ML20210Q387
| ML20210Q387 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/09/1986 |
| From: | Koester G KANSAS GAS & ELECTRIC CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| RTR-REGGD-09.004, RTR-REGGD-9.004 KMLNRC-86-085, KMLNRC-86-85, NUDOCS 8605140064 | |
| Download: ML20210Q387 (6) | |
Text
c, KANSAS GAS AND ELECTRIC COMPANY THE ELECTFbC COMPANY May 9, 1986 OLENN L MOESTER W*CE P#EODENT hvCLE A#
Mr. Harold R. Dentcn, Director Offi of Nuclear Ibactor Ibgulation U.S. Nuclear Regulatory Commission Washingtcn, D.C.
20555 KMLNRC 86-085 Re:
Docket No. S'IN 50-482 Subj:
Guarantee of Payment of Deferred Premium, 10 CFR 140.21
Dear Mr. Dentcn:
Pursuant to the requirenents of 10 CFR 140.21, the owners of Wolf Creek Generating Staticn, Unit No.1, are providing the attached documentation of their ability to make layment of deferred premiums in an amount of ten millicn dolla rs.
Kansas Gas and Electric Cmpany's porticn of the
..sponsibility is being covered by a Ibvolving Credit and 'Ibrm Loan Ag reement.
Kansas City Power and Light Cmpany (KCPL) and Kansas Electric Power Cooperative, Inc. (KEPCo), have elected to provide an annual rtified financial statement for their share of the responsibility.
'Ihe financial statements were prepared in accordanm with Hegulatory Guide 9.4.
If you have any questions ccn rning this sutmittal please ccntact me or Mr.
O. L. Maynard of my staff.
Yours very truly, W
Glenn L. Koester Vim President - Nuclear GLK:see D1 closures cc: PO'Ccnnor (2), w/a JCunnins, w/a 8605140064 860509 i
PDR ADOCK 05000482 I
PDR f;/)
Lt i
201 N. Market - Wichsta, Kansas - Mail Address: PO. Box 208 I Wichita, Kansas 67201 - Telephone: Area Codo (316) 2616451
Kansas Gas & Electric Company Guarantee of Payment of Deferred Premium 10CFR 140.21 Kansas Gas & Electric Company's (KG&E) 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. KG&E entered into a revolving Credit and Term Loan Agreement with a group of domestic banks, for whom Bankers Trust Company 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 company to insure the payment of deferred premiums, if necessary.
A copy of the Revolving Credit and Loan Agreement is available upon request.
APPROVED M
ViCE PRES.. NUCLEAR l
~ ~ ;,t.
KANSAS CITY POWER & LIGHT COMPANY 1330 BALTIMORE AVEP4UE P. O. BOX 679 KANSAS CITY, MISSOURI 64141 NEIL ROADMAN May 7, 1986 co - ou==
The attached statement for Kansas City Power & Light Company (Company) shows that internal projected cash flow for the year 1986 is calculated as $100.2 million and on an average quarterly basis is $25.0 million. The statement also shows that the maximum total contingent liability for previous assessments against the Company under Price-Anderson will be $4.7 million.
In accordance with the projections, 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 milllion with major commercial banks. No short term borrowings were outstanding at March 31, 1986. The Company has a $200 million Loan Agreement with foreign banks of which $100 million was available at March 31, 1986. 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 cash needs for construction to be $72 3 million to $100.0 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.
O r
Controller NAR:cc attach
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4 4
1 KANSAS CITY POWER & LIGHT COMPANY INTERNAL CASH FLOW (Dollars in Thousands) 4 4
1985 Projected Cash i
Actual Flow For 1986 Net Income after Taxes
$155,121
$96,000 4
Less Dividends Paid 02.009 85.800 Retained Earnings 62.218 10.200 i
Adjustments:
Depreciation and Amortization 70,239 105,300 1
Deferred Income Taxes and Investment Tax Credits 60,163 61,300 Allowance for Funds Used During Construction (110,652)
(500)
Deferred Wolf Creek Expenses and Carrying Costs (56,866)
(59,400)
Phase-in deferrals (16.700) i Total Adjustments (17.116) 90,000 1
Internal Cash Flow 1251Q2 M
l Average Quarterly Cash Flow A 6.276 125.212 Percentage Ownership in All
{
Operating Nuclear Units Wolf Creek 47 005 Maximum Total Contingent Liability 1,1.222 r
D
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CERTIF I CATION I, Richard M. Tyler, am Director of Finance and i
Accounting for Kansas Electric Power Cooperative, Inc.; I have j
j reviewed the 1986 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 financial i
position of Kansas Electric Power Cooperative, Inc., as 1
indicated.
,l Signed: [
ach/ L G/
\\,f Dated:
u91(cu, T'/ 7(t f
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I i
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e, Kansas Electric Power Cooperative, Inc.
1986 Internal Cach Flow Projection For Wolf Creek Nuclear Power Station (Dollars in Thousands) 1965 1996 Prior Year Projection Year Actual Total Total Net inccie After Taxes
($1,977,542)
($5,421,399)
Less Dividends Paid
$0
$0 Retainec Earnings
($1,977,542)
($5.421,399)
Adjustments:
Depreciation and Amartization
$1,647,673
$7,897,573 Deferred Income taxes and Ir.vestcent tax Credits 50
$0 Allewance for Funds
'Js ed Cur ing Cons t r uction
$0
$0 Total Adjustments
$1,647,673
$7.897,573 Internal Cast Flow
($329,869)
$2,476,174
=
=
Average Guarterly Cash Flow
($82,467)
$619,044
=
=
Percentage Ownershio in All Ocerating Nuclear Units Walf Creek Generating Station Unit No.1 6.007 Maximam :ctal Ccntingent Liabilliv
$600,000 (1)
(1) HEPCo's share of NRC's contingent reserve precium liability.
.