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                                                                    Exhibit 10.3












                             WESTAR INDUSTRIES, INC.

                         2001 SHORT TERM INCENTIVE PLAN
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                             WESTAR INDUSTRIES, INC.
                         2001 SHORT TERM INCENTIVE PLAN


     The purpose of the Westar Industries, Inc. 2001 Short Term Incentive Plan
(Plan) is to motivate key executives, managers, and select exempt employees to
achieve the highest level of performance to further the achievement of Westar
Industries' goals, objectives, and strategies. This Plan is designed to reward
performance using financial incentives to supplement base compensation. Also,
the Plan will enhance the ability of the Company to attract new executive talent
when needed. In addition, the Plan is intended to benefit the Company in the
pursuit of its goals and objectives by stimulating and motivating officers and
select employees, which will in turn enhance productivity and promote the
retention of experienced and qualified executive talent in a cost effective and
efficient manner. A further purpose of the Plan is to serve as a qualified
performance-based compensation program under Section 162(m) of the Code.

     1. Definitions. As used herein the following words and phrases shall have
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the following respective meanings unless the context clearly indicates
otherwise:

     (a) Award: A Regular Award or Insurance-Related Award under the Plan.
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     (b) Base Compensation: The annualized salary or hourly rate of pay paid to
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a Participant, excluding shift differentials, overtime, bonuses, commissions, or
any pay element other than the base rate.

     (c) Beneficiary: The person or persons designated by a Participant or
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otherwise determined pursuant to Section 8 to receive any payment which under
the terms and conditions of a Regular Award may be made on behalf of the
Participant on or after the Participant's death.

     (d) Board of Directors: The Board of Directors of the Company.
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     (e) Code: The Internal Revenue Code of 1986, as amended.
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     (f) Committee: The Committee established by the Board of Directors pursuant
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to Section 2 to administer the Plan.

     (g) Company: Westar Industries, Inc., a Kansas corporation, and its
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successors and assigns.

     (h) Covered Employee: An employee of the Company described in Section
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162(m)(3) of the Code (or any successor provision).
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     (i) Insurance-Related Award: An award granted to a Participant under the
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terms of the Plan entitling such Participant to the purchase of a Policy on the
Participant's life conditioned upon attainment of specified performance goals.

     (j) Participant: An employee who is eligible to receive an Award pursuant
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to Section 3 and to whom an individual Award has been made under the Plan, but
which has not been paid, canceled, or otherwise terminated or satisfied under
the terms of the Award.

     (k) Plan: The Plan herein set forth, and as from time to time amended.
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     (l) Policy: A life insurance policy on the life of a Participant in which
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the Company and the Participant each have an interest.

     (m) Regular Award: An award granted to a Participant under the terms of the
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Plan entitling such Participant to payment as set forth in the award conditioned
upon attainment of specified performance goals.

     (n) Split-Dollar Agreement: The Split-Dollar Agreement entered into by the
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Participant and the Company pursuant to Section 6(b).

         2. Administration. A committee of at least two directors, all of whom
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shall be "outside directors" within the meaning of Section 162(m) of the Code
and the regulations thereunder, shall be responsible for administering the Plan,
determining whether actual individual compensation Awards have been earned,
approving the amount of the actual individual compensation Awards, and
establishing the terms of any Policy or Split-Dollar Agreement.

         The Committee shall have full and complete discretion (subject to the
terms of the Plan) to determine the persons to whom Awards shall be granted, to
determine whether to grant Regular Awards or Insurance-Related Awards or both,
to grant Awards, to determine the terms, conditions, restrictions and
performance goals relating to any Award, to adopt, alter and repeal
administrative rules, guidelines and practices governing the operation of the
Plan, to decide questions of fact under the Plan, or any Policy or Split-Dollar
Agreement, and to interpret and apply the terms and provisions of the Plan and
any Policy and Split-Dollar Agreement in all respects.
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         The members of the Committee and all directors, agents, officers,
fiduciaries, and employees of the Company shall not be liable for any act,
omission, interpretation, construction, or determination made in good faith in
connection with their responsibilities with respect to the Plan or any Policy or
Split-Dollar Agreement; and the Company hereby agrees to indemnify the members
of the Committee and all directors, agents, officers, fiduciaries, and employees
of the Company in respect to any claim, loss, damage, or expense (including
counsel fees) arising from any such act, omission, interpretation, construction,
or determination to the full extent permitted by law.

         3. Eligibility to Participate. The persons who are eligible to receive
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Awards under the Plan are all Covered Employees and such other salaried
employees or groups of salaried employees of the Company as the Committee shall
designate.

