FERC Approves Prairie Wind Transmission Request for Key Rate Components in New Ultra-High Capacity Line Project

• Press Release
• Source: Westar Energy
• On 5:32 pm EST, Thursday December 4, 2008

TOPEKA, KS--(MARKET WIRE)--Dec 4, 2008 -- Prairie Wind Transmission LLC today announced that the Federal Energy Regulatory Commission (FERC) has unanimously approved its request for key rate components in its proposal to build a 230-mile, 765-kilovolt (kV) transmission line extending from the Wichita area west to the Dodge City area and south-southwest to the Kansas-Oklahoma border from Medicine Lodge. Prairie Wind Transmission is a joint venture between Westar Energy, Inc. (NYSE:WR - News) and Electric Transmission America (ETA). ETA is a joint venture between wholly-owned subsidiaries of American Electric Power (NYSE:AEP - News) and MidAmerican Energy Holdings Company.

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FERC approved the following rate components:

 
--  A return on equity of 12.8 percent which includes incentive adders for
    participation in the Southwest Power Pool (SPP) and investing in new
    transmission facilities that will reduce the cost of electricity and
    promote the public interest by providing for the interconnection and
    delivery of renewable generation in the SPP;

--  The inclusion of 100 percent of construction work in progress (CWIP)
    in rate base during the development and construction period of the project
    after the formula rate becomes effective;

--  The recovery of prudently-incurred investment costs in the project in
    the event that the project must be abandoned for reasons outside the
    company's control;

--  And, regulatory asset treatment of pre-commercial expenses not
    included in CWIP that have been incurred to date, as well as expenses
    incurred going forward until the formula rate becomes effective.

FERC set aside for hearing the establishment of the formula rate and associated protocols.

"This is a significant milestone in our plan to build the first 765-kV line west of the Mississippi River," said Kelly Harrison, president, Prairie Wind Transmission, and vice president, transmission operations and environmental services, Westar Energy. "The new line will provide reasonably priced and reliable electricity to customers, better access to renewable generation, significant environmental benefits and value to shareholders."

"FERC's unanimous approval makes it clear that it shares our vision for constructing an interstate transmission system in the SPP," said Lisa Barton, president, ETA.

Following the receipt of all necessary regulatory and cost allocation approvals, the new line is expected to be in service by the end of 2013.

For more information about Prairie Wind Transmission, please visit the Web site at http://www.prairiewindtransmission.com/.

Westar Energy, Inc. (NYSE:WR - News) is the largest electric utility in Kansas, providing electric service to about 675,000 customers in the state. Westar Energy has about 6,500 megawatts of electric generation capacity and operates and coordinates approximately 33,000 miles of electric distribution and transmission lines. For more information about Westar Energy, visit http://www.WestarEnergy.com.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.

MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms, MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide. These business platforms are Pacific Power, Rocky Mountain Power and PacifiCorp Energy, which comprise PacifiCorp; MidAmerican Energy Company; CE Electric UK; Northern Natural Gas Company; Kern River Gas Transmission Company; and CalEnergy. Information about MidAmerican is available at www.midamerican.com.