ML092470194

Licensee Guarantee of Payment of Deferred Premium

ML092470194
Person / Time
Site:	Palo Verde
Issue date:	08/21/2009
From:	Weber T Arizona Public Service Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
102-06051-TNW/KAR
Download: ML092470194 (4)

Text

10 CFR 140.21(e)

• A L A subsidiary of Pinnacle West Capital Corporation Thomas N. Weber Mail Station 7636 Palo Verde Nuclear Department Leader Tel. 623-393-5764 PO Box 52034 Generating Station Regulatory Affairs Fax 623-393-5442 Phoenix, Arizona 85072-2034 102-06051 -TNW/KAR August 21, 2009 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Generating Station (PVNGS)

Units 1, 2, and 3 Docket Nos. STN 50-528/529/530 Licensee Guarantee of Payment of Deferred Premium Pursuant to the requirements of 10 CFR 140.21(e), Arizona Public Service Company (APS), for itself and on behalf of the PVNGS Participants, has enclosed projected cash flow statements for each participant, except Southern California Edison, who submitted their Statement to the NRC in a letter dated May 27, 2009.

Please note that the projected cash flow statement for Arizona Public Service Company, El Paso Electric Company, Salt River Project and Public Service Company of New Mexico are considered confidential documents, for which affidavits of each company are provided.

The affidavits set forth the bases upon which the Commission is asked to withhold the information from public disclosure. Accordingly, it is requested that the projected cash flow statements for Arizona Public Service Company, El Paso Electric Company, Salt River Project and Public Service Company of New Mexico be withheld from public disclosure.

No commitments are being made to the NRC in this letter. Should you need further information regarding this submittal, please contact Russell A. Stroud, Licensing Section Leader, at (623) 393-5111.

Sincerely, TNW/RAS/KAR/gat tog Enclosure cc:

E. E. Collins Jr.

NRC Region IV Regional Administrator josl J. R. Hall NRC NRR Project Manager R. I. Treadway NRC Senior Resident Inspector for PVNGS A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

• Comanche Peak

• Diablo Canyon

• Palo Verde, San Onofre

• South Texas

• Wolf Creek LAPS Palo Verde Nuclear Generating Station A subsidiary of Pinnacle West Capital Corporation Thomas N. Weber Department Leader Regulatory Affairs Tel. 623-393-5764 Fax 623-393-5442 10 CFR 140.21(e)

Mail Station 7636 PO Box 52034 Phoenix, Arizona 85072-2034 102-06051-TNW/KAR August 21, 2009 U.S. Nuclear Regulatory Commission A TIN: Document Control Desk Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Generating Station (PVNGS)

Units 1, 2, and 3 Docket Nos. STN 50-528/529/530 Licensee Guarantee of Payment of Deferred Premium Pursuant to the requirements of 10 CFR 140.21 (e), Arizona Public Service Company (APS), for itself and on behalf of the PVNGS Participants, has enclosed projected cash flow statements for each participant, except Southern California Edison, who submitted their Statement to the NRC in a letter dated May 27,2009.

Please note that the projected cash flow statement for Arizona Public Service Company, EI Paso Electric Company, Salt River Project and Public Service Company of New Mexico are considered confidential documents, for which affidavits of each company are provided.

The affidavits set forth the bases upon which the Commission is asked to withhold the information from public disclosure. Accordingly, it is requested that the projected cash flow statements for Arizona Public Service Company, EI Paso Ele.ctric Company, Salt River Project and Public Service Company of New Mexico be withheld from public disclosure.

No commitments are being made to the NRC in this letter. Should you need further information regarding this submittal, please contCict Russell A. Stroud, Licensing Section Leader, at (623) 393-5111.

