Exhibit



	Three Months Ended June 30,
	2017			2016			Change			% Change
	(Dollars in Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	188,142		$	202,838		$	(14,696	)	(7.2	)
Commercial	182,110			188,197			(6,087		)	(3.2	)
Industrial	107,990			108,004			(14		)	—
Other retail	(10,092		)	(16,502		)	6,410			38.8
Total Retail Revenues	468,150			482,537			(14,387		)	(3.0	)
Wholesale	63,044			66,687			(3,643		)	(5.5	)
Transmission	70,152			66,620			3,532			5.3
Other	7,975			5,604			2,371			42.3
Total Revenues	609,321			621,448			(12,127		)	(2.0	)
OPERATING EXPENSES:
Fuel and purchased power	111,790			118,630			(6,840		)	(5.8	)
SPP network transmission costs	61,763			55,227			6,536			11.8
Operating and maintenance	87,158			85,619			1,539			1.8
Depreciation and amortization	94,029			84,226			9,803			11.6
Selling, general and administrative	57,579			75,724			(18,145		)	(24.0	)
Taxes other than income tax	41,890			48,407			(6,517		)	(13.5	)
Total Operating Expenses	454,209			467,833			(13,624		)	(2.9	)
INCOME FROM OPERATIONS	155,112			153,615			1,497			1.0
OTHER INCOME (EXPENSE):
Investment earnings	2,636			2,280			356			15.6
Other income	523			3,382			(2,859		)	(84.5	)
Other expense	(2,647		)	(2,908		)	261			9.0
Total Other Income	512			2,754			(2,242		)	(81.4	)
Interest expense	43,679			39,683			3,996			10.1
INCOME BEFORE INCOME TAXES	111,945			116,686			(4,741		)	(4.1	)
Income tax expense	35,906			40,542			(4,636		)	(11.4	)
NET INCOME	76,039			76,144			(105		)	(0.1	)
Less: Net income attributable to noncontrolling interests	3,974			3,804			170			4.5
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	72,065		$	72,340		$	(275	)	(0.4	)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
Basic earnings per common share	$	0.50		$	0.51		$	(0.01	)	(2.0	)
Diluted earnings per common share	$	0.50		$	0.51		$	(0.01	)	(2.0	)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
Basic	142,466			142,034			432			0.3
Diluted	142,596			142,497			99			0.1
DIVIDENDS DECLARED PER COMMON SHARE	$	0.40		$	0.38		$	0.02		5.3
Effective income tax rate	32		%	35		%



	Six Months Ended June 30,
	2017			2016			Change			% Change
	(Dollars in Thousands, Except Per Share Amounts)
REVENUES:
Residential	$	364,310		$	382,128		$	(17,818	)	(4.7	)
Commercial	337,817			353,870			(16,053		)	(4.5	)
Industrial	206,506			208,702			(2,196		)	(1.1	)
Other retail	(22,440		)	(30,884		)	8,444			27.3
Total Retail Revenues	886,193			913,816			(27,623		)	(3.0	)
Wholesale	140,411			134,099			6,312			4.7
Transmission	139,593			130,535			9,058			6.9
Other	15,698			12,448			3,250			26.1
Total Revenues	1,181,895			1,190,898			(9,003		)	(0.8	)
OPERATING EXPENSES:
Fuel and purchased power	225,645			218,688			6,957			3.2
SPP network transmission costs	122,437			115,987			6,450			5.6
Operating and maintenance	168,356			163,377			4,979			3.0
Depreciation and amortization	182,655			167,866			14,789			8.8
Selling, general and administrative	116,735			132,179			(15,444		)	(11.7	)
Taxes other than income tax	84,606			97,375			(12,769		)	(13.1	)
Total Operating Expenses	900,434			895,472			4,962			0.6
INCOME FROM OPERATIONS	281,461			295,426			(13,965		)	(4.7	)
OTHER INCOME (EXPENSE):
Investment earnings	5,790			4,296			1,494			34.8
Other income	1,823			12,860			(11,037		)	(85.8	)
Other expense	(7,963		)	(8,451		)	488			5.8
Total Other Income	(350		)	8,705			(9,055		)	(104.0	)
Interest expense	84,774			80,114			4,660			5.8
INCOME BEFORE INCOME TAXES	196,337			224,017			(27,680		)	(12.4	)
Income tax expense	56,816			79,165			(22,349		)	(28.2	)
NET INCOME	139,521			144,852			(5,331		)	(3.7	)
Less: Net income attributable to noncontrolling interests	7,795			6,927			868			12.5
NET INCOME ATTRIBUTABLE TO WESTAR ENERGY, INC.	$	131,726		$	137,925		$	(6,199	)	(4.5	)
BASIC AND DILUTED EARNINGS PER AVERAGE COMMON SHARE OUTSTANDING ATTRIBUTABLE TO WESTAR ENERGY, INC. (See 10-Q Note 2):
Basic earnings per common share	$	0.92		$	0.97		$	(0.05	)	(5.2	)
Diluted earnings per common share	$	0.92		$	0.97		$	(0.05	)	(5.2	)
AVERAGE EQUIVALENT COMMON SHARES OUTSTANDING (in thousands):
Basic	142,451			142,013			438			0.3
Diluted	142,579			142,361			218			0.2
DIVIDENDS DECLARED PER COMMON SHARE	$	0.80		$	0.76		$	0.04		5.3
Effective income tax rate	29		%	35		%



