ML20134D040

Summary of 960919 Meeting W/Western Resources Re Proposed Takeover of Kansas City Power & Light by Western Resources. List of Attendees Encl

ML20134D040
Person / Time
Site:	Wolf Creek
Issue date:	10/09/1996
From:	Stone J NRC (Affiliation Not Assigned)
To:	NRC (Affiliation Not Assigned)
References
TAC-M95406, NUDOCS 9610110337
Download: ML20134D040 (5)

Text

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ye Ju UNITED STATES  !

g g NUCLEAR REGULATORY COMMISSION e WASHINGTON, D.C. 20555-0001

%.,,,, October 9, 1996 l

LICENSEE: Wolf Creek Nuclear Operating Corporation l l

FACILITY: Wolf Creek Generating Station

SUBJECT:

WESTERN RESOURCES PROPOSED TAKE0VER OF KANSAS CITY POWER AND LIGHT ,

(TAC NO. M95406) l On September 19, 1996, members of the NRC staff met with representatives from Western Resourses to discuss the proposed takeover of Kansas City Power and Light (KCPL) by Western Resources (WR). This proposed takeover has been described as a hostile takeover in that the board of directors of KCPL has not l agreed to the takeover. '

Backaround l

Western Resources currently owns 47 percent of Yolf Creek Generating Station (WCGS) and Kansas City Power and Light owns 47 g rcent of WCGS. The remaining 6 percent is owned by Kansas Electric Power Cooperative, Incorporated. In ,

January,1996, KCPL and Utilicorp, a Missouri based utility, announced their 1 intention to merge. Representatives from these two companies met with the NRC staff to discuss the affect this merger would have on WCGS. Later in 1996, Western Resources made an offer to merge with KCPL. There was a KCPL stockholders meeting in August,1996, at which a vote was taken on the proposed merger of KCPL and Utilicorp. Less than 50 percent of the stockholders voted to approve the merger. At that point, the merger agreement between KCPL and Utilicorp was terminated.

Summary The representative from WR gave a brief overview of the company and their activities associated with the takeover of KCPL. WR has made an offer to the KCPL shareholders for a stock exchange (WR stock for KCPL stock) that is about

$31.00 per share. That offer is currently before the shareholders and is due to expire in mid October 1996 and may be extended. It is common for these types of offers to be extended.

If WR is successful in its takeover bid, KCPL would be absorbed into the WR corporate structure. KCPL would cease to exist as a separate company. This would mean that WR would own 94 percent of WCGS. WCGS would account for about 24 percent of the combined company's assets.

The merger would have to be approved by the States of Kansas and Missouri, the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.

The merger would also have to be approved by the shareholders of KCPL and WR.

It is projected that the merger could be closed as soon as the second half of 1997.

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The affect on WCGS would be minimal. The combined company would be responsible for 94 percent of the decommissioning funds. There would be no foreign ownership as a result of this merger. WR expects to file with the NRC in the near future, before closure of the merger. Another meeting with the

NRC staff was suggested either just before or just after filing the

, application with the NRC. The staff stressed the need to work with the i

licensing staff at WCGS in preparing the submittal as a result of this merger. )

ORIGINAL SIGNED BY KRISTINE M. THOMAS

. James C. Stone, Senior Project Manager 1

Project Directorate IV-2 Division of Reactor Projects III/IV l Office of Nuclear Reactor Regulation  ;

l Docket No. 50-482 DISTRIBUTION:

~ Docket File *

Attachment:

Attendance List PUBLIC l PDIV-2 Reading

• l cc w/att: See next page FMiraglia l RZimmerman JRoe EAdensam (EGA1)

WBateman JStone*

EPeyton OGC*

ACRS*

EJordan JDyer, Region IV WJohnson, Region IV

• Hard copies .

l l

DOCUMENT NAME: WC91996.MTS OFC PDIV-2/PM PDIV-2/LA NAME JSho'n"eTe EN DATE 10/9/96 10/C l/96 0FFICIAL RECORD COPY l

l

. The affect on WCGS would be minimal. The combined company would be responsible for 94 percent of the decommissioning funds. There would be no foreign ownership as a result of this merger. WR expects to file with the NRC in the near future, before closure of the merger. Another meeting with the NRC staff was suggested either jtst before or just after filing the application with the NRC. The staff stressed the need to work with the licensing staff at WCGS in preparing the submittal as a result of this merger.

h MhM.g James C. Stone, Senior Project Manager Project Directorate IV-2 Division of Reactor Projects III/IV Office of Nuclear Reactor Regulation Docket No. 50-482

Attachment:

Attendance List cc w/att: See next page

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cc w/att:

Jay Silberg, Esq. Vice President Plant Operations Shaw, Pittman, Potts & Trowbridge Wolf Creek Nuclear Operating Corporation 2300 N Street, NW P. O. Box 411 Washington, D.C. 20037 Burlington, Kansas 66839 i

Regional Administrator, Region IV Supervisor Licensin5 U.S. Nuclear Regulatory Commission Wolf Creek Nuclear Operating Corporation 611 Ryan Plaza Drive, Suite 1000 P.O. Box 411 Arlington, Texas 76011 Burlington, Kansas 66839 ,

i Senior Resident Inspector U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Resident Inspectors Office P. O. Box 311 8201 NRC Road Burlington, Kansas 66839 Steedman, Missouri 65077-1032 J

Chief Engineer Supervisor Regulatory Compliance Utilities Division Wolf Creek Nuclear Operating Corporation Kansas Corporation Commission P.O. Box 411 3 1500 SW Arrowhead Road Burlington, Kansas 66839 8 Topeka, Kansas 66604-4027 Mr. Neil S. Carns

. Office of the Governor President and Chief Executive Officer State of Kansas Wolf Creek Nuclear Operating Corporation Topeka, Kansas 66612 Post Office Box 411 Burlington, Kansas 66839 J Attorney General Judicial Center 301 S.W. loth 2nd Floor l

4 Topeka, Kansas 66612 i' County Clerk Coffey County Courthouse Burlington, Kansas 66839 2 Public Health Physicist l Bureau of Air & Radiation j Division of Environment j Kansas Department of Health and Environment Forbes Field Building 283 Topeka, Kansas 66620

]

ATTACHMENT 1 ATTENDANCE LIST MEETING WITH WESTERN RESOURCES SEPTEMBER 19, 1996 KANSAS CORPORATION COMISSION L. Holloway WESTERN RESOURCES. INC.

J. Rosenberg LeB0EUF. LAMB. GREENE & MacRAE '

S. Behrends j EC J. Stone W. Lambe W. Bateman R. Wood

! S. Hom S. Uttal 4

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