T NW/RAS/KA RIg at Enclosure cc:

E. E. Collins Jr.

J. R. Hall R. I. Treadway Sincerely, NRC Region IV Regional Administrator NRC NRR Project Manager NRC Senior Resident Inspector for PVNGS A member of the STARS (Strategic Teaming and Resource Sharing) Alliance Callaway

• Comanche Peak

• Diablo Canyon

• Palo Verde

• San Onofre

• South Texas

• Wolf Creek

UNITED STATES NUCLEAR REGULATORY COMMISSION PALO VERDE NUCLEAR GENERATING STATION DOCKET NO. 50-5281529/530 AFFIDAVIT IN SUPPORT OF THE REQUEST OF ARIZONA PUBLIC SERVICE COMPANY THAT PORTIONS OF ITS 2009 SUBMITTALS UNDER 10 CFR 140.21(e) IN THIS DOCKET BE WITHHELD FROM PUBLIC DISCLOSURE.

I, Chris N. Froggatt, being duly sworn, depose and state as follows:

1. I am Vice President and Treasurer of Arizona Public Service Company, an Arizona corporation (the "Company").

2.

In my capacity as Vice President and Treasurer of the Company, I am familiar with and I am responsible for the development of the information (hereinafter the "Confidential Information") described in Paragraph 3 of this Affidavit, for which confidential treatment is sought in accordance with the rules of the Nuclear Regulatory Commission (the "Commission") at 10 CFR 2.390(b).

3. The Confidential Information sought to be withheld from public disclosure consists of the Company's Internal Cashflows Statement, which the Company is submitting to the Commission along with this Affidavit. The Confidential Information is submitted in compliance with the Commission's regulations at 10 CFR 140.21(e), pertaining to the Company's "Guarantee of Payment of Deferred Premiums Annual Report".

The Confidential Information includes material non-public information, such as projected earnings, dividend plans, and other projected adjustments.

4. The Company bases its request that the Confidential Information be withheld from public disclosure on the grounds that: the Confidential Information is confidential commercial or financial information coming within the meaning of 10 CFR 2.390(a)(4); it is not publicly known or available in public sources, has not heretofore been publicly disclosed and is safeguarded by the Company as Confidential Information in accordance with the Company's policies and procedures for the protection of proprietary and confidential Company information; the Confidential Information includes projections of the Company's earnings, dividends and cash flows for calendar year 2009, and as such it is a good faith estimation which the Company is not otherwise under a legal obligation to update, disclose or make publicly available, does not constitute final or official publication of that information, and it is not presently eligible for broad public dissemination because it is only a good faith estimation and not a final opinion or statement of fact; such estimates are subject to numerous risks, including those described under "Risk Factors" in Part I,.

Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and-under '"Forward-Looking Statements" in Part I, Item 2 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009; consistent with the Company's treatment of the Confidential Information as such, it is at the same time of its filing with the Commission transmitting the Confidential Information to the Commission, in confidence and is seeking the Commission's concurrence that the Confidential Information will be withheld from public disclosure under the Commission's rules at 10 CFR 2.309(b) for the reasons stated in this Affidavit.

5.

The Company requests that the Commission withhold the Confidential Information from public disclosure because its dissemination in a manner not controlled by the Company or inconsistent with the rules and regulations of the Securities and Exchange Commission ("SEC")

may result in violations of certain SEC regulations, resulting in significant harm to the Company.

6.

The Confidential Information, being a one-page document, has been conspicuously marked "PROPRIETARY - FINANCIAL INFORMATION" in compliance with the Commission's UNITED STATES NUCLEAR REGULATORY COMMISSION PALO VERDE NUCLEAR GENERATING STATION DOCKET NO. 50-528/529/530 AFFIDAVIT IN SUPPORT OF THE REQUEST OF ARIZONA PUBLIC SERVICE COMPANY THAT PORTIONS OF ITS 2009 SUBMITTALS UNDER 10 CFR 140.21(e) IN THIS DOCKET BE WITHHELD FROM PUBLIC DISCLOSURE.

I, Chris N. Froggatt, being duly sworn, depose and state as follows:

1. I am Vice President and Treasurer of Arizona Public Service Company, an Arizona corporation (the "Company").

2. In my capacity as Vice President and Treasurer of the Company, I am familiar with and I am responsible for the development of the information (hereinafter the "Confidential Information") described in Paragraph 3 of this Affidavit, for which confidential treatment is sought in accordance with the rules of the Nuclear Regulatory Commission (the "Commission") at 10 CFR 2.390(b).