	June 30, 2017		December 31, 2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,210	$	3,066
Accounts receivable, net of allowance for doubtful accounts of $5,697 and $6,667, respectively	274,426		288,579
Fuel inventory and supplies	302,696		300,125
Taxes receivable	—		13,000
Prepaid expenses	19,077		16,528
Regulatory assets	110,179		117,383
Other	30,638		29,701
Total Current Assets	740,226		768,382
PROPERTY, PLANT AND EQUIPMENT, NET	9,406,054		9,248,359
PROPERTY, PLANT AND EQUIPMENT OF VARIABLE INTEREST ENTITIES, NET	252,737		257,904
OTHER ASSETS:
Regulatory assets	750,888		762,479
Nuclear decommissioning trust	220,031		200,122
Other	226,214		249,828
Total Other Assets	1,197,133		1,212,429
TOTAL ASSETS	$	11,596,150	$	11,487,074
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	—	$	125,000
Current maturities of long-term debt of variable interest entities	28,538		26,842
Short-term debt	329,200		366,700
Accounts payable	139,628		220,522
Accrued dividends	53,743		52,885
Accrued taxes	89,742		85,729
Accrued interest	45,124		72,519
Regulatory liabilities	11,903		15,760
Other	76,294		81,236
Total Current Liabilities	774,172		1,047,193
LONG-TERM LIABILITIES:
Long-term debt, net	3,686,180		3,388,670
Long-term debt of variable interest entities, net	82,653		111,209
Deferred income taxes	1,794,177		1,752,776
Unamortized investment tax credits	209,283		210,654
Regulatory liabilities	230,355		223,693
Accrued employee benefits	511,073		512,412
Asset retirement obligations	368,233		323,951
Other	85,145		83,326
Total Long-Term Liabilities	6,967,099		6,606,691
COMMITMENTS AND CONTINGENCIES (See 10-Q Notes 11 and 13)
EQUITY:
Westar Energy, Inc. Shareholders’ Equity:
Common stock, par value $5 per share; authorized 275,000,000 shares; issued and outstanding 142,093,387 shares and 141,791,153 shares, respective to each date	710,467		708,956
Paid-in capital	2,019,815		2,018,317
Retained earnings	1,095,247		1,078,602
Total Westar Energy, Inc. Shareholders’ Equity	3,825,529		3,805,875
Noncontrolling Interests	29,350		27,315
Total Equity	3,854,879		3,833,190
TOTAL LIABILITIES AND EQUITY	$	11,596,150	$	11,487,074



