ML081840514
| ML081840514 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 04/25/2008 |
| From: | Stull A Wolf Creek |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| CO 08-0002 | |
| Download: ML081840514 (8) | |
Text
DESIGNATED ORIGINAL PER PROJECT MANAGER WL F CR EE K
'NUCLEAR OPERATING CORPORLATION Annette F. Stull Vice President and Chief Financial Officer (620 364-4004 April 25, 2008 (620) 364-4017 facsimile anstull@wcnoc.com CO 08-0002 Director, Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738
Subject:
Docket No. 50-482: Guarantee of Payment of Deferred Premiums, 10 CFR 140.21 Sir:
Pursuant to the requirements of 10 CFR 140.21, each operating reactor licensee is required to maintain financial protection through guarantees of payment of deferred premiums. The owners of Wolf Creek Generating Station (WCGS) are providing the enclosed documentation of their ability to pay deferred premiums in the amount of fifteen million dollars, as required by 10 CFR 140.21(e).
Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary of Westar Energy, Inc.,
Kansas City Power & Light Company (KCPL), a wholly-owned subsidiary of Great Plains Energy Incorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo), have each provided audited Consolidated Statements of Cash Flows in order to demonstrate sufficient funds are available to meet their share of the deferred premiums.
If you have any questions concerning this matter, please contact me at (620) 364-4004, or Mr.
Richard D. Flannigan at (620) 364-4117.
Sincerely, Annette F. Stull AFS/rlt Enclosures cc: E. E. Collins (NRC) w/e V. G. Gaddy (NRC), w/e B. K. Singal (NRC), w/e Senior Resident Inspector (NRC), w/e Document Control Desk (NRC), w/e P.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831 g )
An Equal Opportunity Employer M/F/HC/VET 7b~ oi
SKGE April 9, 2008 Mr. Thomas J. Robke Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Mr. Robke:
Pursuant to the requirements of 10 CFR 140.21(e), Kansas Gas & Electric Company is providing the attached audited Statement of Cash Flows regarding its ability to make payment of its share of deferred premiums in an amount of $7.05 million.
The undersigned certifies that the foregoing memorandum with respect to Kansas Gas &
Electric Company's cash flow for the year 2007 is true and correct to the best of his knowledge and belief.
Sincerely, Lee Wa e Vice President and Controller Westar Energy, Inc.
Ims attachment cc: Angela Smith 818 South Kansas Avenue P.O. Box 889 I Topeka, Kansas 66601 Office Telephone: (785) 575-6300
KANSAS GAS AND ELECTRIC COMPANY STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 31, 2007 2006 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income...................................................... $ 55,079 $ 73,472 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ...................................................................................... 97,118 94,059 Amortization of nuclear fuel ......................................................................................... 16,711 (13,851)
Amortization of deferred gain from sale-leaseback ...................................................... (5,495) (5,495)
Amortization of corporate-owned life insurance ........................................................... 13,392 14,305 N et deferred taxes ......................................................................................................... (20,936) 13,141 Net changes in energy marketing assets and liabilities ................................................. 2,956 (3,612)
Allowance for equity funds used during construction ................................................... (1,131)
Changes in working capital items:
Account§ receivable, net ............................................................................................... (5,511) 56,921 Inventories and supplies ............................................................................................... (12,904) (15,818)
Prepaid expenses and other ........................................................................................... (36,053) (57,825)
Acco un ts payab le .......................................................................................................... (7,673) 12,827 Payab le to affi liates ...................................................................................................... (34,592)
O ther cu rren t liab ilities ................................................................................................. (12,100) (5,697)
Changes in other assets ....................................................................................................... 1,115 39,864 Changes in other liabilities .................................................................................................. 9 957 (63,733)
Cash flows from operating activities ............................................................... 94 525 103,966 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment ........................................................................ (191,356) (146,521)
Allowance for equity funds used during construction ......................................................... 1,131 Purchase of securities within the nuclear decommissioning trust fund ............................... (240,067) (345,541)
Sale of securities within the nuclear decommissioning trust fund ....................................... 238,414 341,410 Investment in corporate-owned life insurance ..................................................................... (18,793) (19,127)
Proceeds from investment in corporate-owned life insurance ............................................. 544 22,684 Receivable from affiliates ................................................................................................... (6,956)
Proceeds from other investments, net .................................................................................. 1,653 4,122 Cash flows used in investing activities ............................................................ (215,430) (142,973)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from long-term debt ............................................................................................. 175,000 99,662 Retirements of long-term debt ............................................................................................. (25) (200,000)
Investm ent b y p aren t ........................................................................................................... 100,000 Borrowings against cash surrender value of corporate-owned life insurance ...................... 61,472 59,697 Repayment of borrowings against cash surrender value of corporate-owned life in su ra nc e ...................................................................................................................... (544) (22,828)
Dividends to parent company .............................................................................................. (115,000)
Cash flows from financing activities ............................................................... 120,903 36,531 NET DECREASE IN CASH AND CASH EQUIVALENTS ..................................................... (2) (2,476)
CASH AND CASH EQUIVALENTS:
Beg in n ing o f period ............................................................................................................ 2 2,478 E n d o f p e rio d ...................................................................................................................... 5; 2 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID FOR:
Interest on financing activities, net of amount capitalized ........................................... $ 12,659 $ 18,071 NON-CASH INVESTING TRANSACTIONS:
Property, plant and equipment additions ...................................................................... $ 14,746 $ 12,917 NON-CASH FINANCING TRANSACTIONS:
Conversion of intercompany payable ........................................................................... $ $ 120,000 The accompanying notes are an integral part of these financial statements.
4
Kansas Electric Power Cooperative, Inc.
