ML18127A074

(WCGS) - Guarantee of Payment of Deferred Premiums

ML18127A074
Person / Time
Site:	Wolf Creek
Issue date:	04/30/2018
From:	Mccoy J Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
ET 18-0011
Download: ML18127A074 (10)

Text

W~LFCREEK *r NUCLEAR OPERATING CORPORATION Jaime H. McCoy Vice President Engineering April 30, 2018 ET 18-0011 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred Premiums To Whom It May Concern:

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 0.fVCGS) are providing the enclosed documentation of their ability to pay deferred premiums in the amount of eighteen million nine hundred sixty-three 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.

This letter contains no commitments. If you have any questions concerning this matter, please contact me at (620) 364-4156, or Cynthia R. Hafenstine at (620) 364-4204.

Sincerely, 9~i-J~

Jaime H. McCoy JHM/rlt

Enclosures:

I Kansas Gas and Electric Company Consolidated Statements of Cash Flows II Kansas City Power & Light Company Consolidated Statements of Cash Flows Ill Kansas Electric Power Cooperative, Inc. Statement of Cash Flows cc: K. M. Kennedy (NRC), w/e B. K. Singal (NRC), w/e N. H. Taylor (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 ET 18-0011 Kansas Gas and Electric Company Consolidated Statements of Cash Flows (2 pages)

April 18, 2018 Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21(e), Kansas Gas and Electric Company, is providing the attached audited Consolidated Financial Statements as evidence of the ability to make payment of its share of deferred premiums in an amount of $8.913 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Gas and Electric Company's cash flow for the year 2017 is true and correct to the best of their knowledge and belief.

Sincerely,_ ~

~e:_.e~

Kevin L. Kongs Vice President, Controller attachment 818 S Kansas Ave/ PO Box 889 / Topeka, KS 66601-0889 / (785) 575-6300

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

Year Ended December 31, 2017 2016 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

Net income ................................................................................................................................... $ 134,144 $ 149,278 Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization ........................................................................................... . 168,411 163,407 Amortization of nuclear fuel .............................................................................................. . 32,167 26,714 Amortization of deferred regulatory gain from sale leaseback .......................................... . (5,495) (5,495)

Amortization of corporate-owned Iife insurance ................................................................ . 19,021 18,098 Net deferred income taxes and credits ............................................................................... . 58,412 65,377 Allowance for equity funds used during construction ....................................................... .. (935) (3,070)

Payments for asset retirement obligations .......................................................................... . (4,978) (203)

Changes in working capital items:

Accounts receivable ........................................................................................................... . (770) (6,604)

Fuel inventory and supplies ................................................................................................ . (4,194) (241)

Prepaid expenses and other ................................................................................................ . 11,560 (20,715)

Accounts payable ............................................................................................................... . (4,555) (6,750)

Other current liabilities....................................................................................................... . (53,074) (64,685)

Changes in other assets ................................................................................................................ . (6,101) (17,378)

Changes in other liabilities .......................................................................................................... . 8,448 15,505 Cash Flows from Operating Activities ................................................................................................. . 352,061 313,238 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Additions to property, plant and equipment................................................................................. (364,682) (320,248)

Purchase of securities - trust......................................................................................................... (17,712) (46,581)

Sale of securities- trust................................................................................................................ 13,78S 45,154 Investment in corporate-owned life insurance............................................................................. (13,875) (14,648)

Proceeds from investment in corporate-owned life insurance..................................................... 1,044 92,279 Advance to parent......................................................................................................................... 13,976 6,120 Other investing activities.............................................................................................................. (1,848) (3,594)

Cash Flows used in Investing Activities ..................................................................... ---....:....--'-...:. (369,309) _ _ _ _(:...2_4..:.J,_5_18...:.)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Proceeds from long-term debt...................................................................................................... 49,957 Proceeds from long-term debt of variable interest entity............................................................. 162,048 Retirements oflong-terrn debt...................................................................................................... (50,000)

Retirements oflong-terrn debt of variable interest entity............................................................. (26,838) (I 87,29 I)

Borrowings against cash surrender value of corporate-owned life insurance.............................. 55,094 57,850 Repayment of borrowings against cash surrender value of corporate-owned life insurance....... (1,008) (89,284)

Dividends to parent ...................................................................................................................... _ _ __..:..(l_O,;...O_OO...:.) _ _ __..:..(I_S,;...O_OO...:.)

Cash Flows used in Financing Activities .............................................................................................. _ _ _ _ _1_7,_2_48______(:....7_1,c...7_20-'-)

NET CHANGE IN CASH AND CASH EQUIVALENTS ................................................................. ..