3. The Confidential Information sought to be withheld from public disclosure consists of the Company's Internal Cashflows Statement, which the Company is submitting to the Commission along with this Affidavit. The Confidential Information is submitted in compliance with the Commission's regulations at 10 CFR 140.21(e), pertaining to the Company's "Guarantee of Payment of Deferred Premiums Annual Report".

The Confidential Information includes material non-public information, such as projected earnings, dividend plans, and other projected adjustments.

4: The Company bases its request that the Confidential Information be withheld from public disclosure on the grounds that: the Confidential Information is confidential commercial or financial information coming within the meaning of 10 CFR 2.390(a)(4); it is not publicly known or available in public sources, has not heretofore been publicly disclosed and is safeguarded by the Company as Confidential Information in accordance with the Company's policies and procedures for the protection of proprietary and confidential Company information; the Confidential Information includes projections of the Company's earnings, dividends and cash flows for calendar year 2009, arid as such it is a good faith estimation which the Company is not otherwise under a legal obligation to update, disclose or make publicly available, does not constitute final or official publication of that information, and it is not presently eligible for broad public dissemination because it is only a good faith estimation and not a final opinion or statement of fact; such estimates are subject to numerous risks, including those described under "Risk Factors" in Part I,.

Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 and, under "Forward-Looking Statements" in Part I, Item 2 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009; consistent with the Company's treatment of the Confidential Information as such, it is at the same time of its filing with the Commission transmitting the Confidential Information to the Commission* in confidence and is seeking the Commission's concurrence that the Confidential Information will be withheld from public disclosure under the Commission's rules at 10 CFR 2.309(b) for the reasons stated in this Affidavit.

5.

The Company requests that the Commission withhold the Confidential Information from public disclosure because its dissemination iri a manner not controlled by the Company or inconsistent with the rules and regulations of the Securities and Exchange Commission ("SEC")

may result in violations of certain SEC regulations, resulting in significant harm to the Company.

6.

The Confidential Information, being a one-page document, has been conspicuously marked "PROPRIETARY - FINANCIAL INFORMATION" in compliance with the Commission's

\\

rules at 10 CFR 2.390(b)(1)(i)(A) and (B).

Moreover, those portions of the document containing information specifically sought to be protected have been flagged with notations indicating their confidential nature as commercial or financial information not publicly known.

WHEREFORE, the undersigned has signed his name as of the 3p7 ay of July, 2009.

Chris N. Frog STATE OF ARIZONA

)SS.

County of Maricopa SUBSCRIBED to and sworn before me this 13ay of July, 2009.

_OFFICIAL SEAL

• a.

c CHERYL HOUSER Notary PubNOTARY PUBLIC - State of Arizona MARICOPA COUNTY My Comm. Expires Nov. 6, 2012 My Commission Expires: /

Page 2 of 2 Pages 2

rules at 10 CFR 2.390(b)(1 )(i)(A) and (B). Moreover, those portions of the document containing information specifically sought to be protected have been flagged with notations indicating their confidential nature as commercial or financial information not publicly known.

WHEREFORE, the undersigned h~S signed his name as of the 1?lft.y of July, 2009.

STATE OF ARIZONA

)

) ss.

County of Maricopa

)

SUBSCRIBED to and sworn before me this 3'C(jay of July, 2009.

N(!;~~

My Commission Expires: /1 -,-tGP /~

Page 2 of 2 Pages OFFICIAL SEAL CHERYL HOUSER NOTARY PUBLIC* State of Arizona MARICOPA COUNTY My Comm. Expires Nov. 6, 2012 2

ATTACHMENT - 3 NON-PROPRIETARY VERSION ARIZONA PUBLIC SERVICE COMPANY Joint Owner Of Palo Verde Nuclear Generating Station**

INTERNAL CASHFLOWS

($Millions) 2008 2009 Results Projected

1.