Consolidated Statements of Cash Flows Years Ended December 31, 2007 and 2006 2006 Operating Activities Net margin $ 2,696,657 $ 1,046,682 Adjustments to reconcile net margin to net cash provided by operating activities Depreciation and amortization 3,683,888 3,704,711 Decommissioning 937,014 1,458,328 Amortization of nuclear fuel 2,104,442 1,748,780 Amortization of deferred charges 4,385,787 4,588,218 Amortization of deferred incremental outage costs 2,810,796 2,557,796 Amortization of debt issuance costs 120,542 125,432 Changes in Member accounts receivable (765,716) 637,183 Materials and supplies (139,576) (156,089)
Other assets and prepaid expenses 25,638 120,250 Accounts payable 333,269 208,536 Payroll and payroll-related liabilities 19,449 20,971 Accrued property tax (2,441) 25,533 Accrued interest payable (169,584) 155,139 Restricted assets (52,903) (33,328)
Other long-term liabilities 545,694 (300,801)
Net cash provided by operating activities 16,532,956 15,907,341 Cash Flows From Investing Activities Additions to electric plant (14,730,493) (6,034,758)
Additions to nuclear fuel (4,756,258) (3,179,023)
Additions to deferred incremental outage costs (368,294) (4,078,059)
Investments in decommissioning fund assets (939,498) (1,292,261)
Other (2,258,632) 20,047 Net cash used in investing activities (23,053,175) (14,564,054)
Cash Flows From Financing Activities Net borrowing (payment) under line of credit agreement (3,521,028) 3,521,028 Principle payments on long-term debt (11,162,496) (10,464,348)
Utilization of RUS cushion of credit 3,526,341 Proceeds from issuance of long-term debt 24,065,046 Net cash provided by (used in) financing activities 9,381,522 (3,416,979)
Net increase (decrease) in cash and cash equivalents 2,861,303 (2,073,692)
Cash and Cash Equivalents, Beginning of Year 3,271,471 5,345,163 Cash and Cash Equivalents, End of Year $ 6,132,774 $ 3,271,471 Supplemental Cash Flows Information Cash paid during the year for interest $ 8,355,648 $ 8,385,104 See Notes to Consolidated Financial Statements5 5
UHIEfT PflSI H II;M Y April 8, 2008 Mr. Tom Robke Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Tom:
qt0 +YL Pursuant to the requirements of 10 CFR1.04-21 (e), Kansas City Power & Light Company is providing the attached audited Consolidated Statements of Cash Flows to provide evidence of the ability to make payment of its share of deferred premiums in an amount of $15 million.
To the best of my knowledge, I certify that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2007 is true and correct.
Attachment P.O. Box 418679 - KANSAS CITY, MO 64141-9679 U TEL 816.556.2200 M WWW.KCPL.COM U WWW.GREATPLAINSENERGY.COM
KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2007 2006 2005 Cash Flows from Operating Activities (millions)
Net income $ 156.7 S 149.3 S 143.7 Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 175.6 152.7 146.6 Amortization of:
Nuclear fuel 16.8 14.4 13.4 Other 4.6 6.6 7.7 Deferred income taxes, net 19.7 17.4 (33.6)
Investment tax credit amortization (1.5) (1.2) (3.9)
Fair value impacts from interest rate hedging 1.4 (Gain) loss on property (0.6) 4.6 Minority interest in subsidiaries 7.8 Other operating activities (Note 3) (18.5) (39.4) 79.3 Net cash from operating activities 354.8 299.2 365.6 Cash Flows from Investing Activities Utility capital expenditures (511.5) (475.9) (332.1)
Allowance for borrowed funds used during construction (14.4) (5.7) (1.6)
Purchases of nonutility property (0.1) (0.1) (0.1)
Proceeds from sale of assets 0.1 0.4 0.5 Purchases of nuclear decommissioning trust investments (58.0) (49.7) (34.6)
Proceeds from nuclear decommissioning trust investments 54.3 46.0 31.0 Hawthorn No. 5 partial insurance recovery - - 10.0 Hawthorn No. 5 partial litigation recoveries 15.8 -
Other investing activities (7.6) (0.9) (0.9)
Net cash from investing activities (537.2) (470.1) (327.8)
Cash Flows from Financing Activities Issuance of long-term debt 396.1 334.4 Repayment of long-term debt (372.0) - (335.9)
Net change in short-term borrowings 209.4 124.6 32.4 Dividends paid to Great Plains Energy (140.0) (89.0) (112.7)
Equity contribution from Great Plains Energy 94.0 134.6 Issuance fees (3.7) (0.5) (4.6)
Net cash from financing activities 183.8 169.7 (86.4)
Net Change in Cash and Cash Equivalents 1.4 (1.2) (48.6)
Cash and Cash Equivalents at Beginning of Year 1.8 3.0 51.6 Cash and Cash Equivalents at End of Year $ 3.2 $ 1.8 3.0 The disclosures regarding consolidated KCP&L included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
68
Kansas Electric Power Cooperative, Inc.,
April 18, 2008 Ms. Annette Stull Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Annette:
Pursuant to the requirements of 10 CFR 140.21 (e), Kansas Electric Power Cooperative, Inc. is providing the attached audited Statement of Cash Flows to show its ability to make payment of its share of deferred premiums in an amount of $900,000.
The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. Cash flow for the year 2007 is true and correct to the best of her knowledge and belief.
Sincerely yours, Coleen M. Wells VP Finance, and Controller Enclosure (1)
Phone: 785.273.7010 Fax: 785.271.4888 www.kepco.org P.O. Box 4877 Topeka, KS 66604-0877 600 Corporate View Topeka, KS 66615 A Tochsone Energy"C op itive