ML20138M617
| ML20138M617 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 10/28/1985 |
| From: | Koester G KANSAS GAS & ELECTRIC CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| KMLNRC-85-240, NUDOCS 8511040151 | |
| Download: ML20138M617 (8) | |
Text
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KANSAS GAS AND ELECTRIC COMPANY T*E E LE CT AC COMPANY GLENN L nOESTEft v4Epettrotut m A tae e
October 28, 1985 Mr. Harold R.
Denton, Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C.
20555 KMLNRC 85-240 Re:
Docket No. STN 50-482 Subj: Guarantee of Payment of Deferred Premium, 10 CFR 140.21
Dear Mr. Denton:
Pursuant to the requirements of 10 CFR 140.21, the owners of the Wolf Creek Generating Station, Unit No.1, are providing the attached documentation of their ability to make payment of deferred premiums in an amount of $10 Million. Kansas Gas and Electric Company's portion of the responsibility is being covered by a Revolving Credit and Term Loan Agreement. Kansas City Power and Light Company (KCPL) and Kansas Electric Power Cooperative, Inc. (KEPCo), have elected to provide an annual certified financial statement for their share of the respon-sibility. The financial statements were prepared in accordance with Regulatory Guide 9.4 and the information was also combined into one table.
Yours very truly, GLK:bb Enc.
xc:PO'Connor (2), w/a JCummins, w/a WKCadman (KG&E)
AJDoyle (KCPL)
Cross (KEPCo) pu2 nas Bu8lh2
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201 N. Market - Wictuts, Kansas - Mail Address: RO. Box 208 i Wichita. Kansas 67201 - Telephone: Area Code (316) 261-6451
Attachment to KMLNRC 85-240 LIST OF ENCLOSURES TO KMLNRC 85-Kansas Gas & Electric Company Guarantee of Payment of Deferred Premium 10CFR140.21 1985 INTERNAL CASH FLOW PROJECTION for Wolf Crock Generating Station (KCPL and KEPCO information combined)
Kansas City Power and Light Company Cash Flow Certification Kansas Electric Power Cooperative, Inc.
Cash Flow Certification 1
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- -to KMLNRC: 85-240 ~
Kansas Gas & Electric Coupany Guarantee of Paynent of Deferred Praniun 10CFR 140.21 Kansas Gas & Electric Conpany's (KG&E) share of the $10 million for
" guarantee of payment of deferred premiuns" corresponds to our percentage I
ownership of the Wolf Creek Generating Station (47%), which amounts to S4.7 million. KG&E entered into a Revolving Credit and Term Loan Agreenent with a group of donestic banks, for whan Bankers Trust Canoany of New York City acts as Agent. KG&E currently has a $150 million unused balance until May 31, 1987, as a source of long-term funding. Of this amount, $4.7 million is being held in reserve by the conpany to insure the paynent of deferred l
preniums, if necessary.
A copy of the Revolving Credit and Term Loan Agreement is available upon request.
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_ to KMLNRC 85 240 1985 INTERNAL CASH FLOW PROJDNION FOR WOLF CREEK GENERATING STATION (IN THOUSANDS OF DOLLARS)
Prior Year Actual (1984)
Projection Year (1985)
KCP&L*
KEPCo**
KCP&L*
KEPCo**
Net Incona Af ter Taxes
$ 151,441 (983)
$ 163,900 508 Less Dividends Paid 89,221 104,877 Retained Earnirgs 62,220 (983) 59,023 508 Adjustments:
Depreciation and Amortization 47,561 31 117,985 7,524 Deferred Inccme Taxes and Investment Tax Credit 61,900 77,731 Allowance for Funis Used During Construction (134,365)
(1,842)
Deferred Charge Inccme (75,336)
Total Adjustments (24,904) 31 118,538 7,524 Internal Cash Flow S 37,316 S
(952)
S 177,561 S 8,032 Average Quarterly Internal Cash Flow 9,329 (238)
S 44,390 S 2,008 Percentage Ownership Wolf Creek Generating Station 47%
6%
Maximtrn Total Contingent Liability 4,700 600
- Kansas City Power & Light Conpany
- Kansas Electric Power Cooperative, Inc.
