Review of KCC Rate Order

December 30, 2005

Review of KCC Rate Order

December 30, 2005

Exhibit 99.2

2

Forward-Looking Statements Disclosure

Forward-Looking Statements Disclosure

The

following

presentation

contains

some

“forward-looking

statements”

with

respect

to

Westar

Energy,

Inc.’s

(“Westar”)

future

plans,

expectations

and

goals,

including

management’s

expectations

with

respect

to

future

operating

results

and

dividend

growth.  The Private Securities Litigation Reform Act of 1995 has established that

these statements qualify for safe harbors from liability.

Although we believe that the expectations and goals reflected in

such forward-looking

statements are based on reasonable assumptions, all forward- looking statements

involve risk and uncertainty. Therefore, actual results could vary materially from what

we

expect.

Please

review

our

quarterly

report

on

Form

10-Q

for

the

period

ended

September 30, 2005 for important risk factors that could cause results to differ

materially

from

those

in

any

such

forward-looking

statements.

Any

forward-looking

statement speaks only as of the date such statement was made, and we do not

undertake

any

obligation

to

update

any

forward-looking

statement

to

reflect

events

or

circumstances after the date on which such statement was made except as required

by applicable laws or regulations.

The

following

presentation

contains

some

“forward-looking

statements”

with

respect

to

Westar

Energy,

Inc.’s

(“Westar”)

future

plans,

expectations

and

goals,

including

management’s

expectations

with

respect

to

future

operating

results

and

dividend

growth.  The Private Securities Litigation Reform Act of 1995 has established that

these statements qualify for safe harbors from liability.

Although we believe that the expectations and goals reflected in

such forward-looking

statements are based on reasonable assumptions, all forward-looking statements

involve risk and uncertainty. Therefore, actual results could vary materially from what

we

expect.

Please

review

our

quarterly

report

on

Form

10-Q

for

the

period

ended

September 30, 2005 for important risk factors that could cause results to differ

materially

from

those

in

any

such

forward-looking

statements.

Any

forward-looking

statement speaks only as of the date such statement was made, and we do not

undertake

any

obligation

to

update

any

forward-looking

statement

to

reflect

events

or

circumstances after the date on which such statement was made except as required

by applicable laws or regulations.

3

Contents

Contents

Page

2005 Rate Review Overview

4

Kansas Retail Case

5

Background

6

2005 Rate Case Components

7

KCC Order

8

Estimated Impact of KCC Order

9

Key Calculations in Retail Case

10

Key Rate Components

11

Next Steps in Retail Case

12

FERC Transmission Case

13

2005 FERC Filing

14

FERC Formula Transmission Rate

15

Page

2005 Rate Review Overview

4

Kansas Retail Case

5

Background

6

2005 Rate Case Components

7

KCC Order

8

Estimated Impact of KCC Order

9

Key Calculations in Retail Case

10

Key Rate Components

11

Next Steps in Retail Case

12

FERC Transmission Case

13

2005 FERC Filing

14

FERC Formula Transmission Rate

15

4

2005 Rate Review Overview

2005 Rate Review Overview

On May 2, Westar filed two rate applications

Retail rate review with the Kansas Corporation Commission (KCC)

Docket 05-WSEE-981-RTS

FERC formula transmission rate

Docket ER05-925-000

Effective dates for applications

By Kansas statute, order was issued by Dec. 28, 2005

FERC transmission rate in effect Dec. 1, 2005 subject to refund

Simultaneous filing allows opportunities for retail and transmission rates to

be effective at same time

On May 2, Westar filed two rate applications

Retail rate review with the Kansas Corporation Commission (KCC)

Docket 05-WSEE-981-RTS

FERC formula transmission rate

Docket ER05-925-000

Effective dates for applications

By Kansas statute, order was issued by Dec. 28, 2005

FERC transmission rate in effect Dec. 1, 2005 subject to refund

Simultaneous filing allows opportunities for retail and transmission rates to

be effective at same time

Kansas Retail Case

Kansas Retail Case

6

Background

Background

On May 2, 2005, Westar filed for $84 million increase in retail rates

North   $48 million

9.3%

South

36

million

6.3%

$84 million     7.7%

As adjusted and corrected, overall requested increase remained at

$84 million, but adjustments affected the individual rate areas

North

$56 million   10.9%

South

28

million 

5.0%

$84 million     7.8%

On May 2, 2005, Westar filed for $84 million increase in retail rates

North   $48 million

9.3%

South

36

million

6.3%

$84 million     7.7%

As adjusted and corrected, overall requested increase remained at

$84 million, but adjustments affected the individual rate areas

North

$56 million   10.9%

South

28

million 

5.0%

$84 million     7.8%

7

2005 Key Rate Case Components

2005 Key Rate Case Components

Fuel adjustment clause

Environmental cost recovery rider

Transmission delivery charge (unbundled FERC formula rate)

Increase

depreciation

rates

by

$29

million

Storm recovery of $49 million

Incentive structure for wholesale margin sharing

Levelize

regulatory COLI credits over 60 year Wolf Creek life

Asked KCC to reconsider two controversial adjustments

ordered in 2001 rate case

Unamortized gain on LaCygne sale-leaseback transaction

Imputed deferred income taxes associated with 1992 merger

Fuel adjustment clause

Environmental cost recovery rider

Transmission delivery charge (unbundled FERC formula rate)

Increase

depreciation

rates

by

$29

million

Storm recovery of $49 million

Incentive structure for wholesale margin sharing

Levelize

regulatory COLI credits over 60 year Wolf Creek life

Asked KCC to reconsider two controversial adjustments

ordered in 2001 rate case

Unamortized gain on LaCygne sale-leaseback transaction

Imputed deferred income taxes associated with 1992 merger

8

KCC Order

KCC Order

Order indicated slight increase in overall retail rates

North

$24.2  million

4.7%

South        (21.2)

million   (3.7%)

