WO 20-0047, Guarantee of Payment of Deferred Premiums
| ML20129K034 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/07/2020 |
| From: | Mccoy J Wolf Creek |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| WO 20-0047 | |
| Download: ML20129K034 (9) | |
Text
Jaime H. McCoy Site Vice President May 7, 2020 WO 20-0047 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555
Subject:
Docket No. 50-482: Guarantee of Payment of Deferred Premiums Commissioners and Staff:
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 (WCGS) are providing the enclosed documentation of their ability to pay deferred premiums in the amount of twenty million four hundred ninety-six thousand dollars, as determined by 10 CFR 140.11(a)(4).
Wolf Creek Nuclear Operating Corporation (WCNOC) holds the operating license for WCGS, which is jointly owned by Evergy Metro, Inc (formerly Kansas City Power & Light Company),
Evergy Kansas South, Inc. (formerly Kansas Gas & Electric Company), and Kansas Electric Power Cooperative, Inc. (KEPCo). Entities Evergy Metro, Evergy Kansas South, and KEPCo have provided audited Consolidated Statements of Cash Flows in order to demonstrate sufficient funds are available to meet their share of the deferred premiums.
This letter contains no commitments. If you have any questions concerning this matter, please contact me at (620) 364-4156, or Ron Benham at (620) 364-4204.
Sincerely, Jaime H. McCoy JHM/rlt
Enclosures:
I Evergy Metro, Inc. and Evergy Kansas South, Inc. Statements of Cash Flows II Kansas Electric Power Cooperative, Inc. Statement of Cash Flows cc:
S. A. Morris (NRC), w/e N. OKeefe (NRC), w/e B. K. Singal (NRC), w/e Senior Resident Inspector (NRC), w/e
Enclosure I to WO 20-0047 Evergy Metro, Inc. and Evergy Kansas South, Inc. Statements of Cash Flows (3 pages)
May 4, 2020 Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Todd:
Pursuant to the requirements of 10 CFR 140.21(e), Evergy Metro, Inc. and Evergy Kansas South, Inc. are each providing their attached audited Consolidated Statements of Cash Flows as evidence of their ability to make payment of each companys share of deferred premiums in the amount of $9.633 million per company.
The undersigned certifies that the foregoing memorandum with respect to Evergy Metro, Inc.s and Evergy Kansas South, Inc.s cash flows for the year 2019 is true and correct to the best of their knowledge and belief.
Sincerely, Steven P. Busser Vice President - Risk Management and Controller attachment
Table of Contents 75 EVERGY METRO, INC.
Consolidated Statements of Cash Flows Year Ended December 31 2019 2018 2017 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
(millions)
Net income
$ 255.2
$ 162.9
$ 179.8 Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 318.4 281.3 266.3 Amortization of nuclear fuel 25.9 26.2 32.1 Amortization of deferred refueling outage 12.8 13.5 18.3 Net deferred income taxes and credits (30.6) 48.6 82.5 Allowance for equity funds used during construction (2.2)
(1.4)
(6.0)
Payments for asset retirement obligations (2.5)
(13.1)
(25.5)
Other 0.3 3.9 7.5 Changes in working capital items:
Accounts receivable 37.0 36.5 13.8 Accounts receivable pledged as collateral 12.0
(20.0)
Fuel inventory and supplies 14.6 19.4 (5.2)
Prepaid expenses and other current assets 28.0 7.2 8.4 Accounts payable 9.1 (34.6) 11.7 Accrued taxes (9.6) 16.1 9.1 Other current liabilities (53.2) 10.4 (0.1)
Changes in other assets 33.7 42.9 31.7 Changes in other liabilities (34.7) 37.9 6.5 Cash Flows from Operating Activities 614.2 657.7 610.9 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment (445.0)
(430.7)
(468.6)
Purchase of securities - trusts (34.0)
(35.1)
(33.6)
Sale of securities - trusts 25.7 27.1 30.3 Other investing activities 9.0 4.8 0.9 Cash Flows used in Investing Activities (444.3)
(433.9)
(471.0)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short term debt, net 22.4 8.0 34.6 Collateralized short-term debt, net (12.0)
20.0 Proceeds from long-term debt 393.2 465.6 296.2 Retirements of long-term debt (400.0)
(519.9)
(281.0)
Cash dividends paid (175.0)
(180.0)
(212.0)
Other financing activities 0.9 2.9
Cash Flows used in Financing Activities (170.5)
(223.4)
(142.2)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (0.6) 0.4 (2.3)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period 2.6 2.2 4.5 End of period 2.0 2.6 2.2 The disclosures regarding Evergy Metro included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
This document contains confidential information of Evergy Kansas South, Inc.