(information rounded to nearest thousand) to KMLNRC 85 240 K ANSAS CITY POWER & LIGHT COMPANY 1330 BALTIMORE AVENUE P O BOX 679 KANSAS CITY. MISSOURI 64141 N Ell. ROAD M AN October 2, 1985
' ~ ' " " "
statement for Kansas City Power Light Company The attached shows that internal projected cash flow for the year after (Company) commercial operations of Wolf Creek (projection year) is calculated as $178 million and on an average quarterly basis is $44 million.
The statement also shows that the maximum total contingent liability for previous assessments against the Company under P rice-Ande rson will be $4.7 million.
are based on the company's proposed rate increase The projections We expect that filings with the Commissions in Kansas and Missouri.
the allowed rate relief will be less than our requested filings and thus this projection of cash flow of $177 million will be lower.
- However, it is expected that the Company's cash flow would be sufficient to cover the assessment under Price-Anderson.
Furthermore, the Company's credit ratings allow access to the capital markets--both long-term and short-term--adequate to fund the maximum $4.7 million assessment.
In addition the Company has short term committed lines of credit totaling $150 million with major commercial banks and as of September 30, 1985 has outstanding borrowings totaling only $7 million under these lines.
The Company a $200 million Loan Agreement with foreign banks of which $125 has million was available at September 30, 1985.
These credit ratings and credit arrangements provide for the means to raise additional capital in the amounts which may be required.
The Company has no generating plant under construction and expects The cash needs for construction to be under $100 million per year.
Company could, if necessary, delay certain of these construction Costs.
The undersigned certifies that the foregoing memorandum with respect to Kansas City Power & Light Company projected cash flow for the projection year is true and correct to the best of his knowledge and belief.
O 3
m& u f R~. A.~
Controller NAR:cc attach N AR9-8.6 s
. to KMLNRC 85-240 KANSAS CITY POWER & LIGHT COMPANY 1985 INTERNAL CASH FLOW PROJECTION FOR WOLP CREEK NUCLEAR POWER STATION (Dollars in Thousands)
Projection Prior Year Year Actual Total Total f
Not Income after Taxes
$151,441
$163,900 Less Dividends Paid 89,221 104,877 Retained Earnings 62,220 59,023 Adjustments:
Depreciation and Amortization 47,561 117,985 Deferred Income Taxes and Investment Tax Credits (410.1, 411.1, 411.4) 61,900 77,731 Allowance for Funds Used During Construction (419.1, 432)
(134,365)
(1,842)
Deferred Charge Income (75.336) l Total Adjustments (24,904) 118,538 Internal Cash Flow j,g}(( gl}7;[gl Average Quarterly Cash Flow j,,gg}gg j,ffg}gg Percentage Ownership in All Operating Nuclear Units Wolf Creek 47.00% Maximum Total Contingent Liability j,,fg}QO l l 1 l l l l
. to KMLNRC 85-240 I ) s 1 i l i i CERTI FICATION i 1 i I, Richard M.
- Tyler, am Director of Finance and I
Accounting for Kansas Electric. Power Cooperative Inc.;,I have r ) reviewed the 1985 Internal Cash Flow Projection for Kansas t Electric Power Cooperative, Inc. and certify to the best of my knowledge and belief that it accurately reflects the financial position of Kansas Electric Power Cooperative, Inc., as l indicated, i 1 t 9 Signed: /,/// i 7 l nated: 9/w/rr f I ( i I l i I 1 I I i i i i l l~ to KMLNRC 85-240
- aes3s E ectric G: war Cco;eratae 1965 :niernal Cas* !cw 8re;e::t:>
- ' : : : reek Nat. ear ?cwer Stat:cn ic84 1C85 Frier Year Projectic Year Act.al Total Total Net In:o:e After Taxes
($?53,169) 1507,615 Less Civi: ends Pai: O C Retaired Earnin;s ($983,169) 5507,615 Adjustaents: Secreciatien and Aecrti:att:r. $20,799 $7,524,177 Deferred In:::e Taxes and
- evest ent Tax Cre:::s O
C Allecance ist Funds Used C. ring Censtructice 0 0 Ictal Adjusteen;s $12.79C 57,524, Internal Cash F!c. (1752,3701 15.G31,772
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