Net Income After Taxes - Continuing Operations 262.3 (e)

Less:

2.

Dividends Paid on Preferred Stock (e)

3.

Dividends Paid on Common Stock 170.0 (e)

4.

Retained Earnings 92.3 (e)

Adjustments:

5.

Depreciation and Amortization (a) 416.7 444.3

6.

Deferred income Taxes (b) 53.1 45.5

7.

Allowance for Funds Used During Construction (Equity & Borrowed)

(32.9)

(45.3)

8.

Decommissioning (20.7)

(21.8)

9.

Deferred Fuel 102.9 32.9

10.

Other balance sheet assets and liabilities (31.2) n/a

11.

Total Adjustments (c) 487.9 456

12.

Internal Cash Flow 580.2 (e)

13.

Average Quarterly Cash Flow 145.1 (e)

NOTES: ** APS Percentage Ownership in All Nuclear Units:

Unit 1 - 29.1%

Unit 2 - 29.1%

(d)

Unit 3 - 29.1%

(a) Includes Nuclear Fuel Amortization (b) Includes Change in unrecognized tax benefits (c) Projected period excludes forecasted changes in working capital.

(d) Includes the leased portion of Palo Verde Unit 2.

(e) Company policy prohibits disclosure of financial forecast data which will enable earnings or dividend forecasts by unauthorized persons; unless assured of confidentiality.

I, Chris N. Froggatt, Vice President and Treasurer of APS, certify that these cashflows utilize the Company's approach to estimating cash flows for internal management reports and planning purposes. 2008 reflects actual results of operations and are consistent with APS 2008 Statement of Cashflows. The 2009 estimate of cashflows is based on the 2009 Company Budget.

C-troogg'ý Date: 7/35/07 Chris N. Froggattr

//

IP Vice President and Treasurer of APS NRCAttachment 2 3.xls

1.

2.

3.

4.

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6.

7.

8.

9.

10.

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12.

13.

ATTACHMENT - 3 NON-PROPRIETARY VERSION ARIZONA PUBLIC SERVICE COMPANY Joint Owner Of Palo Verde Nuclear Generating Station**

INTERNAL CASHFLOWS

($Millions)

Net Income After Taxes - Continuing Operations Less:

Dividends Paid on Preferred Stock Dividends Paid on Common Stock Retained Earnings Adjustments:

Depreciation and Amortization (a)

Deferred income Taxes (b)

Allowance for Funds Used During Construction (Equity & Borrowed)

Decommissioning Deferred Fuel Other balance sheet assets and liabilities Total Adjustments (c)

Internal Cash Flow Average Quarterly Cash Flow NOTES ** APS Percentage Ownership in All Nuclear Units:

Unit 1 - 29.1%

Unit 2 - 29.1% (d)

Unit 3 - 29.1%

(a) Includes Nuclear Fuel Amortization (b) Includes Change in unrecognized tax benefits 2008 Results 262.3 170.0 92.3 416.7 53.1 (32.9)

(20.7) 102.9 (31.2) 487.9 580.2 145.1 (c) Projected period excludes forecasted changes in working capital.

(d) Includes the leased portion of Palo Verde Unit 2.

2009 Projected (e)

(e)

(e)

(e) 444.3 45.5 (45.3)

(21.8) 32.9 n/a 456 (e)

(e)

(e) Company policy prohibits disclosure of financial forecast data which will enable earnings or dividend forecasts by unauthorized persons; unless assured of confidentiality.

I, Chris N. Froggatt, Vice President and Treasurer of APS, certify that these cashflows utilize the Company's approach to estimating cash flows for internal management reports and planning purposes. 2008 reflects actual results of operations and are consistent with APS 2008 Statement of Cashflows. The 2009 estimate of cashflows is based on the 2009 Company Budget.

Ch~r~~a~

Vice President and Treasurer of APS NRC_Attachment 2 3.xls