ML20153H037
| ML20153H037 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/03/1988 |
| From: | Withers B WOLF CREEK NUCLEAR OPERATING CORP. |
| To: | Murley T Office of Nuclear Reactor Regulation |
| References | |
| WM-88-0117, WM-88-117, NUDOCS 8805120097 | |
| Download: ML20153H037 (6) | |
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i W6) NUCLEAR OPERATING LF CREEK Bart D Withers Pres. dent and CNef Execuove Omeer May 3, 1988 WM 88-0117 Dr. Thomas E. Murley, Director Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555
Subject:
Docket 50-482:
Guarantee of Payment of Deferred Premiums, 10 CPR 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 Cas and Electric Company's portion of the responsibility is being 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 responsibility.
If you have any questions concerning this submittal please contact me or Mr. O. L. Maynard o f my staf f.
Very truly yours,
^
1-Bart D. Withers President and Chief Executive Officer BDW/jad Attachment cc:
B. L. Bartlett (NRC), w/a R. D. Martin (NRC), w/a P. W. O'Connor (NRC), 2 w/a
' I on Box 411/ Burlington, KS 66839 / Phone: (316) 364 8831 8805120097 880503 PDR ADOCK 05000482 An Ecual Orportunny Employer M F HCVET '
I DCD
. Attachment to WM 88-0117 Page 1 of 5 KANSAS CAS AND ELECTRIC COMPANY Guarantee of Payment of Deferred Premium 10CFR140.21 Kansas Gas and Electric Company's (KG6E) share of the $10 million for "guarantee of payment of deferred premiums" corresponds to our percentage ownership of the Wolf Creek Generating Station (47%), which amounts to $4.7 million. KG6E entered into a revolving Credit and Term Loan Agreement with a group of domestic banks, for whom Morgan Guaranty of New York City acts as agent. KG6E currently has a $100 million unused balance until approximately December 19, 1992, as a source of long-term funding. Of this amount, $4.7 million is being held in reserve by the Company to insure the payraent of deferred premiums, if necessary.
A copy of the Revolving Credit and Loan Agreement is available upon request.
k APFROVED j'/
Tr f/d[Aeaure DATE i i v
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. Attachment to WM 88-0117 Page 2 of 5 KANSAS CITY POWER & LIGHT COMPANY
]
13 3v B A LTW O R E AV E N U E pO BOE 410679 KANSAS CITY, MISSOURI 64l4196 9 March 28, 1988 1
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The attached statement for Kansas City Power & Light Company (Company) shows that internal projected cash flow for the year 1988 is calculated as $150.6 million and on an average quarterly basis is $37.6 million.
The statement also shows thet the Company's maximum total contingent liability will be
$4.7 million for "guarantae of payment of deferred premiums" under Secondary Financial Protection (SFP).
In accordaace with the projections, it is expected that the Company's cash flow would be sufficient to cover the assessment under SFP.
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 $100 million with major commercial hanks, along with $100 million of non-committed lines-of-credit available with major commercial banks.
Short-term borrowings outstanding at February 29, 1988 j
under the committed and non-committed lines-of-credit are $22 million and
$24 million, respectively.
The Company has a $200 million Loan Agreement i
with foreign banks of which $65 million was available at February 29, 1988.
These credit ratings and credit arrangements provide for the means to raise additional capital in the amounts which may be required.
)
l The Company has no generating plant under construction and expects cash needs for construction tu be $99.9 million to $116.4 million per year during the next five years.
The 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.
{} OT Sw g
Controller NAR: pas attach
Attachment to WM 88-0117 8
Page 3 Of 5 KANSAS CITY POWER & LIGHT COMPANY 1988 INTERNAL CASH FLOW PROJECTION FOR WOLF CREEK NUCLEAR POWER STATION (Dollars in Thousands) 1987 Projected Cash Actual Flow for 1988 Net Income after Taxes
$103,982 Less Dividends Declared 74,658 Retained Earnings 29,324 Adjustments:
Depreciation and Amortization 97,016 Deferred Income Taxes and Investment Tax Credits 51,285 Allowance for Funds Used During Construction (20)
Amortization - Deferred Wolf Creek Costs 9,500 Deferred Wolf Creek Costs (8,700)
Phase-in deferrals (14,866)
Total Adjustments 134,215 Internal Cash Flow
$163,539 S150,551*
Average Quarterly Cash Flow
$ 40,885 S 37,638 Percentage Ownership in All Operating Nuclear Units Wolf Creek 47.00%
Maximum Total Contingent Liability
$ 4,700 Projected income information is considered confidential but will be provided if necessary upon request.
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D Y'.-Attachment to WM 88-0117
-Page 4'of 5 CERTI FICAT ION I, Richard M.
Tyler, am Director of Finance and Accounting for Kansas Electric Power Cooperative, Inc.; I have reviewed the 1988 Internal Cash Flow Projection for Kansas Electric Power Cooperative, Inc. and certify to the best of my knowledge and belief that it accurately reflects the finanial-position of Kansas-Electric Power Cooperative, Inc., as indicated.
Signed:
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...Attachmeht to WM 88-0117-Pags 5'of 5-Kansas Electric Power Cooperat'ive, Inc.
1988 Internal' Cash Flow Projection 1987-1988 Prior Year Projection Year Actual Total' Total
- Net Income Af ter Taxes
($1,087,960)
$99,116 Less Dividends Paid 40
$0 Retained Earnings
($1,087,960)
$99,116 Adjustments:
Depreciation and Amor tization -
$2,426,436
$2,733,104 Def erred Income Taxes and
{
Income Tax credits
$0
$0 Allowance for Funds Used During Construction 40,
$0 Total Adjustments 42,426,43 42,733,104 Internal Cash Flow
$1,338,476
$2,832,220 Average Quarterly Cash Flow 4334,619 4708,055 Percentage Owner ship I
in All Operating Nuclear Units Wolf Creek Generating Station Unit ~No. 1 6.00%
Maximum: Total Contingent Liability
$600,000 (1) l i
(1) KEPCo's share of NRC's contingent reserve premium liability.
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