4 EVERGY KANSAS SOUTH, INC.
Consolidated Statements of Cash Flows (Dollars in Thousands)
Year Ended December 31, 2019 2018 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Net income 151,881 148,595 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 198,884 178,781 Amortization of nuclear fuel 25,598 26,031 Amortization of deferred refueling outage 12,765 13,701 Amortization of deferred regulatory gain from sale leaseback (5,495)
(5,495)
Amortization of corporate-owned life insurance 17,781 20,634 Net deferred income taxes and credits (11,905) 2,567 Allowance for equity funds used during construction (20)
(1,687)
Payments for asset retirement obligations (4,245)
(3,331)
Income from corporate-owned life insurance (28,408)
(1,815)
Changes in working capital items:
Accounts receivable (4,531) 87,376 Fuel inventory and supplies 6,458 7,123 Prepaid expenses and other current assets (2,025)
(10,393)
Accounts payable (16,227) 20 Other current liabilities (23,886)
(64,509)
Changes in other assets 7,737 (4,718)
Changes in other liabilities (18,089) 5,786 Cash Flows from Operating Activities 306,273 398,666 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment (280,306)
(333,791)
Purchase of securities within the nuclear decommissioning trust fund (21,848)
(99,421)
Sale of securities within the nuclear decommissioning trust fund 19,265 101,070 Investment in corporate-owned life insurance (15,123)
(16,015)
Proceeds from investment in corporate-owned life insurance 157,959 6,279 Advance to parent 76,168 (73,426)
Other investing activities (3,190)
(7,423)
Cash Flows used in Investing Activities (67,075)
(422,727)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from long-term debt
46,440 Retirements of long-term debt (300,000)
(46,440)
Retirements of long-term debt of variable interest entity (30,337)
(28,534)
Borrowings from affiliates 160,043
Borrowings against cash surrender value of corporate-owned life insurance 56,477 56,486 Repayment of borrowings against cash surrender value of corporate-owned life insurance (125,381)
(3,891)
Cash Flows from (used) in Financing Activities (239,198) 24,061 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period
End of period
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID FOR:
Interest on financing activities, net of amount capitalized 39,795 50,590 Interest on financing activities of variable interest entity 1,589 2,294 Income taxes, net of refunds 35,720 16,715 NON-CASH INVESTING TRANSACTIONS:
Property, plant and equipment additions (reductions) 23,626 (75,366)
The accompanying notes are an integral part of these consolidated financial statements.
Enclosure II to WO 20-0047 Kansas Electric Power Cooperative, Inc. Statement of Cash Flows (3 pages)
P.O. Box 4877, Topeka, KS 66604-0877 600 Corporate View, Topeka, KS 66615 Phone (785) 273-7010 Fax (785) 271-4888 www.kepco.org Kansas Electric Power Cooperative, Inc.
KEPCo April 10, 2020 Mr. Todd N. Laflin Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Todd:
Pursuant to the requirements of 10 CFR 140.21(e), Kansas Electric Power Cooperative, Inc. is providing the attached audited Statements of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $1.230 million.
The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.s. cash flow for the year 2019 is true and correct to the best of their knowledge and belief.
Sincerely yours, Coleen M. Wells Sr. VP and CFO Enclosure (1)
Kansas Electric Power Cooperative, Inc. and Subsidiary Consolidated Statements of Cash Flows Years Ended December 31, 2019 and 2018 See Notes to Consolidated Financial Statements 2019 2018 Operating Activities Net margin 2,796,459 2,710,302 Adjustments to reconcile net margin to net cash flows provided by operating activities Depreciation 9,131,591 9,259,655 Amortization of nuclear fuel 3,219,404 3,254,982 Amortization of deferred charges 619,924 619,926 Amortization of deferred incremental outage costs 1,623,886 1,714,963 Amortization of debt issuance costs 9
Net periodic benefit costs 1,617,453 1,818,228 Patronage capital credits allocated (525,298)
(534,773)
Loss on sale of property and equipment 54,666 49,085 Changes in Member accounts receivable 1,372,186 1,224,564 Materials and supplies 304,937 198,295 Other long-term assets and prepaid expenses (1,286,835)
(351,459)
Accounts payable (890,768)
(799,598)
Payroll and payroll-related liabilities 54,707 10,079 Accrued property tax (86,910)
(63,893)
Accrued interest payable (22,316)
(21,458)
Accrued income taxes (1,216)
Other long-term liabilities (2,199,037)
(1,405,302)
Net cash provided by operating activities 15,784,049 17,682,389 Investing Activities Additions to electrical plant (5,065,919)
(8,122,948)
Additions to nuclear fuel (2,941,349)
(2,630,814)
Proceeds from investments in decommissioning fund assets 103,332 1,123,204 Purchases of investments in decommissioning fund assets (1,380,174)
(3,034,090)
Investments in associated organizations 779,720 767,606 Proceeds from sale of property 32,428 Net cash used in investing activities (8,504,390)
(11,864,614)
Financing Activities Principal payments on long-term debt (9,033,456)
(8,489,349)
Proceeds from issuance of long-term debt 4,110,126 2,057,401 Principal payments on NRUCFC line of credit (1,205,000)
(75,000)
Proceeds from draw downs on NRUCFC line of credit 1,205,000 75,000 Change in cushion of credit 4,087,395 307,788 Change in member investments 1,968,243 871,510 Net cash provided by (used in) financing activities 1,132,308 (5,252,650)
6 2019 2018 Increase in Cash and Cash Equivalents 8,411,967 565,125 Cash and Cash Equivalents, Beginning of Year 11,957,905 11,392,780 Cash and Cash Equivalents, End of Year 20,369,872 11,957,905 Supplemental Cash Flows Information Interest paid 7,901,006 8,277,000 Change in defined benefit pension plans - losses (422,520)
(611,562)
Change in fair value of decommissioning trust 4,244,837 (2,407,953)
$