ML20215L927
| ML20215L927 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/08/1987 |
| From: | Bailey J WOLF CREEK NUCLEAR OPERATING CORP. |
| To: | NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM) |
| References | |
| ET-87-0177, ET-87-177, NUDOCS 8705130009 | |
| Download: ML20215L927 (6) | |
Text
WedLF CREEK NUCLEAR OPERATING CORPORATION May 8, 1987 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C.
20555 Letter: ET 87-0177 Re:
Docket No. 50-482 Subj:
Guarantee of Payment of Deferred Premiums, 10 CFR 140.21 Gentlemen:
Pursuant to the requirements of 10 CFR 140.21, the owners of Wolf Creek Generating Station, Unit No. 1, are providing the enclosed 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 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 of my staff.
Very truly yours, l41h bl 1 John A. Bailey Vice-President Engineer ng and Technical Services JAB:Jad Enclosure cc: P0'Connor (2)
JCummins RMartin 8705130009 870S08 PDR ADOCK 0500 2
- c PO. Box 411/ Burhngton. KS 66839 / Phone: (316) 364-8831 g[
An EtJ optery Employer M F %YET
O Enclosure t'o ET:87-0177 Paga 1 of.5 May 8,1987 KANSAS GAS AND ELECTRIC COMPANY
-. Guarantee of Payment of Deferred Premium 10CFR140.21 Kansas Gas and 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 ant. 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 $50 million unused balance until approximately May 31, 1991, 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.
i A copy of the Revolving Credit and Loan Agreement is available upon request.
APPROVED Ju
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Tr(asdrer i
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Enclosuro to ETJ87-0177 Page 2 of-5 May 8,1987 KANSAS CITY POWER ~& LIGHT COMPANY 433o BALTIMORE AVENUE P. O. Box 679 KANSAS CITY. MISSOURI 64141 N EM. ROAD MAN April 1, 1987 CO* STROLLER
- The attached statement for Kansas City Power & Light Company (Company) shows that internal projected cash flow for the year 1987 is calculated as $158.3 million and on an average quarterly basis is. $39.6 million.
The statement also shows that the maximuin 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
$200 million with major commercial banks.
Short-term borrowings outstanding at March 31, 1987 were $76 million.
The Company has a $200 million Loan Agreement with foreign banks of which $100 million was available at March 31, 1987.
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 $84.9 million to $122.8 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.
-exf Controller NAR:j er attach l
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..z Enclosure to ET:87-0177 Pagr3 of 5-
- May 8, -1987 -
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E' KANSAS CITY POWER & LIGHT COMPANY INTERNAL-CASH FLOW '
(Dollars in Thousands) 1986 Projected Cash Actual Flow for 1987 Net Income af ter Taxes
$106,458 Less Dividends Declared 84,052 Retained Earnings
'22,406 Adjustments:
Depreciation'and Amortization 102,674 Deferred Income Taxes and Investment Tax credits 66,581
. Allowance for Funds Used During
. Construction.
1,524 Amortization - Deferred Wolf Creek and Iatan Costs
- Deferred Wolf Creek Expenses and Carrying ~ Costs (45,311)
Fhase-in deferrals (16,714)
Total' Adjustments 108,754 Internal Cash Flow-
$131,160
$158,291*
Average Quarterly Cash Flow-
$ 32,790
$ 39,573 Percentage Ownership in All
-Operating Nuclear Units Wolf Creek 47.00%
Maximum Total Contingent Liability
$ 4,700 t
Projected income information is considered confidential but will be provided j
if necessary upon request.
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Enclosur@'to ET 87-0177 Page 4'of 5 f l May 8,1987 '
c, s
CERTI FICATION
/
I, Richard M. Tyler, am Director of Finance and Accounting for Kansas Electric Power Cooperative, Inc.;
I have reviewed the 1987 Internal Cash Flow Projection for Kansas Electric Power l
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-indicated.
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Signed:
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Dated:
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F 87-0177 Pago 5 of 5
~ Enclosure to ET
- 1Phy 8, 1987 L
p-Kansas Electric Power Cooperative, Inc.
1987 Internal Cash Flow Projection 1986 1987 Prior Year Projection Year Actual Total Total Net Income After Taxes
($ 2,476,13 4 )
($615,718)
Less Dividends Paid
$0
$0 Retained Earnings
($2,476,134)
($615,718)
Adjustments:
Depreciation and Amortization
$6,398,241
$3,165,842 Deferred Income Taxes and Income Tax Credits
$0
$0 Allowance for Funds Used During Construction 80
$0 Total Adjustments
$6,398,241 43,165,842 Internal Cash Flow
$3,922,107
$2,550,124 Average Quarterly Cash Flow
$980,527
$637,531 Percentage Ownership in All Operating Nuclear Units Wolf Creek Generating Station Unit No. 1 6.00%
l Maximum Total Contingent Liability
$600,000 (1)
(1)
VPPCo's share of NRC's contingent reserve premium liability.
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