ML13213A402

Guarantee of Payment of Deferred Premiums, 10CFR140.21

ML13213A402
Person / Time
Site:	Wolf Creek
Issue date:	05/07/2013
From:	Stull A Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CO 13-0003
Download: ML13213A402 (11)

Text

W$L F CREEK NUCLEAR OPERATING CORPORATION Annette F. Stull Vice President and Chief Financial Officer May 7, 2013 CO 13-0003 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred Premiums, 10 CFR 140.21 Gentlemen:

Pursuant to the requirements of 10 CFR 140.21 "Licensee guarantees of payment of deferred premiums," 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 seventeen million five hundred thousand dollars, as determined by 10 CFR 140.11(a)(4).

Kansas Gas and Electric Company (KGE), a wholly-owned subsidiary of Westar Energy, Inc.,

Kansas City Power & Light Company (KCPL), a wholly-owned subsidiary of Great Plains Energy Incorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo), have each provided audited Consolidated Statements 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) 364-4004, or Mr.

Michael J. Westman at (620) 364-8831 ext. 4009.

Sincerely, Annette F. Stull AFS/rlt Enclosure I Kansas Gas and Electric Company Consolidated Statements of Cash Flows II Kansas City Power & Light Company Consolidated Statements of Cash Flows III Kansas Electric Power Cooperative, Inc. Statement of Cash Flows cc: A. T. Howell (NRC) w/e C. F. Lyon (NRC), w/e N. F. O'Keefe (NRC), w/e Senior Resident Inspector (NRC), w/e P.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HCNET

Enclosure I to CO 13-0003 Kansas Gas and Electric Company Consolidated Statements of Cash Flows

KGEO May 1,2013 Mr. Todd N. Laflin Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21 (e), attached is the 2012 audited Consolidated Statements of Cash Flows as evidence of Kansas Gas & Electric Company's ability to make payment of its share of deferred premiums in an amount of $8.23 million.

Sincerely, Vice Presid nt, Controller Westar Energy, Inc.

attachment 818 South Kansas Avenue / PO, Box 889 /Topeka, Kansas 66601 Office Telephone: (785) 575-6300

/

INDEPENDENT AUDITORS' REPORT To the Board ot Directors and Stockholder of Kansas Gas and Electric Company Topeka, Kansas We have audited the accompanying consolidated financial statements of Kansas Gas and Electric Company and its subsidiaries (the "Company"), a wholly-owned subsidiary of Westar Energy, Inc. which comprise the consolidated balance sheets as of December 31, 2012 and 2011, and the related consolidated statements of income, changes in equity, and cash flows for the years then ended, and the related notes to consolidated financial statements.

Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility Our responsibility Is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditoesjudgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments.

the auditor considers internal controls relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's Internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial sutaements referred to above present fairly, in all material respects, the financial position of Kansas Gas and Electric Company and its subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Is/ Deloitte & Touche LLP Kansas City, Missouri February 28, 2013 3

KANSAS GAS AND ELECTRIC COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars In Thousands)

Year Ended December 31.

2012 2011 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

Net Incom e ..... ... ............... ................. ............ ........... ........... . ...

. S 98.446 S 53.765 Adjustments to reconcile not iecome to net cash provided by operatn g activites Depreciation and amnotmzatlon ................................................... ...... .......... 119.929 131.740 Am ortization or nuclear ruci ................................. .. ........ .................... 24.369 21.151 Amotization of deferred regulatory pin from sale leaseback ............. ............ (5.4") (5,495)

Amorltzatlon ocorperate-owned lire insurance ............................................................... 20,000 19.400 Not defer*ed income L.,s and credits ...................-....... '........... 25,964 11.752 Allowance for equity funds used during contruction................................................... (7.049) (2900)

Changes in working capital items:

Accoutts receiva ble....................................................................................... ........ (2,110) (4,03D)

Fu l Invento y d supplies ........................................................................................ (6.990) (10,642)

Prepaid e.penses and other.................................................... 19.785 (38,468)

A ecounts payable .. .... .... .......... ................ . ...................... ................................ 19.728 9,243 Other current liabilities ... . .... . . ......... (61,826) (64,405)

C hanges in othernr sets . .............. ........................ .................................. (4,755) 211 Ch n es in other li biities .... ..................................................... ....... .............. ............. (1.737) 3.483 Cash Flows from Operating Activities........................... ...................... 238.239 122.835 CASH FLOWS FROM (USED IN) INVES!riNo ACTIVITIES:

Additions o prorly. plantond equipment ............................................. (431.388) (350,625)

Purchase or securitie within the nuclear decommissioning trust rid.......... .............. (19.417) (47.694)

Sale of securities within the nuclear decommissioning trust fund ........................................ 18,527 45.495 Investment in ctxpors* ,oowned life insurance ........ . ...1........... .................. ..... (18,167) 1................

(18,952)

Proceeds rrom investment in corporaso-owned lire insurance ................... 32,718 249 Repaym eit oradvatce to pa rn.t ..... ............................. ................................ ................... . 172,956 Oher invesngsactivities .................................................... 890 2.199 Cash Flows used in Investing Activities ........................ ........ ............................. (416,837) (196.372)

CASlI FLOWS FROM (USED IN)PINANC ING ACTIViTIES:

Rctirem ents oflong-term de*t .................... ....................................................................... (13,318) (23)

Retllements or long-term debt of varable interest CvnlIly- . I .... ........... ..... (19,1*6) (18,079)

Borrowings from parent ..................................................................................................... 14.425 49,299 Investment by parent ..................... ....... .......... 160.457 Borrowings against cash surrender value of corpora't-owned lire Insurance ......................... 67,791 67,562 Repaymein oer rwrmvip agal*st cush surrender value of orporale-otned life imsanince ....... (31.591) (240)

I)vidends to par nt c.......................................

com pany ...................... . .................. ........... - (25.000)

Cash Flows from Flnancing Activities ..... .............. ................................... . ..... . ........ 118,"78 73.517 NET C*ANGE IN CASH AND CASH EQUIVALENTS............. ......... ..................... - -

CASII ANDCASH EQUIVALENTS, Beginr gfof period e ......................................................... ... ........ ........ ....