CASH AND CASH EQUIVALENTS:

Beginning of period ...................................................................................................................... - - - - - - - - - - - - - -

End of period ................................................................................................................................ =$======== =$========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

CASH PAID FOR:

Interest on financing activities, net of amount capitalized.................................................. $ 51,054 $ 51,514 Interest on financing activities of variable interest entity .................................................. . 2,959 5,587 NON-CASH INVESTING TRANSACTIONS:

Property, plant and equipment additions ........................................................................... .. 66,270 69,328

Enclosure II to ET 18-0011 Kansas City Power & Light Company Consolidated Statements of Cash Flows (2 pages)

April 24, 2018 Wolf Creek Nuclear Operating Corporation PO Box411 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 $8.913 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2017 is true and correct to the best of their knowledge and belief.

Sincerely, Steven P. Busser Vice President- Risk Management and Controller attachment KCP&L P.O. Box 418679 Ka11sas City. MO 64141-%79 1-888-471-5275 to!l-free www.kcpl.com

KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2017 Cash Flows from Operating Activities (millions)

Net income $ 179.8 Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization 266.3 Amortization of:

Nuclear fuel 32.1 Other 30.2 Deferred income taxes, net 83.5 Investment tax credit amortization (1.0)

Other operating activities 20.0 Net cash from operating activities 610.9 Cash Flows from Investing Activities Utility capital expenditures (437.7)

Allowance for borrowed funds used during construction (6.1)

Purchases of nuclear decommissioning trust investments (33.6)

Proceeds from nuclear decommissioning trust investments 30.3 Other investing activities (23.9)

Net cash from investing activities (471.0)

Cash Flows from Financing Activities Issuance of long-term debt 299.2 Issuance fees (3.0)

Repayment of Jong-term debt (281.0)

Net change in short-term borrowings 34.6 Net change in collateralized sh01t-term borrowings 20.0 Dividends paid to Great Plains Energy (212.0)

Net cash from financing activities (142.2)

. Net Change in Cash and Cash Equivalents (2.3)

Cash and Cash Equivalents at Beginning of Year 4.5 Cash and Cash Equivalents at End of Year $ 2.2

Enclosure Ill to ET 18-0011 Kansas Electric Power Cooperative, Inc. Statement of Cash Flows (2 pages)

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, Inca wwv,.kepco.org April 17, 2018 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 $1.138 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, lnc.'s. cash flow for the year 2017 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.

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ending December 31, 2017 2016 Cash Flows From Operating Activities Net margin $ 2,352,481 $ 1,932,895 Adjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization 8,498,847 8,173,568 Decommissioning 3,669,710 1,496,722 Amortization of nuclear fuel 3,976,149 3,294,777 Amortization of deferred charges 335,200 3,898,956 Amortization of deferred incremental outage costs 2,055,696 2,373,725 Amortization of debt issuance costs 8,313 15,391 Changes in Member accounts receivable 1,066,105 (1,590,640)

Materials and supplies (717,853) 57,909 Other assets and prepaid expense (896,884) (3,509,895)

Accounts payable (381,601) 1,340,474 Payroll and payroll-related liabilities 24,598 (8,141)

Accrued property tax (59,394) (154,440)

Accrued interest payable (28,722) (46,105)

Accrued income taxes 280 525 Other long-term liabilities 666,846 723,753 Prepaid pension cost 131,427 131,427 Deferred revenue (4,641,000) 2,600,736 Net cash flows from operating activities 16,060,198 20,731,637 Cash Flows From Investing Activities Additions to electrical plant (5,831,470) (10,825,350)

Additions to nuclear fuel (5,282,361) (2,506,622)

(Additions)/reductions to deferred charges (329,094) 340,606 Additions to deferred incremental outage costs (351,440) (2,827,500)

Investments in decommissioning fund assets (3,839,697) (1,666,711)

Investments in associated organizations (229,364) (468,165)

Proceeds from the sale of property 3,410 23,079 Net cash flows from investing activities (15,860,016) (17,930,663)

Cash Flows From Financing Activities Principal payments on long-term debt (6,558,200) (11,457,281)

Proceeds from issuance of long-term debt 5,401,047 21,229,828 Payments unapplied (748,201) (5,782,990)

Net cash flows from financing activities (1,905,354) 3,989,557 Net (decrease)/increase in cash and cash equivalents (1,705,172) 6,790,531 Cash and Cash Equivalents, Beginning of Year 13,097,952 6,307,421 Cash and Cash Equivalents, End of Year $ 11,392,780 $13,097,952 Supplemental Disclosure of Cash Flow Information Interest paid $ 8,663,000 $ 8,743,500

W~LFCREEK *r NUCLEAR OPERATING CORPORATION Jaime H. McCoy Vice President Engineering April 30, 2018 ET 18-0011 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred Premiums To Whom It May Concern:

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 0.fVCGS) are providing the enclosed documentation of their ability to pay deferred premiums in the amount of eighteen million nine hundred sixty-three 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.

