WM 02-0017, Guarantee of Payment of Deferred Premiums
| ML021370375 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/06/2002 |
| From: | Maynard O Wolf Creek |
| To: | Collins S Office of Nuclear Reactor Regulation |
| References | |
| WM 02-0017 | |
| Download: ML021370375 (7) | |
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W!'YLF CREEK 'NUCLEAR OPERATING CORPORATION Otto L. Maynard President and Chief Executive Officer MAY 6 2002 WM 02-0017 S. J. Collins, Director Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555
Subject:
Docket No: 50-482: Guarantee of Payment of Deferred Premiums, 10 CFR 140.21
Dear Mr. Collins:
Pursuant to the requirements of 10 CFR 140.21, each operating reactor licensee is required to maintain financial protection through guarantees of payment of deferred premiums. The owners of Wolf Creek Generating Station are providing the enclosed documentation of their ability to pay deferred premiums in the amount of ten million dollars, as required by 10 CFR 140.21 (e).
Kansas City Power & Light Company, Kansas Electric Power Cooperative, Inc., and Western Resources, Inc., including its wholly-owned subsidiary Kansas Gas and Electric Company, have each provided an audited 2001 Consolidated Statement of Cash Flows in order to demonstrate sufficient funds are available to meet their share of the deferred premiums.
If you have any questions concerning this matter, please contact me at (620) 364-4000 or Mr.
Tony Harris at (620) 364-4038.
Very truly yours, Otto L. Maynard OLM/rlr Enclosures (3) cc: J. N. Donohew (NRC), w/e D. N. Graves (NRC), w/e E. W. Mershcoff (NRC), w/e Senior Resident Inspector (NRC), w/e Document Control Desk (NRC), w/e P.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HCNET
Kansas Electric PowerCooperative,Inc.
April 22, 2002 Mr. Mark Larson Comptroller Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Mark:
Pursuant to the requirements of 10 CRF 140.21(e), Kansas Electric Power Cooperative, Inc. is providing the attached audited Statement of Cash Flows for the year ended 2001 to show its ability to make payment of its share of deferred premiums in an amount of
$600,000.
The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. cash flow for the year 2001 is true and correct to the best of her knowledge and belief.
Sincerely yours, Phone: 785.273.7010 Fax: 785.271.4888 Sandy Abrahams www.kepco.org Controller Enclosure (1)
PO. Box 4877 Topeka, KS 66604-0877 600 Corporate View Topeka, KS 66615 A Touchstone Energy' Cooperative
-w -
Kansas Electric Power Cooperative, Inc.
Statements of cash flows For the years ended December 31, 2001 and 2000 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES:
Net margin (deficit) $ (4,424,785) $ (651,747)
Adjustments to reconcile net margin (deficit) to net cash provided by operations 5,803,654 6,773,126 Depreciation and amortization 2,197,183 1,838,316 Amortization of nuclear fuel 896,436 910,554 Amortization of deferred charges 1,451,681 1,827,924 Amortization of deferred incremental outage costs 946,216 Wolf Creek nuclear operating investment loss 442,715 212,300 Increase in decommissioning liability 163,445 164,785 Increase in arbitrage rebate payable (798,087)
Payment of arbitrage rebate payable (72,943) (64,927)
Payment to Department of Energy for decommissioning Changes in assets and liabilities 509,966 (735,035)
Member accounts receivable (487,853) (3,000)
Materials and supplies inventory 31,658 63,749 Other assets and prepaid expenses 706,146 321,023 Accounts payable 14,675 8,146 Payroll and payroll-related liabilities 114,552 (73,160)
Accrued property taxes 1,663,702 (1,996,220)
Accrued interest payable 185,197 (61,133)
Other long-term liabilities 6,578,168 11,300,091 Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: (1,846,293) (6,950,929)
Additions to electric plant, net (2,251,251)
(2,523,632)
Additions to nuclear fuel (90,839) (2,741,886)
Additions to deferred refueling costs (304,836) (115,426)
Increase in cash surrender value of life insurance contracts (212,300) (442,715)
Increase in decommissioning fund assets 667,392 (40,044)
Decrease (increase) in other investments 7,459,150 782,688 Sales of other investments, net 2,441,206 (11,052,127)
Net cash provided (used) in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: 304,836 2,484,967 Borrowings from cash surrender value of life insurance contracts (4,833,290)
(7,272,253)
Repayment of long-term debt 411,024 399,747 Amortization of debt issue costs (6,567,670) (1,937,299)
Net cash used in financing activities (1,689,335) 2,451,704 Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS AT:
Beginning of year 3,203,938 4,893,273
$ 5,655,642 $ 3,203,938 End of year The accompanying notes are an integral part of these financial statements.