	Six Months Ended June 30,
	2017			2016
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income	$	139,521		$	144,852
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	182,655			167,866
Amortization of nuclear fuel	15,948			16,831
Amortization of deferred regulatory gain from sale leaseback	(2,748		)	(2,748		)
Amortization of corporate-owned life insurance	8,920			8,819
Non-cash compensation	4,613			4,778
Net deferred income taxes and credits	53,852			75,334
Allowance for equity funds used during construction	(773		)	(5,247		)
Changes in working capital items:
Accounts receivable	14,154			(40,555		)
Fuel inventory and supplies	(2,262		)	2,140
Prepaid expenses and other current assets	39,167			7,126
Accounts payable	(20,012		)	(21,364		)
Accrued taxes	11,019			16,272
Other current liabilities	(103,316		)	(62,434		)
Changes in other assets	14,891			1,848
Changes in other liabilities	7,695			15,163
Cash Flows from Operating Activities	363,324			328,681
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment	(383,627		)	(503,631		)
Purchase of securities - trusts	(12,140		)	(39,603		)
Sale of securities - trusts	13,538			41,201
Investment in corporate-owned life insurance	(13,875		)	(14,648		)
Proceeds from investment in corporate-owned life insurance	185			24,171
Investment in affiliated company	—			(655		)
Other investing activities	(3,199		)	(2,798		)
Cash Flows used in Investing Activities	(399,118		)	(495,963		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net	(37,632		)	(73,300		)
Proceeds from long-term debt	296,296			396,577
Proceeds from long-term debt of variable interest entities	—			162,048
Retirements of long-term debt	(125,000		)	(50,000		)
Retirements of long-term debt of variable interest entities	(26,840		)	(190,355		)
Repayment of capital leases	(1,663		)	(401		)
Borrowings against cash surrender value of corporate-owned life insurance	52,302			54,910
Repayment of borrowings against cash surrender value of corporate-owned life insurance	—			(22,921		)
Issuance of common stock	659			1,354
Distributions to shareholders of noncontrolling interests	(5,760		)	(2,551		)
Cash dividends paid	(109,418		)	(101,137		)
Other financing activities	(7,006		)	(4,960		)
Cash Flows from Financing Activities	35,938			169,264
NET INCREASE IN CASH AND CASH EQUIVALENTS	144			1,982
CASH AND CASH EQUIVALENTS:
Beginning of period	3,066			3,231
End of period	$	3,210		$	5,213

Earnings Variances

Change

($ per share)

(Dollars in Thousands)

($ per share)

June 30, 2016 basic earnings attributable to common stock

72,340

0.51

Favorable/(Unfavorable)

Gross Margin

(11,823

)

Operating and maintenance

(1,539

)

Depreciation and amortization

(9,803

)

Selling, general and administrative

18,145

Taxes other than income tax

6,517

Other income (expense)

(2,242

)

Interest expense

(3,996

)

Income tax expense

4,636

Net income attributable to noncontrolling interests

(170

)

Change in shares outstanding

(0.01

)

June 30, 2017 basic earnings attributable to common stock

72,065

0.50

Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)

Due primarily to lower residential and commercial sales because of milder weather in 2017

Due primarily to: higher operating and maintenance costs at coal fired plants mainly from scheduled outages -- ($3.6M); higher operating expense due to start of Western Plains Wind Farm -- ($1.3M); partially offset by a decrease in nuclear operating and maintenance costs due primarily to receipt of proceeds from a legal settlement at Wolf Creek -- $4.6M

Due principally to property additions at Western Plains Wind Farm in March 2017

Due primarily to: decrease in merger-related expense -- $7.5M; and decrease in employee benefit costs attributable partially to having fewer employees -- $4.9M

Due primarily to decreased property tax amortization expense that is largely offset by decreased prices --

$6.7M

Due primarily to a decrease in equity AFUDC -- ($2.8M)

Due primarily to: an increase in interest expense of long-term debt from issuances of FMBs during June 2016 -- ($2.8M); and a decrease in debt AFUDC -- ($1.4M)

Due primarily to an increase in tax benefits from production tax credits from Western Plains Wind Farm

YTD June 2017 vs. 2016

Earnings Variances

Change

($ per share)

(Dollars in Thousands)

($ per share)

June 30, 2016 basic earnings attributable to common stock

137,925

0.97

Favorable/(Unfavorable)

Gross Margin

(22,410

)

Operating and maintenance

(4,979

)

Depreciation and amortization

(14,789

)

Selling, general and administrative

15,444

Taxes other than income tax

12,769

Other income (expense)

(9,055

)

Interest expense

(4,660

)

Income tax expense

22,349

Net income attributable to noncontrolling interests

(868

)

Change in shares outstanding

(0.01

)

June 30, 2017 basic earnings attributable to common stock

131,726

0.92

Major factors influencing the period to period change in EPS -- Favorable/(Unfavorable)