This letter contains no commitments. If you have any questions concerning this matter, please contact me at (620) 364-4156, or Cynthia R. Hafenstine at (620) 364-4204.

Sincerely, 9~i-J~

Jaime H. McCoy JHM/rlt

Enclosures:

I Kansas Gas and Electric Company Consolidated Statements of Cash Flows II Kansas City Power & Light Company Consolidated Statements of Cash Flows Ill Kansas Electric Power Cooperative, Inc. Statement of Cash Flows cc: K. M. Kennedy (NRC), w/e B. K. Singal (NRC), w/e N. H. Taylor (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 ET 18-0011 Kansas Gas and Electric Company Consolidated Statements of Cash Flows (2 pages)

April 18, 2018 Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21(e), Kansas Gas and Electric Company, is providing the attached audited Consolidated Financial Statements as evidence of the ability to make payment of its share of deferred premiums in an amount of $8.913 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Gas and Electric Company's cash flow for the year 2017 is true and correct to the best of their knowledge and belief.

Sincerely,_ ~

~e:_.e~

Kevin L. Kongs Vice President, Controller attachment 818 S Kansas Ave/ PO Box 889 / Topeka, KS 66601-0889 / (785) 575-6300

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

Year Ended December 31, 2017 2016 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

Net income ................................................................................................................................... $ 134,144 $ 149,278 Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization ........................................................................................... . 168,411 163,407 Amortization of nuclear fuel .............................................................................................. . 32,167 26,714 Amortization of deferred regulatory gain from sale leaseback .......................................... . (5,495) (5,495)

Amortization of corporate-owned Iife insurance ................................................................ . 19,021 18,098 Net deferred income taxes and credits ............................................................................... . 58,412 65,377 Allowance for equity funds used during construction ....................................................... .. (935) (3,070)

Payments for asset retirement obligations .......................................................................... . (4,978) (203)

Changes in working capital items:

Accounts receivable ........................................................................................................... . (770) (6,604)

Fuel inventory and supplies ................................................................................................ . (4,194) (241)

Prepaid expenses and other ................................................................................................ . 11,560 (20,715)

Accounts payable ............................................................................................................... . (4,555) (6,750)

Other current liabilities....................................................................................................... . (53,074) (64,685)

Changes in other assets ................................................................................................................ . (6,101) (17,378)

Changes in other liabilities .......................................................................................................... . 8,448 15,505 Cash Flows from Operating Activities ................................................................................................. . 352,061 313,238 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Additions to property, plant and equipment................................................................................. (364,682) (320,248)

Purchase of securities - trust......................................................................................................... (17,712) (46,581)

Sale of securities- trust................................................................................................................ 13,78S 45,154 Investment in corporate-owned life insurance............................................................................. (13,875) (14,648)

Proceeds from investment in corporate-owned life insurance..................................................... 1,044 92,279 Advance to parent......................................................................................................................... 13,976 6,120 Other investing activities.............................................................................................................. (1,848) (3,594)

Cash Flows used in Investing Activities ..................................................................... ---....:....--'-...:. (369,309) _ _ _ _(:...2_4..:.J,_5_18...:.)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Proceeds from long-term debt...................................................................................................... 49,957 Proceeds from long-term debt of variable interest entity............................................................. 162,048 Retirements oflong-terrn debt...................................................................................................... (50,000)

Retirements oflong-terrn debt of variable interest entity............................................................. (26,838) (I 87,29 I)

Borrowings against cash surrender value of corporate-owned life insurance.............................. 55,094 57,850 Repayment of borrowings against cash surrender value of corporate-owned life insurance....... (1,008) (89,284)

Dividends to parent ...................................................................................................................... _ _ __..:..(l_O,;...O_OO...:.) _ _ __..:..(I_S,;...O_OO...:.)

Cash Flows used in Financing Activities .............................................................................................. _ _ _ _ _1_7,_2_48______(:....7_1,c...7_20-'-)

NET CHANGE IN CASH AND CASH EQUIVALENTS ................................................................. ..