Western Resources LEE WAGES Controller April 29, 2002 Mr. Mark Larson Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Mark:
Pursuant to the requirements of 10 CFR 140.21(e), Western Resources, Inc., including its wholly-owned subsidiary, Kansas Gas and Electric Company since March 31, 1992, is providing the attached audited Consolidated Statements of Cash Flows of its ability to make payment of its share of deferred premiums in an amount of $4.7 million.
The undersigned certifies that the foregoing memorandum with respect to Western Resources, Inc.'s cash flow for the year 2001 is true and correct to the best of his knowledge and belief.
Sincerely, Lee Wages Controller Ims attachment 818 South Kansas Avenue / P.O. Box 889 / Topeka, Kansas 66601 Telephone: (785) 575-6320 / Fax: (785) 575-6496 Mobile: (785) 554-6320 Internet: lee-wages@wr.com
WESTERN RESOURCES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 31.
2001 2000 1999 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss) ......................................................................................................... $ (20,876) $ 136,481 $ 14,296 Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Extraordinary gain ....................................................................................................... (23,156) (49,241) (11,742)
Cumulative effect of accounting change ...................................................................... (18,694) 3,810 Depreciation and amortization ..................................................................................... 413,642 426,369 403,669 Amortization of deferred gain from sale-leaseback ...................................................... (11,828) (11,828) (11,828)
Net changes in energy trading assets and liabilities ..................................................... 6,552 7,497 (1,188)
Equity in earnings from investments ............................................................................ (4,721) (11,219) (8,199)
Loss on dispositions of monitored services operations ................................................ 13,056 -
Impairment on investments .......................................................................................... 11,075 - 76,166 (Gain) loss on sale of marketable securities ................................................................. 1,861 (114,948) 26,251 Minority interests ......................................................................................................... (11,621) (8,625) (12,600)
Gain on sale of investments .........................................................................................- (9,562) (17,249)
Accretion of discount note interest .............................................................................. (2,247) (6,237) (6,799)
Net deferred taxes ........................................................................................................ (35,024) (29,744) (15,825)
Deferred merger costs .................................................................................................. 8,693 - 17,600 Changes in working capital items, net of acquisitions and dispositions:
Restricted cash ...................................................................................................... (3,880) (22,630) (16,154)
Accounts receivable, net ....................................................................................... 36,213 77,873 (3,824)
Inventories and supplies, net ................................................................................. (45,572) 12,282 (15,024)
Prepaid expenses and other ................................................................................... 231 (10,314) (2,571)
Accounts payable .................................................................................................. (26,865) 44,172 5,000 Accrued liabilities ................................................................................................. (19,783) (19,457) (20,152)
Accrued income taxes ........................................................................................... (14,064) 13,506 7,386 Deferred security revenues .................................................................................... (8,154) (2,065) 3,479 Changes in other assets and liabilities .......................................................................... (20.006 (14,358) (42,251)
Cash flows from operating activities ....................................................... 224,832 368,441 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment, net .......................................................... (236,452) (308,073) (275,744)
Customer account acquisitions ..................................................................................... (36,488) (35,513) (241,000)
Security alarm monitoring acquisitions, net of cash acquired ......................................- (11,748) (27,409)
Purchases of marketable securities ...............................................................................- - (12,003)
Proceeds from sale of marketable securities ................................................................ 2,829 218,609 73,456 Proceeds from dispositions of monitored services operations ...................................... 47,974 -
Proceeds from sale of other investments, net of purchases ......................................... 60,725 50,688 15,556 Cash flows used in investing activities ..................................................... (161,412 (86,037) (467,144)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net .................................................................................................... 188,907 (670,421) 392,949 Proceeds of long-term debt .......................................................................................... 26,925 610,045 16,000 Retirements of long-term debt ..................................................................................... (128,997) (208,952) (198,021)
Issuance of officer loans .............................................................................................. (1,973) -
Issuance of common stock, net .................................................................................... 19,384 27,441 43,245 Cash dividends paid ..................................................................................................... (85,547) (98,827) (145,033)
Preferred stock redemption .......................................................................................... (547) -
Acquisition of treasury stock ....................................................................................... (866) (9,187) (15,791)
Reissuance of treasury stock ........................................................................................ 7223 21898 Cash flows from (used in) financing activities ..................... 24,509 (328.003) 93,349 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ...................... 87,929 (2,278) (5,354)
CASH AND CASH EQUIVALENTS:
Beginning of period ..................................................................................................... 8,762 11,040 16394 End of period ............................................................................................................... 762 The accompanying notes are an integral part of these consolidated financial statements.