Total       $  3.0

million    0.3%

Expect use of more recent three-year average of wholesale

margins

to

result

in

a

slight

decrease

in

overall

retail

rates

Other key elements

Approved fuel adjustment clause

Approved environmental cost recovery rider

Approved transmission delivery charge

Approved Westar’s depreciation increase

Accepted Westar’s position on LaCygne gain

Rejected Westar’s proposed wholesale margin sharing

Rejected requested changes in COLI rate making treatment

Rejected Westar’s position on merger savings

Order indicated slight increase in overall retail rates

North

$24.2  million

4.7%

South        (21.2)

million   (3.7%)

Total       $  3.0

million    0.3%

Expect use of more recent three-year average of wholesale

margins

to

result

in

a

slight

decrease

in

overall

retail

rates

Other key elements

Approved fuel adjustment clause

Approved environmental cost recovery rider

Approved transmission delivery charge

Approved Westar’s depreciation increase

Accepted Westar’s position on LaCygne gain

Rejected Westar’s proposed wholesale margin sharing

Rejected requested changes in COLI rate making treatment

Rejected Westar’s position on merger savings

9

Estimated Impact of KCC Order

KCC Order*

Westar Energy requested rate increase

84

$           

ROE recommendation

(30)

10.00%

Wholesale margin sharing

(11)

LaCygne 2 unamortized gain

0

1992 merger savings

(11)

COLI

(11)

Depreciation expense

0

Post employment benefits amortization

(6)

Ice storm costs

0

Other (+/-)

(12)

Recommended Adjustments

(81)

Indicated rate increase

3

$             

* Excludes any revenues associated with higher fuel costs that may be reflected in fuel adjustment clause

10

Key Calculations in Retail Case

Key Calculations in Retail Case

KCC jurisdictional rate base of $2.2 billion

Excludes $320 million FERC jurisdictional rate base

Allowed rate of return –

summarized

KCC jurisdictional rate base of $2.2 billion

Excludes $320 million FERC jurisdictional rate base

Allowed rate of return –

summarized

% of

Capital

Component

Cost

WACC

Common equity

44.59%

x

10.00%

=

4.46%

Post 1970 ITC

2.31%

x

7.89%

=

0.18%

Preferred Stock

0.69%

x

4.55%

=

0.03%

Long Term Debt

52.41%

x

6.14%

=

3.22%

   Weighted cost of capital

7.89%

11

Key Rate Components

Key Rate Components

Fuel adjustment clause

Expect to set rates based on forecasted

costs with periodic true-up

Environmental cost recovery rider

Adopted Westar recommendation for capital recovery only

Proceeds from sale of emissions allowances returned to customers

through fuel clause

Transmission delivery charge

Adopted Westar/KCC Staff joint recommendation

Wholesale margin sharing

Adopted Staff position to refund 100% of market-based wholesale

(asset-based) margins based on three-year rolling average

Energy marketing (non-asset) margins remain outside of

ratemaking

Fuel adjustment clause

Expect to set rates based on forecasted

costs with periodic true-up

Environmental cost recovery rider

Adopted Westar recommendation for capital recovery only

Proceeds from sale of emissions allowances returned to customers

through fuel clause

Transmission delivery charge

Adopted Westar/KCC Staff joint recommendation

Wholesale margin sharing

Adopted Staff position to refund 100% of market-based wholesale

(asset-based) margins based on three-year rolling average

Energy marketing (non-asset) margins remain outside of

ratemaking

12

Next Steps in Retail Case

Next Steps in Retail Case

Full review of all elements in the order

Any party can petition the Commission with a request for

reconsideration by January 16

Commission has 30 days to consider petitions

Plan to implement new tariffs approximately February 1

Full review of all elements in the order

Any party can petition the Commission with a request for

reconsideration by January 16

Commission has 30 days to consider petitions

Plan to implement new tariffs approximately February 1

FERC Transmission Case

Formula Rate Filing

FERC Transmission Case

Formula Rate Filing

14

2005 FERC Filing

2005 FERC Filing

FERC transmission rate base approximately $320 million

Revenue requirement of $77 million

Adopt a formula rate approach to:

Establish current rates for transmission service

Keep rates current with annual adjustment

Requested 12% ROE (11.5% plus 0.5% adder)

Westar –

member SPP Regional Transmission Organization

Proposed rates accepted for filing

Suspended for five months

Became effective December 1, 2005, subject to refund

Case assigned to settlement judge

Next settlement hearing scheduled for January 12, 2006

FERC transmission rate base approximately $320 million

Revenue requirement of $77 million

Adopt a formula rate approach to:

Establish current rates for transmission service

Keep rates current with annual adjustment

Requested 12% ROE (11.5% plus 0.5% adder)

Westar –

member SPP Regional Transmission Organization

Proposed rates accepted for filing

Suspended for five months

Became effective December 1, 2005, subject to refund

Case assigned to settlement judge

Next settlement hearing scheduled for January 12, 2006

15

FERC Formula Transmission Rate

FERC Formula Transmission Rate

Advantages:

Reduce regulatory lag

Potential for incentive ROE for RTO participation

More certainty for cost recovery of transmission system

improvements

Advantages:

Reduce regulatory lag

Potential for incentive ROE for RTO participation

More certainty for cost recovery of transmission system

improvements

Westar Energy

Investor Contact

Westar Energy

Investor Contact

Bruce Burns

Director Investor Relations

785-575-8227

bruce_burns@wr.com

Bruce Burns

Director Investor Relations

785-575-8227

bruce_burns@wr.com