CASH AND CASH EQUIVALENTS:

Beginning of period ...................................................................................................................... - - - - - - - - - - - - - -

End of period ................................................................................................................................ =$======== =$========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

CASH PAID FOR:

Interest on financing activities, net of amount capitalized.................................................. $ 51,054 $ 51,514 Interest on financing activities of variable interest entity .................................................. . 2,959 5,587 NON-CASH INVESTING TRANSACTIONS:

Property, plant and equipment additions ........................................................................... .. 66,270 69,328

Enclosure II to ET 18-0011 Kansas City Power & Light Company Consolidated Statements of Cash Flows (2 pages)

April 24, 2018 Wolf Creek Nuclear Operating Corporation PO Box411 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 $8.913 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2017 is true and correct to the best of their knowledge and belief.

Sincerely, Steven P. Busser Vice President- Risk Management and Controller attachment KCP&L P.O. Box 418679 Ka11sas City. MO 64141-%79 1-888-471-5275 to!l-free www.kcpl.com

KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2017 Cash Flows from Operating Activities (millions)

Net income $ 179.8 Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization 266.3 Amortization of:

Nuclear fuel 32.1 Other 30.2 Deferred income taxes, net 83.5 Investment tax credit amortization (1.0)

Other operating activities 20.0 Net cash from operating activities 610.9 Cash Flows from Investing Activities Utility capital expenditures (437.7)

Allowance for borrowed funds used during construction (6.1)

Purchases of nuclear decommissioning trust investments (33.6)

Proceeds from nuclear decommissioning trust investments 30.3 Other investing activities (23.9)

Net cash from investing activities (471.0)

Cash Flows from Financing Activities Issuance of long-term debt 299.2 Issuance fees (3.0)

Repayment of Jong-term debt (281.0)

Net change in short-term borrowings 34.6 Net change in collateralized sh01t-term borrowings 20.0 Dividends paid to Great Plains Energy (212.0)

Net cash from financing activities (142.2)

. Net Change in Cash and Cash Equivalents (2.3)

Cash and Cash Equivalents at Beginning of Year 4.5 Cash and Cash Equivalents at End of Year $ 2.2

Enclosure Ill to ET 18-0011 Kansas Electric Power Cooperative, Inc. Statement of Cash Flows (2 pages)

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, Inca wwv,.kepco.org April 17, 2018 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 $1.138 million.

The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, lnc.'s. cash flow for the year 2017 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.

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ending December 31, 2017 2016 Cash Flows From Operating Activities Net margin $ 2,352,481 $ 1,932,895 Adjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization 8,498,847 8,173,568 Decommissioning 3,669,710 1,496,722 Amortization of nuclear fuel 3,976,149 3,294,777 Amortization of deferred charges 335,200 3,898,956 Amortization of deferred incremental outage costs 2,055,696 2,373,725 Amortization of debt issuance costs 8,313 15,391 Changes in Member accounts receivable 1,066,105 (1,590,640)

Materials and supplies (717,853) 57,909 Other assets and prepaid expense (896,884) (3,509,895)

Accounts payable (381,601) 1,340,474 Payroll and payroll-related liabilities 24,598 (8,141)

Accrued property tax (59,394) (154,440)

Accrued interest payable (28,722) (46,105)

Accrued income taxes 280 525 Other long-term liabilities 666,846 723,753 Prepaid pension cost 131,427 131,427 Deferred revenue (4,641,000) 2,600,736 Net cash flows from operating activities 16,060,198 20,731,637 Cash Flows From Investing Activities Additions to electrical plant (5,831,470) (10,825,350)

Additions to nuclear fuel (5,282,361) (2,506,622)

(Additions)/reductions to deferred charges (329,094) 340,606 Additions to deferred incremental outage costs (351,440) (2,827,500)

Investments in decommissioning fund assets (3,839,697) (1,666,711)

Investments in associated organizations (229,364) (468,165)

Proceeds from the sale of property 3,410 23,079 Net cash flows from investing activities (15,860,016) (17,930,663)

Cash Flows From Financing Activities Principal payments on long-term debt (6,558,200) (11,457,281)

Proceeds from issuance of long-term debt 5,401,047 21,229,828 Payments unapplied (748,201) (5,782,990)

Net cash flows from financing activities (1,905,354) 3,989,557 Net (decrease)/increase in cash and cash equivalents (1,705,172) 6,790,531 Cash and Cash Equivalents, Beginning of Year 13,097,952 6,307,421 Cash and Cash Equivalents, End of Year $ 11,392,780 $13,097,952 Supplemental Disclosure of Cash Flow Information Interest paid $ 8,663,000 $ 8,743,500