Utility’s Perspective OfFuture Transmission

Utility’s Perspective OfFuture Transmission

September 23, 2008September 23, 2008

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Key Operational Facts: ≈ 667,000 customers More than 6,100 MW of generation – 2006 reserve margin 12% 11,000 sq mile service territory 33,000 miles of T & D 2,100 employees Kansas retail market remains fully regulated

Key Operational Facts: ≈ 667,000 customers More than 6,100 MW of generation – 2006 reserve margin 12% 11,000 sq mile service territory 33,000 miles of T & D 2,100 employees Kansas retail market remains fully regulated

Topeka

Kansas

Vertically Integrated Kansas UtilityVertically Integrated Kansas Utility

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Westar’s TransmissionWestar’s Transmission

4300 miles of transmission > 60 kV

Member of Southwest Power Pool (SPP) SPP Transmission Tariff Member SPP Regional Entity Member for Reliability

2008 Transmission Construction budget - $150 million

Two Major 345 kV projects Wichita to Hutchinson to Salina 345 kV line Wichita to Oklahoma 345 kV line

4300 miles of transmission > 60 kV

Member of Southwest Power Pool (SPP) SPP Transmission Tariff Member SPP Regional Entity Member for Reliability

2008 Transmission Construction budget - $150 million

Two Major 345 kV projects Wichita to Hutchinson to Salina 345 kV line Wichita to Oklahoma 345 kV line

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Current Transmission ProjectsCurrent Transmission Projects

Wichita to Hutchinson Approximately 40 miles

Hutchinson to Salina Approximately 60 miles

Wichita to Oklahoma Approximately 50 miles

Other significant projects “inside regional footprint”

Wichita to Hutchinson Approximately 40 miles

Hutchinson to Salina Approximately 60 miles

Wichita to Oklahoma Approximately 50 miles

Other significant projects “inside regional footprint”

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Current Transmission ProjectsCurrent Transmission Projects

Wichita to Hutchinson to Salina 345 kV Project Wichita to Hutchison (Reno) line to be completed by the end

of 2008 Reno to Salina (Summit) line to be completed by the end of

2009

Wichita to Oklahoma 345 kV project Project to be completed by the end of 2010

These Projects eliminate two of the most highly active constraints in the SPP system

Wichita to Hutchinson to Salina 345 kV Project Wichita to Hutchison (Reno) line to be completed by the end

of 2008 Reno to Salina (Summit) line to be completed by the end of

2009

Wichita to Oklahoma 345 kV project Project to be completed by the end of 2010

These Projects eliminate two of the most highly active constraints in the SPP system

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Prairie Wind TransmissionPrairie Wind Transmission

Joint venture between Westar and Electric Transmission America (ETA)

ETA is owned 50/50 by AEP and Mid American

AEP is the only utility in nation that has 765kV in operation

AEP has designed, constructed and operated 765kV for almost 40 years

Joint venture between Westar and Electric Transmission America (ETA)

ETA is owned 50/50 by AEP and Mid American

AEP is the only utility in nation that has 765kV in operation

AEP has designed, constructed and operated 765kV for almost 40 years

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Prairie Wind TransmissionPrairie Wind Transmission

Prairie Wind was formed to design, construct and operate the first 765kV transmission west of the Mississippi

SPP’s consultant Quanta identified the Prairie Wind project as the logical first step in building a 765kV overlay in the SPP

Coupled with the Tallgrass Project announced by Oklahoma Gas & Electric and ETA, substantial progress will be made in realizing a transmission “interstate highway” in the SPP

Prairie Wind was formed to design, construct and operate the first 765kV transmission west of the Mississippi

SPP’s consultant Quanta identified the Prairie Wind project as the logical first step in building a 765kV overlay in the SPP

Coupled with the Tallgrass Project announced by Oklahoma Gas & Electric and ETA, substantial progress will be made in realizing a transmission “interstate highway” in the SPP

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Prairie Wind Prairie Wind TransmissioTransmissio

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Prairie Wind ProjectPrairie Wind Project

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Benefits of Prairie Wind ProjectBenefits of Prairie Wind Project

Enables substantial renewable wind development in western Kansas

Provides substantial economic development benefits to Kansas via jobs for construction of line and wind farms and royalty payments to landowners

Enables broader opportunities for energy markets in Kansas thereby lowering power supply costs

Substantial environmental benefits

Lower voltage lines will be unloaded

Using 765kV technology results in substantially lower losses on the transmission system and improved reliability

Enables substantial renewable wind development in western Kansas

Provides substantial economic development benefits to Kansas via jobs for construction of line and wind farms and royalty payments to landowners

Enables broader opportunities for energy markets in Kansas thereby lowering power supply costs

Substantial environmental benefits

Lower voltage lines will be unloaded

Using 765kV technology results in substantially lower losses on the transmission system and improved reliability

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765-kV Value Proposition765-kV Value Proposition

Advanced six-conductor bundles for higher capacity, lower line losses and reduced noise

Fiber-optic shield wires for better protection and control

Wide-area monitoring, control, and remote diagnostics

Independent-phase operation for improved line performance

Line design and right-of-way usage for least environmental impact

Advanced six-conductor bundles for higher capacity, lower line losses and reduced noise

Fiber-optic shield wires for better protection and control

Wide-area monitoring, control, and remote diagnostics

Independent-phase operation for improved line performance

Line design and right-of-way usage for least environmental impact

Advanced Technology Advanced Technology Environmental Stewardship Environmental Stewardship

More capacity on less land

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