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) 140.21(e)

LAPS

• AL A subsidiary subsidiary ofPinnacle Pinnacle West Capital CapitalCorporation Corporation Thomas N.

N. Weber Weber Mail Station 7636 Palo Verde Nuclear Nuclear Department Department Leader Leader Tel. 623-393-5764 623-393-5764 PO Box 52034 Generating Generating Station Station Regulatory Regulatory Affairs 623-393-5442 Fax 623-393-5442 Phoenix, Arizona Arizona 85072-2034 85072-2034 102-06051 -TNW/KAR 102-06051-TNW/KAR August 21, 21, 2009 U.S. Nuclear Regulatory Commission ATTN:

A TIN: Document Control Desk Washington, DC 20555-0001

Subject:

Palo Verde Nuclear Nuclear Generating Generating Station (PVNGS)

Units 1, 2, and 3 Docket Nos. STN 50-528/529/530 50-528/529/530 Licensee Guarantee Licensee Guarantee of Payment of Deferred Deferred Premium Pursuant to the requirements Pursuant requirements of 10 CFR 140.21 140.21(e),(e), Arizona Public Service Company (APS),

(APS) , for itself and on behalf of the PVNGS Participants, has enclosed enclosed projected cash flow statements statements for each participant, except Southern California Edison, who submitted Southern California their Statement to the NRC in a letter dated May 27,2009. 27, 2009.

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

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

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

Leader, at (623) 393-5111.

Sincerely, TNW/RAS/KAR/gat T NW/RAS/KARIg at tog Enclosure Enclosure cc: E. E. Collins Jr.

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

• Comanche Peak

• Diablo Canyon ** Palo Verde *, San Onofre

• South South Texas

• Wolf Creek

UNITED UNITED STATES NUCLEAR NUCLEAR REGULATORY COMMISSION REGULATORY COMMISSION PALO VERDE NUCLEARNUCLEAR GENERATING GENERATING STATION DOCKET NO. NO. 50-5281529/530 50-528/529/530 AFFIDAVIT IN IN SUPPORT SUPPORT OF THE REQUEST OF ARIZONA ARIZONA PUBLIC SERVICE COMPANY COMPANY THAT PORTIONS PORTIONS OF ITS 2009 SUBMITTALS SUBMITTALS UNDER UNDER 10 CFR 140.21(e) 140.21(e) IN IN THIS DOCKET BE BE WITHHELD FROM WITHHELD DISCLOSURE.

FROM PUBLIC DISCLOSURE.

I,I, Chris N.

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

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

corporation

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

Nuclear Regulatory Commission "Commission") at 10 CFR 2.390(b).

CFR

3. The Confidential Confidential Information Information sought to be withheld from public disclosuredisclosure consists of the Company's Internal Internal Cashflows Statement, which the Company is submitting to the the Commission along with this Affidavit. The Confidential Information Information is submitted submitted in compliance compliance with the Commission's Commission's regulations at 10 CFR 140.21(e), 140.21(e), pertaining to the Company's "Guarantee of Payment Payment of DeferredDeferred Premiums Annual Annual Report". The Confidential Information Information includes includes material information, such as projected material non-public information, projected earnings, dividend plans, and other projected adjustments.

4. The Company bases its request that the Confidential 4: Confidential Information Information be withheld from from public public disclosure on the grounds that: the Confidential Information Information is confidential commercial commercial or or financial information information coming within the meaning of 10 10 CFR 2.390(a)(4);

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

I,.

Item Item 1A of the Company's Company's Annual ReportReport on Form 10-K 10-K for the fiscal year endedended December December 31, 31, and-under 2008 and, under '"Forward-Looking "Forward-Looking Statements" in Part I,I, Item 2 of the Company's Company's Quarterly Report Report on Form 10-Q 10-Q for the quarter ended March 31, 31, 2009; consistent with the Company'sCompany's treatment of the Confidential Information as such, it is at the same time of its filing with the the Commission transmitting the Confidential Commission transmitting Information to the Commission*

Confidential Information Commission, in in confidence and is seeking the Commission's Commission's concurrence concurrence that the Confidential Information Information will be withheld from public public disclosure disclosure underunder the Commission's Commission's rules at 10 CFR 2.309(b) for the reasons stated this stated in this Affidavit.

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

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

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

\

rules at 10 CFR 2.390(b)(1 2.390(b)(1)(i)(A)

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

WHEREFORE, the undersigned WHEREFORE, h~S undersigned has signed his name 1?lft.

name as of the 3p7 ayy of July, 2009.

Chris N. Frog STATE OF ARIZONA ARIZONA )

ss.

))SS.

County of Maricopa Maricopa )

SUBSCRIBED to and sworn before me this 3'C(jay SUBSCRIBED 13ay of July, 2009.

N(!;~~ *a. c Notary PubNOTARY

_ __ __ _ _ _OFFICIAL OFFICIAL SEAL CHERYL HOUSER CHERYL SEAL HOUSER PUBLIC - State of Arizona NOTARY PUBLIC* State of Arizona MARICOPA COUNTY MARICOPA COUNTY My My Comm. Expires Nov.

Comm. Expires Nov. 6, 2012 6, 2012 My Commission Expires:

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

Page 2 of 22 Pages Pages 2

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

Nuclear Generating Station**

INTERNAL CASHFLOWS INTERNAL CASHFLOWS

($Millions) 2008 2009 2009 Results Projected Projected 1.

1. Net Income After Taxes - Continuing Operations Operations 262.3 262.3 (e)

Less:

2. Dividends Dividends Paid on Preferred Stock (e)

(e) 3.

3. Dividends Dividends Paid on Common Stock 170.0 (e)

4. Retained Earnings Earnings 92.3 (e)

Adjustments:

5.

5. Depreciation Depreciation and Amortization Amortization (a) 416.7 444.3 6.

6. Deferred Deferred income Taxes (b) 53.1 45.5 45.5 7.

7. Allowance for Funds Used During Allowance During Construction (Equity (Equity && Borrowed)

Borrowed) (32.9) (45.3)

8. Decommissioning Decommissioning (20.7) (21.8)

9. Deferred Fuel 102.9 32.9 32.9

10. Other balance balance sheet assets and liabilities (31.2) n/a n/a 11.

11. Total Adjustments Adjustments (c) 487.9 456 12.

12. Internal Cash Flow Internal 580.2 (e) 13.

13. Average Average Quarterly Quarterly Cash Flow 145.1 (e)

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

Unit 1 - 29.1%

29.1%

Unit 2 - 29.1%

29.1% (d) (d)

Unit 3 - 29.1%

29.1%

(a) Includes Nuclear Includes Nuclear Fuel Amortization Amortization (b) Includes Change in Includes in unrecognized unrecognized tax benefits benefits (c)

(c) Projected period Projected period excludes forecasted forecasted changes in working changes in capital.

working capital.

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

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

confidentiality.

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

Ch~r~~a~

Chris N. Froggattr Vice President Vice C-troogg'ý

//

President and Treasurer Treasurer ofof APS APS Date: 7/35/07 IP NRCAttachment NRC_Attachment 22 3.xls 3.xls