         4. Awards. (a) Not later than 90 days after the beginning of each
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calendar year (or such other date as may be required or permitted by Section
162(m) of the Code to establish performance-based annual incentive award
targets), the Committee will determine the persons to whom Awards shall be made
for that calendar year, determine whether the Awards shall be Regular Awards,
Insurance-Related Awards or a combination thereof, select one or more
performance measures, establish the objective written performance goals with
respect to each selected performance measure, and establish in writing the Award
opportunities and other terms of the Awards to be made to each Participant. The
performance measures which may serve as determinants of a Participant's Award
opportunities are limited to: total shareholder return; earnings per share;
operating income; net income; pro forma net income; earnings before interest,
taxes, depreciation and/or amortization; return on shareholders' equity; return
on designated assets; shareholder value added; revenues; capital gains;
expenses; operating profit margin; operating cash flow; net profit margin; and
achievement of operational strategies in terms of control of accidents, lost
time and/or customer satisfaction. The performance goals may be determined by
reference to the performance of the Company or of a subsidiary or affiliate of
the Company, or of a division or unit of any of the foregoing. The selected
goals may be different for different Participants.

     (b) In the case of Regular Awards, performance goals shall include a
threshold level below which no payment shall be made, a level of performance at
which the target payment shall be made and a maximum level of performance above
which no additional amount shall be paid. Unless the Committee determines
otherwise, a Participant's Regular Award opportunity shall be expressed in terms
of a percentage of the Participant's Base Compensation for the applicable
calendar year.
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     (c) The Committee may adjust the performance goals established for a
particular calendar year, to the extent consistent with Section 162(m) of the
Code, to account for extraordinary events which may affect the determination of
performance by the Participant, in order to avoid distortions in the operation
of the Plan. Such events may include, without limitation, special charges and
other extraordinary items or significant acquisitions or divestitures.

     (d) The maximum amount payable to any Participant in respect of all Regular
Awards under the Plan in respect of any calendar year is $3 million.

     (e) The maximum amount of compensation that may be earned by any
Participant in respect of all Insurance-Related Awards for any calendar year is
$10 million.

         5. Payment of Regular Awards.
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     (a) Generally. Payment in respect of Regular Awards that have been earned
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shall be made in cash following the calendar year for which the Regular Award
was granted. Before payment is made to any Participant in respect of any Regular
Award, the Committee must certify in writing the extent to which the Participant
has satisfied the performance goals established for the Participant in the
Regular Award, and payment shall be made only to the extent the Regular Award
has been earned on account of attainment of such performance goals. The
Committee may not increase the amount payable under the Regular Award above the
amount actually earned pursuant to the terms of the Regular Award.

     (b) Termination of Employment. If a Participant ceases to be continually
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employed by the Company (other than as a result of a Company-approved leave of
absence, the Participant's death, disability, or retirement under the Company
pension plan's early or normal retirement provisions or other circumstances
specified by the Committee), the Participant shall forfeit all rights to a
Regular Award for the calendar year not yet ended.

     (c) Payment in the Event of Death, Disability, or Retirement. If a
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Participant dies, becomes disabled, or retires under the Company pension plan's
early or normal retirement provisions during a calendar year, his or her Regular
Award for that calendar year shall be reduced to reflect only participation
prior to termination. This reduction is based on the number of months the
individual was an active Participant in the Plan in the calendar year of
termination. In the event of the Participant's death while a Regular Award is
outstanding, payments of any amounts due under such Regular Award shall be made
to the Participant's Beneficiary.
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     (d) Payment in the Event of Change of Control. Anything in this Plan to the
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contrary notwithstanding, in the event of a "Change of Control" as defined in
subsection (e) below, the Regular Award for the calendar year in which the
"Change of Control" occurs shall be the greater of (i) the Participant's target
bonus for that calendar year or (ii) the bonus computed by determining the
performance as of the date of the "Change of Control" and then projecting such
performance through December 31 of that calendar year as if such performance had
continued at the same rate through such December 31. The Regular Award as so
computed shall be paid to Participants as soon as administratively practicable
following the "Change of Control."

     (e) Definition of Change of Control. For purposes of subsection (d) above,
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"Change of Control" means the occurrence of any one of the following events:

          (1) individuals who, on the Effective Date (as defined in Section 16),
     constitute the Board of Directors (the "Incumbent Directors") cease for any
     reason to constitute at least a majority of the Board of Directors,
     provided that any person becoming a director subsequent to the Effective
     Date, whose election or nomination for election was approved by a vote of
     at least three-fourths of the Incumbent Directors then on the Board of
     Directors (either by a specific vote or by approval of the proxy statement
     of the Company in which such person is named as a nominee for director,
     without written objection to such nomination) shall be an Incumbent
     Director; provided, however, that no individual initially elected or
     nominated as a director of the Company as a result of an actual or
     threatened election contest with respect to directors or as a result of any
     other actual or threatened solicitation of proxies or consents by or on
     behalf of any person other than the Board of Directors shall be deemed to
     be an Incumbent Director;

