August 7 2014 Agenda Introduction Disclosure Meeting purpose Discuss the Regulatory Timeline Review the 2013 Annual TrueUp results actual to forecast comparison discuss drivers Discuss next steps ID: 1042798
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1. Great River Energy2013 Annual True-Up MeetingAugust 7, 2014
2. AgendaIntroductionDisclosureMeeting purposeDiscuss the Regulatory TimelineReview the 2013 Annual True-Up resultsactual to forecast comparisondiscuss driversDiscuss next stepsQuestion / Answer
3. DisclosureAll figures in this document are preliminary and subject to change. Per the revised Formula Rate Protocols, figures will be finalized after the Information Exchange, Challenge Procedures, and MISO’s review are complete1. 1 Awaiting FERC’s final decision on Docket ER13-2379 on FERC’s investigation into MISO Formula Rate Protocols
4. Meeting Purpose The revised Formula Rate Protocols require GRE to hold an Annual True-Up Meeting among Interested Parties between the Publication Date (June 1) and September 1Compare actual 2013 values against projections on which the 2013 rates were based Review the Annual True-Up Adjustment calculation
5. Formula Rate Protocol Timeline
6. 2013 True-Up Adjustment Overview Actual Projected DifferenceNet Revenue Requirement $99,203,840 $96,975,134 $2,228,705 (a)Divisor True-Up Divisor 2,012,415 2,023,751 11,336 Projected Rate ($/kW/Yr) $47.919 True-Up (Divisor Difference x Projected Rate) $543,204 (b) Interest $79,442 (c)Total 2013 True-Up Adjustment (Under Recovery) $2,851,352 (a+b+c)
7. 2013 ATTR Summary Projected ATRRActual ATRR
8. Revenue Requirement OverviewProjected 2013 Net Revenue Requirement $96,975,134 Actual to Projected Differences: Return $963,753 O&M Expense $(963,019) Attachment GG Adjustment $(165,196) Attachment MM Adjustment $935,421 Revenue Credits $1,457,747Actual 2013 Net Revenue Requirement $99,203,840Overall Difference $2,228,705
9. Return OverviewProjected 2013 Rate Base $671,736,732 Actual to Projected Differences: Net Plant $(13,839,565) Construction Work In Progress $2,306,365 Adjustments to Rate Base * $333,388 Land Held for Future Use $0 Working Capital $389,971Actual 2013 Rate Base $660,260,116Overall Difference $(11,476,617)*offset to Rate Base
10. Return OverviewActual Return % D/E Ratio WeightedLTD 85.05% 4.77% (a)Equity 14.95% 1.85% (b)Return 6.63% (a+b)Projected Return % D/E Ratio WeightedLTD 86.06% 4.70% (a)Equity 13.94% 1.73% (b)Return 6.42% (a+b)Overall Difference = 0.2012%
11. Return OverviewRate Base Actual to Projected Difference $(11,476,617) Actual Return Rate 6.63% $(760,342) (a)Return Rate Projected Rate Base $671,736,732 Actual to Projected Difference in Return % 0.2012% $1,351,390 (b)Overall Difference in Return $591,048 (a+b)
12. Operating Expense OverviewProjected 2013 Operating Expense $78,815,432 Actual to Projected Differences: O&M (includes A&G) $(755,842) Depreciation Expense $(332,354) Taxes Other Than Income Taxes $125,177 Income Taxes $0Actual 2013 Operating Expense $77,852,413Overall Difference $(963,019)
13. Attachment GG & MM OverviewAttachment GGProjected ATRR $17,872,720Actual to Projected Differences:Annual Expense Charge $64,038Annual Return Charge $199,605Depreciation Expense $(98,447)Actual ATRR $18,037,916Overall Difference $165,196Attachment MMProjected ATRR $5,998,423Actual to Projected Differences:Annual Expense Charge $(4,983)Annual Return Charge $(429,469)Depreciation Expense $(500,970)Actual ATRR $5,063,002Overall Difference $(935,421)
14. Revenue Credits OverviewProjected 2013 Revenue Credits $4,338,375 Actual to Projected Differences: Account 454 (Rent From Electric Property) $(629,236) Account 456 (Other Electric Revenues) $(828,511)Actual 2013 Revenue Credits $2,880,628Overall Difference $(1,457,747)
15. Next StepsInformation Exchange Procedures*Interested Parties have until December 1, 2014** to submit information requestsGRE shall make a good faith effort to respond within 15 business days of receipt of such requestAny information request should be submitted in writing to: Todd Butkowski (tbutkowski@GREnergy.com) andSeth Nelson (snelson@GREnergy.com)All questions and answers will be distributed by e-mail to the Interested Party who asked the question(s) and will be posted on the MISO website and OASIS * Awaiting FERC’s final decision on Docket ER13-2379 on FERC’s investigation into MISO Formula Rate Protocols ** If December 1 falls on a weekend or a holiday recognized by FERC, the deadline for submitting the request will be extended to the next business day
16. Questions?