ML17129A601

Guarantee of Payment of Deferred Premiums

ML17129A601
Person / Time
Site:	Wolf Creek
Issue date:	05/02/2017
From:	Stull A Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CO 17-0004
Download: ML17129A601 (10)

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.,NUCLEAR OPERATING CORPORATION May 2, 2017 Annette F. Stull Vice President and Chief Administrative Officer co 17-0004 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred Premiums To Whom It May Concern:

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 eighteen million nine hundred sixty-three thousand dollars, as determined by 10 CFR 140.11 (a)(4).

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.

This letter contains no commitments. If you have any questions concerning this matter, please contact me at (620) 364-4004, or Cynthia R. Hafenstine (620) 364-4204.

Sincerely, Annette F. Stull AFS/rlt

Enclosure:

I

• Kansas Gas and Electric Company Consolidated Statements of Cash Flows II Kansas City Power & Light Company Consolidated Statements of Cash Flows Ill Kansas Electric Power Cooperative, Inc. Statement of Cash Flows cc: K. M. Kennedy (NRC), w/e B. K. Singal (NRC), w/e N. H. Taylor (NRC), w/e Senior Resident Inspector (NRC), w/e P.O. Box 411 I Burlington, KS 66839 I Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HC/VET

Enclosure I to CO 17-0004 Kansas Gas and Electric Company Consolidated Statements of Cash Flows (2 pages)

April 17, 2017 Mr. Todd 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 Gas & Electric 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 $8.913 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Gas & Electric Company's cash flow for the year 2016 is true and correct to the best of their knowledge and belief.

Sincerely,

~*-e~

Kevin L. Kongs Vice President, Controller Westar Energy, Inc.

lms attachment 818 S Kansas Ave I PO Box 889 /Topeka, KS 66601-0889 / (785) 575-6300

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i KANSAS GAS AND ELECTRIC COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS I (Dollars in Thousands)

I CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

Year Ended December 31, 2016 2015 I

Net income $ 149,278 $ 132,340 Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 163,407 136,019 Amortization of nuclear fuel 26,714 26,974 II Amortization of deferred regulatory gain from sale leaseback (5,495) (5,495)

Amortization of corporate-owned life insurance 18,098 17,958 Net deferred income taxes and credits 65,377 53,886 Allowance for equity funds used during construction (3,070) (1,684)

Changes in working capital items:

Accounts receivable (6,604) (625)

Fuel inventory and supplies (241) (21,986)

I Prepaid expenses and other Accounts payable Other current liabilities (20,715)

(6,750)

(64,685)

(19,576)

(3,236)

(60,934) l Changes in other assets (17,378) 3,806 Changes in other liabilities 15,302 7,331 Cash Flows from Operating Activities 313,238 264,778 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

I Additions to property, plant and equipment (320,248) (343,672)

I Purchase of securities - trust (46,581) (36,846)

Sale of securities - trust 45,154 35,194 Investment in corporate-owned life insurance (14,648) (14,845)

Proceeds from investment in corporate-owned life insurance 92,279 66,421 I

Advance to parent 6,120 133,985 Other investing activities (3,594) (1,110)

Cash Flows used in Investing Activities (241,518) (160,873)

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CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Proceeds from long-term debt 49,957 I

Proceeds from Jong-term debt of variable interest entity 162,048 Retirements oflong-term debt (50,000)

Retirements oflong-term debt of variable interest entity (187,291) (23,743)

§ Borro¥iillgs against cash surrender value of corporate-owned life insurance 57,850 59,43i II Repayment of borrowings against cash surrender value of corporate-owned life insurance Dividends to parent Cash Flows used in Financing Activities (89,284)

(15,000)

(71,720)

(64,593)

(75,000)

(103,905)

NET CHANGE IN CASH 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 $ 51,514 $ 52,225 9,821 I

• .~ .. Interest on financing activities of variable interest entity 5,587 NON-CASH INVESTING TRANSACTIONS:

Property, plant and equipment additions 69,328 48,101 The accompanying notes are an integral part of these consolidated financial statements.

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1 to CO 17-0004 Kansas City Power & Light Company Consolidated Statements of Cash Flows (2 pages)

April 21, 2017 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 $8.9 million.

