-6/16 20,632, /12 *2 = 3,438, Delta Dental 4/15-3/16 2,104, /12 *2 = 350, Delta Dental 7/15-6/16 2,089, /12 *2 = 348, ESI 3/15-2/16 5,633, /52 *4 = 433, ESI 6/15-5/16 6,081, /52 *4 = 467, ,116, ,254, Set reserve at 4,117,000 Set reserve at 4,255, ation % D ation % Med Reserve True-up 2nd Qtr 61 GL BU , GL BU (720,482.59) (904,350.26) 62 GL BU , GL BU (435,433.64) (546,556.63) , (1,155,916.23) (1,450,906.89) rd Quarter th Quarter FMH 10/15-09/16 21,270, /12 *2 = 3,545, FMH 01/16-12/16 22,662, /12 *2 = 3,777, Delta Dental 10/15-09/16 2,056, /12 *2 = 342, Delta Dental 01/16-12/16 2,071, /12 *2 = 345, ESI 09/15-08/16 5,947, /52 *4 = 457, ESI 12/15-11/16 5,599, /52 *4 = 430, ,345, ,553, Set reserve at 4,345,000 Set reserve at 4,553, ation % ation % 75 GL BU (1,035,738.18) A GL BU (1,738,740.20) 76 GL BU (625,962.74) B GL BU (1,050,831.75) 77 (1,661,700.92) C (2,789,571.95) Refer to S:\FinSvcs\BENACCT\WRI\Monthly Reporting\JEs\2010\JE Medical Reserve Average Claims.xls for the quarterly reserve computations shown in this section. Prepared by: Tom Steinmetz/Benefits Accounting Prepared by Karen Medford/Benefits Accounting 1 7/18/ :06 AM

62

63

64

65 KEPCO-Kansas Electric Power Coop. Inc. Transmission Formula Rate June 2017 True-Up (2016 Actuals, 2018 Projection) Westar 08/07/2017 Page 1of 1 Data Request: KEPCo TFR 2.22::Employee Pensions and Benefits (WES) 2.22 In review of the total A&G expense shown on Actual Gross Rev, p. 2, l. 3, and specifically FERC Acct. 926 Employees Pensions and Benefits reflected on the WES 2016 FF1, p. 323, l. 187, please provide a detailed explanation for the $3,436,454 decrease in the expense from $45,836,640 to $42,400,186 for 2015 to 2016 respectively. Response: See response and supporting files in KEPCo TFR 2.21::Employee Pensions and Benefits for WEN, as it is also applicable to WES. In addition, the overall pension and benefits expense for WES decreased related to its 47% share of Wolf Creek Nuclear Operating Company (WCN) pension. The WCN pension decreased due to an increase in the discount rate, mortality table updates and contributions to the plan, which reduced net pension expense. The WCN pension expense is only attributable to WES. Refer to the attached report provided by the Company's actuary related to the valuation of the WCN pension plan. Prepared by or Under Supervision of: Dick, Miranda Verification of Response I have read the foregoing Data Request and Answer(s) thereto and find answer(s) to be true, accurate, full and complete and contain no material misrepresentations or omissions to the best of my knowledge and belief; and I will disclose to any matter subsequently discovered which affects the accuracy or completeness of the answer(s) to this Data Request. Signed by: Dated:

66

67

68