ML101580451
| ML101580451 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 04/29/2010 |
| From: | Stull A Wolf Creek |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| CT 10-0032 | |
| Download: ML101580451 (8) | |
Text
W4LF CREEK 'NUCLEAR OPERATING CORPORATION Annette F. Stull Vice President and Chief Financial Officer April 29, 2010 (620 364-4004 (620) 364-4017 facsimile anstull@wcnoc.com CT 10-0032 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 seventeen million five hundred thousand dollars, as determined by 10 CFR 140.11 (a)(4).
Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary..ofWestar Energ," 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 G. B. Miller (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 An Equal Opportunity Employer M/F/HCNET
March 30, 2010 Mr. Todd N. Laflin Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Todd:
Pursuant to the requirements of 10 CFR 140.21(e), Kansas City Power & Light Company, is providing the attached audited Consolidated Statements of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $8.23 million.
The undersigned certifies that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2009 is true and correct to the best of their knowledge and belief.
Sincerely, Lori Wright Vice Presidentand Controller attachment KCP&L P.O. Box 418679 Kansas City. MO 64141-9679 1-888-471-5275 toll-free www.kcpl.com
KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2009 Cash Flows from Operating Activities (millions)
Net income S 128.9 Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 229.6 Amortization of:
Nuclear fuel 16.1 Othc:r 19.0 Deierred income taxes, net (38.2)
Investment tax credit amortization (1.4)
Fair vdluc impacts fiom interest rate hedging Other operating activities (Note 3) (66.1)
Net cash from operating activities 287.9 Cash Flows from Investing Activities Utility capital expenditures (626.5)
Allowance for borrowed funds used during construction (31.1)
Purchases of nuclear decommissioning trust investments (99.0)
Proceeds from nuclear decommissioning trust investments 95.3 Net money pool lending (6.0)
Other investing activities (0.6)
Net cash from investing activities (667.9)
Cash Flows from Financing Activities Issuance of long-term debt 413.2 Repayment of long-term debt Net change in short-term borrowings (193.6)
Net money pool borrowings 0.9 Dividends paid to Great Plains Energy (72.0)
Equity contribution from Great Plains Energy 247.5 Issuance tecs (4.0)
Net cash from financing activities 392.0 Net Change in Cash and Cash Equivalents 12.0 Cash and Cash Equivalents at Beginning of Year 5.4 Cash and Cash Equivalents at End of Year $ 17.4
West-ar Energy.
March 30, 2010 Mr. Todd N. Laflin Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Todd:
Pursuant to the requirements of 10 CFR 140.21 (e), we are providing the attached audited 2009 Consolidated Statements of Cash Flows, with independent auditor's opinion, for Kansas Gas & Electric. The statement is provided to access Kansas Gas & Electric's ability to make payment of its share of deferred premiums in an amount of $8.23 million.
Sincerely, Lee Wages Vice President, Controller Westar Energy, Inc.
attachment 818 S Kansas Ave / PO Box 889 / Topeka, Kansas 66601-0889
INDEPENDENT AUDITORS' REPORT To the Board of Directors of Kansas Gas and Electric Company Topeka, Kansas We have audited the accompanying balance sheets of Kansas Gas and Electric Company (the "Company"), a wholly-owned subsidiary of Westar Energy, Inc., as of December 31, 2009 and 2008, and the related statements of income, shareholder's equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards as established by the Auditing Standards Board (United States) and in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing-audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the financial position of Kansas Gas and Electric Company at December 31, 2009 and 2008, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP Kansas City, Missouri February 25, 2010 I
KANSAS GAS AND ELECTRIC COMPANY STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 31.