Due primarily to lower residential and commercial sales because of milder weather in 2017 and one less calendar day due to 2016 being a leap year

Due primarily to: higher distribution maintenance expense -- ($5.6M); higher operating and maintenance costs at coal fired plants due primarily to scheduled outage -- ($3.1M); higher operating expense due to start of Western Plains Wind Farm -- ($1.7M); partially offset by a decrease in nuclear operating and maintenance costs due primarily to receipt of proceeds from a legal settlement at Wolf Creek -- $6.0M

Due principally to property additions at Western Plains Wind Farm in March 2017

Due primarily to: decrease in merger-related expense -- $7.1M; and decrease in employee benefit costs attributable partially to having fewer employees -- $3.1M

Due primarily to decreased property tax amortization expense that is largely offset by decreased prices --

$13.4M

Due primarily to: lower COLI benefit -- ($6.6M); and a decrease in equity AFUDC -- ($4.5M)

Due primarily to: an increase in interest expense of long-term debt from the issuances of FMBs during June 2016 -- ($4.2M); and a decrease in debt AFUDC -- ($1.6M)

Due primarily to lower income before income taxes and increases in tax benefits from production tax credits from Western Plains Wind Farm



Supplemental Data	Three Months Ended June 30,
	2017			2016			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	188,142		$	202,838		$	(14,696	)	(7.2	)
Commercial	182,110			188,197			(6,087		)	(3.2	)
Industrial	107,990			108,004			(14		)	—
Other retail	5,706			4,013			1,693			42.2
Provision for rate refunds	(15,798		)	(20,515		)	4,717			23.0
Total Retail Revenues	468,150			482,537			(14,387		)	(3.0	)
Tariff-based wholesale	53,332			56,260			(2,928		)	(5.2	)
Market-based wholesale	9,712			10,427			(715		)	(6.9	)
Transmission	70,152			66,620			3,532			5.3
Other	7,975			5,604			2,371			42.3
Total Revenues	$	609,321		$	621,448		$	(12,127	)	(2.0	)


Electricity Sales	(Thousands of MWh)
Residential	1,393			1,492			(99		)	(6.6	)
Commercial	1,814			1,875			(61		)	(3.3	)
Industrial	1,422			1,391			31			2.2
Other retail	25			19			6			31.6
Total Retail	4,654			4,777			(123		)	(2.6	)
Tariff-based wholesale	793			915			(122		)	(13.3	)
Market-based wholesale	1,200			781			419			53.6
Total wholesale	1,993			1,696			297			17.5
Total Electricity Sales	6,647			6,473			174			2.7

	(Dollars per MWh)
Total retail	$	100.59		$	101.01		$	(0.42	)	(0.4	)
Tariff-based wholesale	$	67.25		$	61.49		$	5.76		9.4
Market-based wholesale	$	8.09		$	13.35		$	(5.26	)	(39.4	)


Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	79,595		$	91,980		$	(12,385	)	(13.5	)
Purchased power	42,815			34,071			8,744			25.7
Subtotal	122,410			126,051			(3,641		)	(2.9	)
RECA recovery and other	(10,620		)	(7,421		)	(3,199		)	(43.1	)
Total fuel and purchased power expense	$	111,790		$	118,630		$	(6,840	)	(5.8	)

Electricity Supply	(Thousands of MWh)
Generated - Gas	372			472			(100		)	(21.2	)
Coal	2,966			3,373			(407		)	(12.1	)
Nuclear	1,246			1,242			4			0.3
Wind	402			100			302			302.0
Subtotal electricity generated	4,986			5,187			(201		)	(3.9	)
Purchased	2,055			1,455			600			41.2
Total Electricity Supply	7,041			6,642			399			6.0

	(Dollars per MWh)
Average cost of fuel used for generation	$	15.96		$	17.73		$	(1.77	)	(10.0	)
Average cost of purchased power	$	20.83		$	23.42		$	(2.59	)	(11.1	)
Average cost of fuel and purchased power	$	17.39		$	18.98		$	(1.59	)	(8.4	)


Degree Days				2016/
	2017			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	508			593			(85		)	(14.3	)
Actual compared to 20 year average	508			457			51			11.2
Heating
Actual compared to last year	310			285			25			8.8
Actual compared to 20 year average	310			386			(76		)	(19.7	)