End ofperiod .............................. ..... ...................................................... .. . . ..... -. $

SUPPLEMENTAL DISCLOSURES OF CASIi FLOW INFORMATIONK CAS14 PAID FOR:

Interest on financing activities, net or amount capital d ...................... ...... $ 52.942 S 56.686 Interest on rinancing activltics of variable interes entity l ........................................... 14.022 15.043 NON-CASII INVESTING TRANSACTIONS:

Property, plant and equipment additions .......... ............. ................... 41,546 22.070 The accompn) ing notes am an Intpgral pan of these consolidated financial statementsn

'11M - - - - -

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Enclosure IIto CO 13-0003 Kansas City Power & Light Company Consolidated Statements of Cash Flows

April 30, 2013 Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21(e), Kansas City Power & Light Company, is providing the attached audited Consolidated Statements of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $8.23 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2012 is true and correct to the best of their knowledge and belief.

Sincerely, Lori Wright Vice President- Business Planningand Controller attachment KCP&L P.O. Box 418679 Kansas City. MO 64141-9679 1-B8.-471-5275 toll-free www.kcpl.com

KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2012

-.- I Cash Flows from Operating Activities (millions)

Net income $ 141.6 Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization 185.6 Amortization of:

Nuclear fuel 24.7 Other 30.1 Deferred income taxes, net 60.2 Investment tax credit amortization (1.8)

Other operating activities 27.9 Net cash from operating activities 468.3 Cash Flows from Investing Activities Utility capital expenditures (482.0)

Allowance for borrowed funds used during construction (3.7)

Purchases of nuclear decommissioning trust investments (24.2)

Proceeds from nuclear decommissioning trust investments 20.9 Other investing activities (11.7)

Net cash from investing activities (500.7)

Cash Flows from Financing Activities Repayment of long-term debt (12.7)

Net change in short-term borrowings 134.0 Net change in collateralized short-term borrowings 15.0 Net money pool borrowings (4.7)

Dividends paid to Great Plains Energy (96.0)

Other 0.1 Net cash from financing activities 35.7 Net Change in Cash and Cash Equivalents 3.3 Cash and Cash Equivalents at Beginning of Year 1.9 Cash and Cash Equivalents at End of Year $ 5.2

Enclosure III to CO 13-0003 Kansas Electric Power Cooperati'e, Inc. Statement of Cash Flows

P.O. Box 4877, Topeka, KS 66604-0877 Kansas Electric 600 Corporate View, Topeka, KS 66615 Phone (785) 273-7010 Fax (785) 271-4888 Power Cooperative,Inc. www.kepco.org April 26, 2013 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 Statement of Cash Flows as evidence of the ability to make payment of its share of deferred premiums in an amount of $1.5 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. Cash flow for the year 2012 is true and correct to the best of their knowledge and belief.

Sincerely yours, I&,, fli de' Coleen M. Wells VP and CFO Enclosure (1)

KANSAS ELECTRIC POWER COOPERATIVE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ending December 31, 2012 2011 Cash Flows From Operating Activities Net margin $ 11,916,571 $ 10,862,736 Adjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization 6,417,670 5,895,848 Decommissioning 1,500,024 47,317 Amortization of nuclear fuel 3,004,990 2,604,250 Amortization of deferred charges 4,245,720 4,298,277 Amortization or deferred incremental outage costs 7,179,415 7,965,177 Amortization of debt issuance costs 86,953 95,243 Changes in Member accounts receivable (5,624,402) 4,542,945 Materials and supplies (899,836) (749,197)

Other assets and prepaid expense (305,776) (32,946)

Accounts payable 2,607,180 (754,741)

Payroll and payroll-related liabilities 17,531 3,054 Accrued property tax 180,292 6,482 Accrued interest payable (34,313) (107,769)

Accrued income taxes (847) (2,182)

Other long-term liabilities (106,340) (1,038,178)

Net cash flows from operating activities 30,184,832 33,636,316 Cash Flows From Investing Activities Additions to electrical plant (9,658,692) (5,684,518)

Additions to nuclear fuel (3,709,772) (2,330,827)

Additions to deferred charges (280,455) (21,452)

Additions to deferred incremental outage costs (900,384) (13,911,758)

Investments in decommissioning fund assets (1,966,895) (572,960)

Investments in associated organizations 304,392 (195,045)

Investments in bond reserve assets (24,930) (9,279)

Proceeds from the sale of property 7,958 20,504 Net cash flows from investing activities (16,228,778) (22,705,335)

Cash Flows From Financing Activities Principal payments on long-term debt (18,781,860) (17,676,717)

Proceeds from issuance of long-term debt 1,048,000 8,523,204 Payments unapplied (2,388,504) 2,863,733 Net cash flows from financing activities (20,122,364) (6,289,780)

Net (decrease) increase in cash and cash equivalents (6,166,310) 4,641,201 Cash and Cash Equivalents, Beginning of Year 8,990,444 4,349,243 Cash and Cash Equivalents, End of Year $ 2,824,134 $ 8,990,444 Supplemental Disclosure of Cash Flow Information Interest paid $ 10,417,400 $ 10,974,100 See Notes to the Consolidated Financial Statements 7