          (2) any "person" (as such term is defined in Section 3(a)(9) of the
     Securities Exchange Act of 1934 (the "Exchange Act") and as used in
     Sections 13(d)(3) and 14(d)(2) of the Exchange Act), subsequent to the
     Effective Date, becomes a "beneficial owner" (as defined in Rule 13d-3
     under the Exchange Act), directly or indirectly, of securities of the
     Company representing 20% or more of the combined voting power of the
     Company's then outstanding securities eligible to vote for the election of
     the Board of Directors (the "Company Voting Securities"); provided,
     however, that the event described in this paragraph (2) shall not be deemed
     to be a Change of Control by virtue of any of the following acquisitions:
     (A) by the Company or any subsidiary, (B) by Western Resources, Inc., (C)
     by any employee benefit plan (or related trust) sponsored or maintained by
     the Company or any subsidiary, (D) by any underwriter temporarily holding
     securities pursuant to an offering of such securities, or (E) pursuant to a
     Non-Qualifying Transaction (as defined in paragraph (3));
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          (3) the consummation of a merger, consolidation, statutory share
     exchange or similar form of corporate transaction involving the Company (a
     "Business Combination"), unless immediately following such Business
     Combination: (A) more than 75% of the total voting power of (x) the
     corporation resulting from such Business Combination (the "Surviving
     Corporation"), or (y) if applicable, the ultimate parent corporation that
     directly or indirectly has beneficial ownership of 100% of the voting
     securities eligible to elect directors of the Surviving Corporation (the
     "Parent Corporation"), is represented by Company Voting Securities that
     were outstanding immediately prior to such Business Combination (or, if
     applicable, is represented by shares into which such Company Voting
     Securities were converted pursuant to such Business Combination), and such
     voting power among the holders thereof is in substantially the same
     proportion as the voting power of such Company Voting Securities among the
     holders thereof immediately prior to the Business Combination, (B) no
     person (other than any employee benefit plan (or related trust) sponsored
     or maintained by the Surviving Corporation or the Parent Corporation) is or
     becomes the beneficial owner, directly or indirectly, of 20% or more of the
     total voting power of the outstanding voting securities eligible to elect
     directors of the Parent Corporation (or, if there is no Parent Corporation,
     the Surviving Corporation) and (C) at least a majority of the members of
     the board of directors of the Parent Corporation (or, if there is no Parent
     Corporation, the Surviving Corporation) following the consummation of the
     Business Combination were Incumbent Directors at the time of the approval
     by the Board of Directors of the execution of the initial agreement
     providing for such Business Combination (any Business Combination which
     satisfies all of the criteria specified in (A), (B) and (C) above shall be
     deemed to be a "Non-Qualifying Transaction"); or

          (4) the stockholders of the Company approve a plan of complete
     liquidation or dissolution of the Company or a sale of all or substantially
     all of the Company's assets.

     For purposes of this definition, "subsidiary" shall mean any corporation or
     other entity in which the Company has a direct or indirect ownership
     interest of 50% or more of the total combined voting power of the then
     outstanding securities or interests of such corporation or other entity
     entitled to vote generally in the election of directors or in which the
     Company has the right to receive 50% or more of the distribution of profits
     or 50% or more of the assets upon liquidation or dissolution.
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         6. Insurance-Related Awards
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     (a) Generally. Following the calendar year for which an Insurance-Related
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Award is granted, the Committee shall determine the amount of the
Insurance-Related Award earned by the Participant that is to be applied toward
the purchase of a Policy on the life of the Participant. Before a Policy is so
purchased, the Committee must certify in writing the extent to which the
Participant has satisfied the performance goals established for the Participant
in the Insurance-Related Award, and the purchase shall be made only to the
extent the Insurance-Related Award has been earned on account of attainment of
such performance goals. The Committee may not increase the amount to be applied
to the purchase of a Policy pursuant to the Insurance-Related Award above the
amount actually earned pursuant to the terms of the Insurance-Related Award.

     (b) Terms of Split-Dollar Agreement. As a condition to the purchase of a
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Policy on the life of a Participant, the Participant must enter into a
Split-Dollar Agreement with the Company in such form as the Committee shall, in
its sole discretion, determine. Unless the Committee determines otherwise, such
Agreement shall include the following:

          (i)  The Company shall be the owner of the Policy and shall be
               entitled to designate the beneficiary of the portion of the death
               benefit to which it is entitled as provided in (iii) below.

          (ii) The Participant shall be entitled to designate the beneficiary or
               beneficiaries to receive a portion of the Policy death benefit as
               provided in (iii) below.