- KCPL NEIL ROADMAN CONTROLLER April 16, 2002 Mr. Mark Larson Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Mark:
Pursuant to the requirements of 10 CFR140.21(e), Kansas City Power & Light Company is providing the attached audited Consolidated Statements of Cash Flows of it ability to make payment of its share of deferred premiums in an amount of $5 million.
The undersigned certifies that the foregoing memorandum with respect to Kansas City Power &
Light Company's cash flow for the year 2001 is true and correct to the best of his knowledge and belief.
Sincerely, Attachment KANSAS CITY POWER & LIGHT COMPANY 1201 WALNUT P.O. BOX 418679 KANSAS CITY, MO 64141-9679
- 816-556-2200
KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2001 2000 1999 (thousands)
Cash Flows from Operating Activities Net income $ 119,691 $ 158,704 $ 81,915 Adjustments to reconcile income to net cash from operating activities:
Early extinguishment of debt, net of income taxes (15,872)
Cumulative effect of changes in accounting principles, net of income taxes (30,073)
Depreciation and depletion 152,893 132,378 123,269 Amortization of:
Nuclear fuel 17,087 15,227 15,782 Other 15,717 11,940 12,263 Deferred income taxes (net) 12,867 (29,542) (26,784)
Investment tax credit amortization (4,289) (4,296) (4,453)
Fuel contract settlement (13,391)
Loss from equity investments 501 19,441 24,951 (Gain) Loss on property (22,026) (99,118) 1,200 Kansas rate refund accrual (14,200)
Allowance for equity funds used during construction (3,616) (4,001) (2,657)
Other operating activities (Note 2) (35,322) 23,213 (37,786)
Net cash from operating activities 237,631 193,873 160,109 Cash Flows from Investing Activities Utility capital expenditures (262,030) (401,041) (180,687)
Allowance for borrowed funds used during construction (9,197) (12,184) (3,378)
Purchases of investments (41,548) (55,531) (35,072)
Purchases of nonutility property (49,254) (25,466) (55,792)
Proceeds from sale of assets 64,072 225,958 39,617 Hawthorn No. 5 partial insurance recovery 30,000 50,000 80,000 Loan to DTI prior to majority ownership (94,000) -
Other investing activities 8,087 18,967 (10,316)
Net cash from investing activities (353,870) (199,297) (165,628)
Cash Flows from Financing Activities Issuance of long-term debt 249,597 500,445 10,889 Repayment of long-term debt (93,099) (179,858) (109,060)
Net change in short-term borrowings 14,524 (183,099) 228,699 Dividends paid (78,246) (104,335) (106,662)
Dividends paid to Great Plains Energy (25,677) -
Cash of KLT Inc. and GPP dividended to Great Plains Energy (19,115) -
Redemption of preferred stock - (50,000)
Equity contribution from Great Plains Energy 39,000 -
Other financing activities (4,660) (5,925) 1,513 Net cash from financing activities 82,324 27,228 (24,621)
Net Change In Cash and Cash Equivalents (33,915) 21,804 (30,140)
Cash and Cash Equivalents at Beginning of Year 34,877 13,073 43,213 Cash and Cash Equivalents at End of Year $ 962 $ 34,877 $ 13,073 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.