ML072180241

Guarantee of Payment of Deferred Premiums

ML072180241
Person / Time
Site:	Calvert Cliffs
Issue date:	07/31/2007
From:	Spina J Calvert Cliffs, Constellation Generation Group
To:	Office of Nuclear Reactor Regulation
References
Download: ML072180241 (6)

Text

James A. Spina Calvert Cliffs Nuclear Power Plant, Inc.

Vice President 1650 Calvert Cliffs Parkway Lusby, Maryland 20657 410.495.5200 410.495.3500 Fax 0 Constellation Energy Generation Group July 31, 2007 U. S. Nuclear Regulatory Commission Washington, DC 20555 ATTENTION: Director, Nuclear Reactor Regulation

SUBJECT:

Calvert Cliffs Nuclear Power Plant Unit Nos. I & 2: Docket Nos. 50-317 & 50-318 Guarantee of Payment of Deferred Premiums In accordance with the requirements of 10 CFR 140.21, we are attaching the guarantee of payment of deferred premiums for our Calvert Cliffs Nuclear Power Plant reactors.

Exhibit I Internal Cash Flow Projection for Calvert Cliffs Nuclear Power Plant Exhibit 1I Curtailment of Capital Expenditures Should you have questions regarding this matter, please contact Mr. Jay S. Gaines at (410) 495-5219.

Very truly yours, James A. Spina Vice President - Calvert Cliffs Nuclear Power Plant JAS/CAN/bjd Exhibits: As stated cc: (Without Exhibits)

Document Control Desk, NRC Resident Inspector, NRC D. V. Pickett, NRC R. I. McLean, DNR S. J. Collins, NRC w~oo(

EXHIBIT (I)

INTERNAL CASH FLOW PROJECTION FOR CALVERT CLIFFS NUCLEAR POWER PLANT Calvert Cliffs Nuclear Power Plant, Inc.

.July 31, 2007

Exhibit I Page 1 of 2 Internal Cash Flow Projection For Calvert Cliffs Nuclear Power Plant Percentage Ownership in all Operating Calvert Cliffs Unit No. I 100.00%

Nuclear Units Calvert Cliffs Unit No. 2 100.00%

Maximum Total Contingent Liability Per Nuclear Incident ($000) $201,200 Payable Per Reactor Per Year ($000) $15,000 2006 2007 Actual Projected

$000 $000 Net Income 936,400 822,001 Less: Dividends Paid (264,000) (306,000)

Retained Earnings 672,400 516,001 Adjustments:

Depreciation and Amortization 545,100 682,971 Deferred income Taxes 128,000 63,576 Investment tax credit (6,900) (5,214)

Allowance for funds used during construction** (3,700) (7,301)

Total Adjustment 662,500 734,032 Internal Cash Flow 1,334,900 1,250,033 Average Quarterly Cash Flow 333,725 312,508

Exhibit I Page 2 of 2 Constellation Energy Group Underlying Assumptions for Projected Cash Flows (1) Depreciation is generally computed using composite straight-line rates applied to the average investment in classes of depreciable property. Vehicles are depreciated based on their estimated useful lives.

(2) Estimates of Federal income taxes and other tax expense are based upon existing tax laws and any known changes thereto.

(3) Accounting policies are consistent with those in effect December 31, 2006.

EXHIBIT (II)

CURTAILMENT OF CAPITAL EXPENDITURES Calvert Cliffs Nuclear Power Plant, Inc.

July 31, 2007

Exhibit II Constellation Energy Group Curtailment of Capital Expenditures Estimated construction expenditures including nuclear fuel and Allowance for Funds Used During Construction for the twelve months ended December 31, 2007 is $1,854 million. To insure that retrospective premiums under the Price Anderson Act would be available during the aforementioned twelve month period without additional funds from external sources, construction curtailments would affect all construction expenditures rather than impacting a specific project.