Supplemental Data	Six Months Ended June 30,
	2017			2016			Change			% Change
Revenues	(Dollars In Thousands)
Residential	$	364,310		$	382,128		$	(17,818	)	(4.7	)
Commercial	337,817			353,870			(16,053		)	(4.5	)
Industrial	206,506			208,702			(2,196		)	(1.1	)
Other retail	9,643			7,854			1,789			22.8
Provision for rate refunds	(32,083		)	(38,738		)	6,655			17.2
Total Retail Revenues	886,193			913,816			(27,623		)	(3.0	)
Tariff-based wholesale	110,553			115,280			(4,727		)	(4.1	)
Market-based wholesale	29,858			18,819			11,039			58.7
Transmission	139,593			130,535			9,058			6.9
Other	15,698			12,448			3,250			26.1
Total Revenues	$	1,181,895		$	1,190,898		$	(9,003	)	(0.8	)


Electricity Sales	(Thousands of MWh)
Residential	2,747			2,889			(142		)	(4.9	)
Commercial	3,432			3,533			(101		)	(2.9	)
Industrial	2,756			2,693			63			2.3
Other retail	44			40			4			10.0
Total Retail	8,979			9,155			(176		)	(1.9	)
Tariff-based wholesale	1,802			1,910			(108		)	(5.7	)
Market-based wholesale	2,682			1,660			1,022			61.6
Total wholesale	4,484			3,570			914			25.6
Total Electricity Sales	13,463			12,725			738			5.8

	(Dollars per MWh)
Total retail	$	98.70		$	99.82		$	(1.12	)	(1.1	)
Tariff-based wholesale	$	61.35		$	60.36		$	0.99		1.6
Market-based wholesale	$	11.13		$	11.34		$	(0.21	)	(1.9	)


Fuel and Purchased Power	(Dollars In Thousands)
Fuel used for generation	$	169,442		$	173,619		$	(4,177	)	(2.4	)
Purchased power	86,267			72,901			13,366			18.3
Subtotal	255,709			246,520			9,189			3.7
RECA recovery and other	(30,064		)	(27,832		)	(2,232		)	(8.0	)
Total fuel and purchased power expense	$	225,645		$	218,688		$	6,957		3.2

Electricity Supply	(Thousands of MWh)
Generated - Gas	694			697			(3		)	(0.4	)
Coal	6,424			6,661			(237		)	(3.6	)
Nuclear	2,490			2,494			(4		)	(0.2	)
Wind	696			222			474			213.5
Subtotal electricity generated	10,304			10,074			230			2.3
Purchased	3,810			3,011			799			26.5
Total Electricity Supply	14,114			13,085			1,029			7.9

	(Dollars per MWh)
Average cost of fuel used for generation	$	16.44		$	17.23		$	(0.79	)	(4.6	)
Average cost of purchased power	$	22.64		$	24.21		$	(1.57	)	(6.5	)
Average cost of fuel and purchased power	$	18.12		$	18.84		$	(0.72	)	(3.8	)


Degree Days				2016/
	2017			20 yr Avg			Change			% Change
Cooling
Actual compared to last year	523			597			(74		)	(12.4	)
Actual compared to 20 year average	523			460			63			13.7
Heating
Actual compared to last year	2,210			2,367			(157		)	(6.6	)
Actual compared to 20 year average	2,210			2,814			(604		)	(21.5	)



Capitalization
		June 30, 2017					December 31, 2016
		(Dollars in Thousands)
Current maturities of long-term debt		$	—				$	125,000
Current maturities of long-term debt of VIEs		28,538					26,842
Long-term debt, net		3,686,180					3,388,670
Long-term debt of variable interest entities, net		82,653					111,209
Total long-term debt		3,797,371			49.6	%	3,651,721			48.8	%
Common equity		3,825,529			50.0	%	3,805,875			50.8	%
Noncontrolling interests		29,350			0.4	%	27,315			0.4	%
Total capitalization		$	7,652,250		100.0	%	$	7,484,911		100.0	%

GAAP Book value per share		$	26.92				$	26.84
Period end shares outstanding (in thousands)		142,093					141,791