         (iii) Upon the death of the Participant, the Company shall have the
               right to receive the portion of the death benefit equal to the
               sum of (A) the greater of the total amount of the premiums paid
               by the Company under the Policy (as adjusted for interest at a
               rate determined by the Committee) or the cash surrender value of
               the Policy, reduced in either case by any indebtedness against
               the Policy existing at the time of the Participant's death
               (including any interest due on such indebtedness) together with
               (B) the amount of any death benefit sold to the Company by the
               Participant as described in (iv) below. The balance of the death
               benefit shall be payable to the beneficiary or beneficiaries
               designated by the Participant.
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          (iv) The Participant shall have the right to sell to the Company at a
               price determined under a formula established in the Split-Dollar
               Agreement all or a portion of his or her interest in the death
               benefit under the Policy, subject to such terms and conditions as
               the Committee may determine; provided, however, that any amounts
               payable to the Participant in connection with any such sale shall
               be subject to satisfaction of the performance goals established
               for the Participant in the Insurance-Related Award.

         7. Withholding for Taxes. The Company will provide for the withholding
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of any taxes required by any governmental authority with respect to any income
earned under the Plan. The amount withheld shall be paid over by the Company to
such governmental authority for the account of the Participant entitled to the
payment.

         8. Designation of Beneficiary. A Participant shall designate a
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Beneficiary or Beneficiaries on the Beneficiary Designation form prescribed by
the Committee (which may be designated contingently and which may be an entity
other than a natural person) to receive any amounts which may become payable on
or after the Participant's death under a Regular Award. Any such designation
may, unless the Participant has waived such right, from time to time and at any
time, be changed or canceled by the Participant without the consent of a
Beneficiary. Any such designation must be in writing and filed with the
Committee. If a Participant designates more than one Beneficiary, any payments
under a Regular Award to such Beneficiaries shall be made in equal shares unless
the Participant has designated otherwise, in which case the payments shall be
made in the shares designated by the Participant. If a Participant does not
designate a Beneficiary or there is no proper designation of a Beneficiary or no
person designated as a Beneficiary shall survive the Participant by 30 days, the
Participant's Beneficiary shall be his or her estate.

         9. No Rights To Corporate Assets. Nothing contained herein shall be
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construed as giving a Participant, his or her Beneficiary, or any other person
any equity or other interest of any kind in any assets of the Company (except an
interest in a Policy to the extent provided in a Split-Dollar Agreement) or
creating a trust of any kind or a fiduciary relationship of any kind between the
Company and any such person. As to any claim for any unpaid amounts under the
Plan or a Split-Dollar Agreement, a Participant, his or her beneficiary, and any
other person having a claim for payments shall be unsecured creditors.
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                                       9

         10. Non-Assignability. Except for the designation of a beneficiary
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pursuant to Section 6 or 8, neither a Participant nor a Participant's
beneficiary shall have the power or right to transfer, assign, anticipate,
mortgage, or otherwise encumber his or her interest in the Plan; nor shall such
interest be subject to seizure for the payment of a Participant's or
beneficiary's debts, judgments, alimony, or separate maintenance or be
transferable by operation of law in the event of a Participant's or
beneficiary's bankruptcy or insolvency.

         The Company's obligations under the Plan are not assignable or
transferable except to a company which acquires all or substantially all of the
assets of the Company or to any corporation into which the Company may be merged
or consolidated.

         11. Amendment and Termination. The Board of Directors may from time to
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time and at any time alter, amend, suspend, discontinue, or terminate the Plan;
provided, however, that no amendment which requires stockholder approval in
order for the Plan to continue to comply with Code Section 162(m) shall be
effective unless such amendment shall be approved by the stockholders of the
Company. Nothing contained in the Plan shall be construed to prevent the Company
from taking any corporate action which is deemed by the Company to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Participant's interest in the Plan. Neither
any Participant nor any other person shall have any claim against the Company as
a result of any such action. Notwithstanding the foregoing, the Board of
Directors may not modify (or terminate) the Plan to the extent doing so would
adversely affect the rights of Participants to an outstanding Award at the time
of the modification.

         12. No Right of Employment. Nothing contained in the Plan shall be
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construed as conferring upon a Participant the right to continue in the employ
of the Company.

         13. Interpretation. The Plan is designed and intended to comply with
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Section 162(m) of the Code, to the extent applicable, and all provisions hereof
shall be construed in a manner to so comply.

         14. Governing Law. All rights and obligations under the Plan shall be
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governed by, and the Plan shall be construed in accordance with, the laws of the
State of Kansas.

         15. Titles and Headings. Titles and headings to sections herein are for
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purposes of reference only and shall in no way limit, define, or otherwise
affect the meaning or interpretation of any provisions of the Plan.
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         16. Effective Date. The Plan shall become effective upon consummation
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of the rights offering to shareholders of Western Resources, Inc. entitling the
holders to purchase shares of the Company's common stock (the "Effective Date").