ML20042E869

Forwards Documentation of Util Ability to Make Payment of Deferred Premiums

ML20042E869
Person / Time
Site:	Wolf Creek
Issue date:	04/30/1990
From:	Bailey J WOLF CREEK NUCLEAR OPERATING CORP.
To:	Murley T Office of Nuclear Reactor Regulation
References
NO-90-0140, NO-90-140, NUDOCS 9005030297
Download: ML20042E869 (6)

Text

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'4 .l W4pLF CREEK NUCLEAR OPERATING CORPORATION L

John A. Bailey l vm Pro eeni Nudew opersons April 30,1990 NO 90-0140 Dr. Thonias E. Murley,' Director office of Nuclear Reactor 1 Regulation U. S. Nuclear Regulatory. Connaission Washington,'D. C.-20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred' Premiums, 10 CVR 140.21-

Dear Dr. Murley:

Pursuant to the requirements of 10 CFR'140.21, the owners of Wolf Creek Generating' Station are providing.the attached documentation of their ability.

to make payment of deferred premiums in an amount'of ten million dollars.

-Kansas Gas and Electric Company's portion of the responsibility is being i covered by a Revolving Credit and Term Loan Agreement. Kansas' City Power &

Light Company and Kansas Electric' Power Cooperative,- Inc. <have-elected to ,

provide annual certified financial statements :for' their share of the- j responsibility. l l

If you have any questions concerning this submittal; please contact me or. l Mr. O.'L. Maynard of my staff.  !

Very truly yours,

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' John A. Bailey i

Vice President f

j Nuclear Operations = l'  :

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D. ?ersinko (NRC), w/a l D. V. Pickett (NRC), w/a i M. E. Skow (NRC), w/a  ; l e  !

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h P.O. Box 411 / Burlington, KS 66839 / Phone: (316) 364-8831 An Equel opportunity Employer M/F/HcNET

' Attachment to NO 90-0140L

KANSAS GAS AND ELECTRIC CoMPANYb THE ELECTFeC COMPANY <

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KANSAS GAS AND ELECTRIC COMPANY Guarantet of. Payment of Deferred Premium 10CRF140.21 KansasGasandElectricCompany's(KG&E)shareof..the-$10.million for " guarantee of payment of deferred premiums" corresponds -to our percentage ownership of the Wolf Creek Generating Station (47%), :which 1 amounts to $4.7 million.- KG&E entered into a revolving Credit and Term Loan .j

-1 Agreement with a group of domestic banks, for whom Bankers Trust Company of j f New York acts as agent. KG&E currently has a $150 million unused-balance until approximately October 15,-1992, as a source of long-te'rm funding. Of  ;

this-amount, $4.7 million is being held in reserve by the' Company to insure 1 the payment of deferred premiums,.if necess~ary.

A copy of the Revolving Credit and Loan Agreement is available'upon i request.  !

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-APPROVED

-Tr,easurer.

DATE N)F - l[ O78 20' n. uar < - mcuta. xansas - ua assress: no. aox 20e i ucura, xansas er2<d - reiepnonei Area code <ste) 2e t esro .

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. Attachment to NO 90-0140 KANSAS CITY POWER & LIGHT COMPANY

' 133O DALTiMORE AVENUC P o BOX 410679 4

KANSAS CIT % MISSOURI 64141 9679 O - QQ lo March 31', 1990

, Pursuant to the requirements of 10 CFk 140.21, Kansas City Power &- ,

Light Company (Company) is providing the attached statement of their j ability.to make payment of their share of deferred premiums in an .

amount of $4.7 million. This statement shows that internal ,

I projected cash .' flow for the year .1990 is calculated as $149.5 -

million and - on an average quarterly basis is . $37.4 million. In accordance with.the projections,;it is expected that the Company's cash flow would be sufficient to cover the assessment, j

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The undersigned certifies that the foregoing memorandum with respect j to Kansas City Power & Light Company projected cash flow for the l projection year is true and correct to the best of his knowledge ~and belief.

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.;,-.- Attachment t0 N0 90-0140:

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' KANSAS. CITY POWER &' LICHT COMPANY-1990 INTERNAL CASH FLOW PROJECTION

. l FOR WOLF CREEK NUCLEAR POWER STATION : 1 (Dollars'in Thousands). i 1989 Projected Cash j 1 Actual Flow for-1990~ j

-i Net Income after Taxes $10.$ 318

. Leos Dividends Declared 83.681 Retained Earnings .

24'.937-i Acjustments .

Depreciation and Amortization. 96,095 +

, Deferred Income Taxes and Investment Iax Credits 43,493-L Allowance for Funds Used During-Construction .

(1,931)

Amortization - Deferred Wolf Creek Costs 10,366 Deferred Wolf Creek Costs (6,037)

Amortization - Phase-in deferrals '7 072 d

Other Amortizations 2.521 }

'l Total Adjustments 151.579 Internal cash Flow $176.516- $149.521*

1 0 Average Quarterly C3sh Flow 8 44.129- S 37.380 j i

Percentage Ownership in.All  !

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Operating Nuclear Units . Wolf, Creek 47.00%~

Maximum total Contingent Liability S 4~.'700 l.

! 'k Projected income information is considered confidential but'will'be l f provided if necessary upon request, l I'

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,.- Attachment to N0 90-01/0 l

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I,- Richard M. Tyler, am Director, Finance and Accounting for- '!

Kansas Electric Power Cooperative, Inc. , and have! reviewed the 1990 Internal- Cash -Flow Projection for- Kansas Electric Power Cooperative,_Inc. and certify to the best of my knowledge _that it. ~q accurately reflects the financial position of Kansas Electric Power-Cooperative, Inc.,'as indicated. l 4

,f .Yf Signed:

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Dated ; f/9[ko

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'!.ttachment~ to N0 90-0140

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KANSAS ELECTRIC POWER COOPERATIVE, INC.

1990 Internal Cash Flow Projection 1989 1990 Prior Year Projected Actual Total Total ~ -j 1

Net Income After Taxes $ 322,000 $ 69,500 q Less Dividends Paid 0 =0 Retained Earnings- -322,000 69,500-Adjustments:' .

1 Depreciation and Amortization 2,990,885 3,187,900 De terred, Income Taxes and Income, Tax Credits .

0 0;  !

Allowance for Funds Used i During Construction .. d 0-  ; .

2.990.683 3.187.900 i Internal Cash Flow 3.312.G85 3.257.400-Average Quarterly Cash Flow S 828.221 i 814~350 Percentage Ownership in All Operating Nuclear Units Wolf Creek Generating Station No. 1 6.00%-

Maximum Contingent Liability $ '600,000 (1) l (1) KEPCo's Share of NRC contingent reserve premium 11' ability.-

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