Outstanding Long-Term Debt

	CUSIP	June 30, 2017					December 31, 2016
Westar Energy:		(Dollars in Thousands)
First Mortgage Bond series:
5.15% Series due January 2017	95709TAB6	$	—				$	125,000
5.10% Series due July 2020	95709TAD2	250,000					250,000
3.25% Series due December 2025	95709TAL4	250,000					250,000
2.55% Series due June 2026	95709TAN0	350,000					350,000
3.10% Series due April 2027	95709TAP5	300,000					—
4.125% Series due March 2042	95709TAH3	550,000					550,000
4.10% Series due April 2043	95709TAJ9	430,000					430,000
4.625% Series due September 2043	95709TAK6	250,000					250,000
4.25% Series due December 2045	95709TAM2	300,000					300,000
		2,680,000					2,505,000
Pollution control bond series:
Variable series due April 2032 (Wamego)	933623BN9	30,500					30,500
Variable series due April 2032 (St Marys)	792609AF6	45,000					45,000
		75,500					75,500
Total Westar Energy		2,755,500					2,580,500

KGE
First mortgage bond series:
6.70% Series due June 2019	485260BL6	300,000					300,000
6.15% Series due May 2023	485260B@1	50,000					50,000
6.53% Series due December 2037	485260BJ1	175,000					175,000
6.64% Series due May 2038	485260B#9	100,000					100,000
4.30% Series due July 2044	485260BM4	250,000					250,000
		875,000					875,000
Pollution control bond series:
Variable rate series due April 2027 (LaCygne)	502828AJ5	21,940					21,940
2.50% Series due June 2031	N/A	50,000					50,000
Variable rate series due April 2032 (St Marys)	792609AE9	14,500					14,500
Variable rate series due April 2032 (Wamego)	933623BM1	10,000					10,000
		96,440					96,440
Total KGE		971,440					971,440

Total long-term debt		3,726,940					3,551,940
Unamortized debt discount		(11,238		)			(10,358		)
Unamortized debt issuance expense		(29,522		)			(27,912		)
Long-term debt due within one year		—					(125,000		)
Total long-term debt, net		$	3,686,180				$	3,388,670

Fuel and purchased power costs fluctuate with electricity sales and unit costs. As permitted by regulators, prices are adjusted to reflect changes in the costs of fuel and purchased power. Fuel and purchased power costs for wholesale customers are recovered at prevailing market prices or based on a predetermined formula with a price adjustment approved by FERC. As a result, changes in fuel and purchased power costs are offset in revenues with minimal impact on net income. For this reason, Westar management believes that gross margin is useful for understanding and analyzing changes in operating performance from one period to the next. Gross margin is calculated as total revenues, including transmission revenues, less the sum of fuel and purchased power costs and amounts billed by the SPP for network transmission costs (SPP NITS). Accordingly, gross margin reflects transmission revenues and costs on a net basis.



	Three Months Ended June 30,							Six Months Ended June 30,
	2017		2016		Change			2017		2016		Change
	(Dollars in Thousands)
Revenues	$	609,321	$	621,448	$	(12,127	)	$	1,181,895	$	1,190,898	$	(9,003	)
Less: Fuel and purchased power expense	111,790		118,630		(6,840		)	225,645		218,688		6,957
SPP network transmission costs	61,763		55,227		6,536			122,437		115,987		6,450
Gross margin	$	435,768	$	447,591	$	(11,823	)	$	833,813	$	856,223	$	(22,410	)

Income from operations	$	155,112	$	153,615	$	1,497		$	281,461	$	295,426	$	(13,965	)
Plus: Operating and maintenance expense	87,158		85,619		1,539			168,356		163,377		4,979
Depreciation and amortization expense	94,029		84,226		9,803			182,655		167,866		14,789
Selling, general and administrative expense	57,579		75,724		(18,145		)	116,735		132,179		(15,444		)
Taxes other than income tax	41,890		48,407		(6,517		)	84,606		97,375		(12,769		)
Gross margin	$	435,768	$	447,591	$	(11,823	)	$	833,813	$	856,223	$	(22,410	)



Contents	Page

Condensed Consolidated Statements of Income	1
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Cash Flows	4
Earnings Variances	5
Supplemental Data	7
Capitalization & Long-Term Debt Table	9
GAAP to Non-GAAP Reconciliation	10