• The undersigned certifies that the foregoing memorandum with respect to

. Kansas City Power & Light Company's cash flow for the year 2016 is true and correct to the best of their knowledge and belief. I i

Sincerely, .

jf/_41#1 Steven P. Busser Vice President - Risk Management and Controller attachment KCP&L P.O. Box 418679 Kansas City, MO 64141-9679 1-886-4 71-5275 to I I-free www.kcpl.com

KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2016 Cash Flows from Operating Activities (millions)

Net income $ 225.0 Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization 247.5 Amortization of:

Nuclear fuel 26.6 Other 33.9 Deferred income taxes, net 93.4 Investment tax credit amortization (1.0)

Other operating activities (2.1)

Net cash from operating activities 623.3

. Cash Flows from Investing Activities Utility capital expenditures (418.8)

Allowance for borrowed funds used during construction (5.6)

Purchases of nuclear decommissioning trust investments (31.9)

Proceeds from nuclear decommissioning trust investments 28.6 Other investing activities (23.8)

Net cash from investing activities (451.5)

Cash Flows from Financing Activities Issuance fees (0.2)

Net change in short-tertn borrowings . (47.4) .

Dividends paid to Great Plains Energy (122.0)

Net cash from financing activities (169.6)

Net Change in Cash and Cash Equivalents 2.2 Cash and Cash Equivalents at Beginning of Year 2.3 Cash and Cash Equivalents at End of Year $ 4.5

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• 11 to CO 17-0004 Kansas Electric Power Cooperative, Inc. Statement of Cash Flows (2 pages)

P.O. Box 4877, Topeka, KS 66604-0877 Kansas Electric 600 Corporate View, Topeka, KS 66615 Phone (785) 273-7010 Fax (785) 271-4888 Power Cooperative, Inc. www.kepco.org April 14, 2017 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 Statements of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $1.138 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, lnc.'s. Cash flow for the year 2016 is true and correct to the best of their knowledge and belief.

Sincerely yours, Coleen M. Wells Sr. VP and CFO Enclosure (1)

KANSAS ELECTRIC POWER COOPERATIVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ending December 31, 2016 2015 Cash Flows From Operating Activities Net margin $ 1,932,895 $ 3,281,140 Adjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization 8,173,568 7,976,377 Decommissioning 1,496,722 4,400,516 Amortization of nuclear fuel 3,294,777 3,330,466 Amortization of deferred charges 3,898,956 3,901,324 Amortization or deferred incremental outage costs 2,373,725 2,387,697 Amortization of debt issuance costs 15,391 56,342 Changes in Member accounts receivable (1,590,640) 2,048,341 Materials and supplies 57,909 (253,460)

Other assets and prepaid expense (3,509,895) 1,064,675 Accounts payable 1,340,474 (1, 146,640)

Payroll and payroll-related liabilities (8, 141) (16,170)

Accrued property tax (154,440) (59,425)

Accrued interest payable (46,105) (38,864)

Accrued income taxes 525 (3,564)

Other long-term liabilities 723,753 (244,940)

Prepaid pension cost 131,427 131,428 Deferred revenue 2,600,736 2,778,884 Net cash flows from operating activities 20,731,637 29,594,127 Cash Flows From Investing Activities Additions to electrical plant (10,825,350) (13,317,627)

Additions to nuclear fuel (2,506,622) (1,980,468)

Reductions in deferred charges 340,606 17,720 Additions to deferred incremental outage costs (2,827,500) (3, 170,364)

Investments in decommissioning fund assets (1,666, 711) (617,917)

Proceeds from associated organizations (468,165) 615,915 Investments in bond reserve assets 4,490,786 Proceeds from the sale of property 23,079 39,350 Net cash flows from investing activities (17,930,663) (13,922,605)

Cash Flows From Financing Activities Principal payments on long-term debt (11,457,281) (15,700,763)

Proceeds from issuance of long-term debt 21,229,828 9,887,110 Short term notes payable (1,429,000)

Payments unapplied (5,782,990) (3,324,091)

Net cash flows from financing activities 3,989,557 (10,566,744)

Net increase in cash and cash equivalents 6,790,531 5,104,778 Cash and Cash Equivalents, Beginning of Year 6,307,421 1,202,643 Cash and Cash Equivalents, End of Year $ 13,097,952 $ 6,307,421 Supplemental Disclosure of Cash Flow Information Interest paid $ 8,743,500 $ 9,279,800