2009 20 CASH FLOWS FROM (USED IN)OPERATING ACTIVITIES:
Net income ........................................................................................ S 55,879 S 52,947 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization................................................................ 117,547 98,212 Amortization of nuclear fuel .................................................................. 16,161 14,463 Amortization of deferred gain from sale-leaseback.......................................... (5,495) (5,495)
Amortization of corporate-owned life insurance ............................................ 17,449 15,576 Net deferred taxes .............................................................................. 9,127 14,288 Net changes in energy marketing assets and liabilities ...................................... 4,138 (3,900)
Allowance for equity fundis used during construction....................................... (1,741) (4,185)
Changes in working capital items:
Accounts receivable, net. ..................................................................... (17,017) 5,832 Inventories and supplies ....................................................................... 4,750 1,494 Prepaid expenses and other ................................................................... (24,396) (62,211)
Accounts payable............................................................................... 8,957 (5,180)
Other current liabilities......................................................................... 8,974 (22,021)
Changes in other assets ..:.......................................................................... (10,613) 1,036 Changes in other liabilities ......................................................................... (5.965) ( I~4 Cash flows from operating activities ............................................... 177.755 100.672 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment...................................................... (172,435) (250,416)
Purchase of securities within the nuclear decommissioning wrus fuind......................... (64,016) (210,599)
Sale of securities within the nuclear decommissioning trust fund ............................... 61,096 221,613 Investment in corporate-owned life insurance...........*......................................... (17,724) (18,720)
Proceeds from investment in corporate-owned life insurance .................................... 798 26,202 Advance to parent ............... ........ ........................................................ (222,615) 10,250 Other investing activities ........................................................................... 2,920 (11,013)
Proceeds from other investments ................................................................... - -
Cash flows used in investing activities ............................................ (41.972~ (232.683)
CASH FLOWS FROM (USED IN FINANCING ACTIVITIES:
Proceeds from long-term debt..................................................................... 347,507 247,087 Retirements of long-term debt..................................................................... (50,000) (100,000)
Borrowings fr-om parent ............................................................................. - 22,403 Repayment of borrowings to parent............................................................... (22,403) -.
Borrowings against cash surrender value of corporate-owned life insurance................... 10,299 64,255 Repayment of borrowings against cash surrender value of corporate-owned life insurance ....................................................................................... (1,182) (26,734)
Dividends to parent company..................................................................... (0,0 (75,000)
Cash flows from financing activities ............................................... 234.22 1 132011 NET INCREASE INCASH AND CASH EQUIVALENTS .......................................... - -
CASH AND CASH EQUIVALENTS:
Beginning of period. ............................................................................... ..
End of period.......................................................................................
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID FOR:
Interest on financing activities, net of amount capitalized.................................S$ 46,539 S 33,941 NON-CASH INVESTING TRANSACTIONS:
Property, plant and equipment additions ................................................... S$ 3,966 S 14,635 The accompanying notes are an integral part of these financial statements.
4
Kansas Electric Power Cooperative, Inc.
April 5, 2010 Mr. Todd N. Laflin Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Todd:
Pursuant to the requirements of 10 CFR 140.21(e), Kansas Electric Power Cooperative, Inc. is providing the attached audited Statement of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $1.5 million.
The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. Cash flow for the year 2009 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 Toudh E- C--i ?4)!
Kansas Electric Power Cooperative, Inc.
Consolidated Statements of Cash Flows Years Ended December 31, 2009 and 2008 2009 2008 Operating Activities Net margin S 9,338,290 $ 5,473,177 Adjustments to reconcile net margin to net cash provided by operating activities Depreciation and amortization 3,889,826 3,794,729 Decommissioning 1,833,811 1,056,613 Amortization of nuclear fuel 2,013,679 1,811,603 Amortization of deferred charges 4,348,006 4,407,592 Amortization of deferred incremental outage costs 4,099,003 3,893,171 Amortization of debt issuance costs 109,275 115,227 Changes in Member accounts receivable (951,170) (1,800,955)
Materials and supplies (84,641) (122,810)
Other assets and prepaid expenses (304,548) (40,657)
Accounts payable 2,049,237 622,581 Payroll and payroll-related liabilities (22,116) 9,625 Accrued property tax 23,038 47,519 Accrued interest payable 11,087 (85,192) {..
Other long-term liabilities 440,601 273,139 Net cash provided by operating activities 26,793,378 19,455,362 Cash Flows From Investing Activities Additions to electric plant (23,937,741) (26,837,946)
Additions to nuclear fuel (2,474,774) (2,070,599)
Additions to deferred incremental outage costs (5,331,381) (6,153,310)
Investments in decommissioning fund assets (2,358,279) (1,133,809)
Investments in National Rural Utilities Cooperative Finance Corporation (6,781,554 ) (1,442,965)
Investments in bond reserve assets (89,996) 27,537 Net cash used in investing activities (40,973,725) (37,611,092)
Cash Flows From Financing Activities Net borrowing (payment) under line of credit agreement (13,178,203) 13,178,203 Principal payments on long-term debt (13,209,153) (11,950,139)
Proceeds from issuance of long-term debt 40,052,226 11,429,000 Net cash provided by financing activities 13,664,870 12,657,064 Net decrease in cash and cash equivalents (515,477) (5,498,666)
Cash and Cash Equivalents, Beginning of Year 634,108 6,132,774 Cash and Cash Equivalents, End of Year $ 118,631 $ 634,108 Supplemental Cash Flows Information Cash paid during the year for interest $ 9,113,960 $ 9,052,958 See Notes to Consolidated Financial Statements 5