ML081840514
| ML081840514 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 04/25/2008 |
| From: | Stull A F Wolf Creek |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| CO 08-0002 | |
| Download: ML081840514 (8) | |
Text
DESIGNATED ORIGINAL PER PROJECT MANAGER WL F CR EE K'NUCLEAR OPERATING CORPORLATION Annette F. Stull Vice President and Chief Financial Officer (620 364-4004 April 25, 2008 (620) 364-4017 facsimile anstull@wcnoc.com CO 08-0002 Director, Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Rockville, MD 20852-2738
Subject:
Docket No. 50-482: Guarantee of Payment of Deferred Premiums, 10 CFR 140.21 Sir: 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 fifteen million dollars, as required by 10 CFR 140.21(e).
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.Richard D. Flannigan at (620) 364-4117.Sincerely, Annette F. Stull AFS/rlt Enclosures cc: E. E. Collins (NRC) w/e V. G. Gaddy (NRC), w/e B. K. Singal (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 g )An Equal Opportunity Employer M/F/HC/VET 7b~ oi SKGEApril 9, 2008 Mr. Thomas J. Robke Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Mr. Robke:
Pursuant to the requirements of 10 CFR 140.21(e), Kansas Gas & Electric Company is providing the attached audited Statement of Cash Flows regarding its ability to make payment of its share of deferred premiums in an amount of $7.05 million.The undersigned certifies that the foregoing memorandum with respect to Kansas Gas &Electric Company's cash flow for the year 2007 is true and correct to the best of his knowledge and belief.Sincerely, Lee Wa e Vice President and Controller Westar Energy, Inc.Ims attachment cc: Angela Smith 818 South Kansas Avenue P.O. Box 889 I Topeka, Kansas 66601 Office Telephone:
(785) 575-6300 KANSAS GAS AND ELECTRIC COMPANY STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 31, 2007 2006 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income......................................................
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
......................................................................................
Amortization of nuclear fuel .........................................................................................
Amortization of deferred gain from sale-leaseback
......................................................
Amortization of corporate-owned life insurance
...........................................................
N et deferred taxes .........................................................................................................
Net changes in energy marketing assets and liabilities
.................................................
Allowance for equity funds used during construction
...................................................
Changes in working capital items: Account§ receivable, net ...............................................................................................
Inventories and supplies ...............................................................................................
Prepaid expenses and other ...........................................................................................
A cco un ts payab le ..........................................................................................................
P ayab le to affi liates ......................................................................................................
O ther cu rren t liab ilities .................................................................................................
Changes in other assets .......................................................................................................
Changes in other liabilities
..................................................................................................
Cash flows from operating activities
...............................................................
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment
........................................................................
Allowance for equity funds used during construction
.........................................................
Purchase of securities within the nuclear decommissioning trust fund ...............................
Sale of securities within the nuclear decommissioning trust fund .......................................
Investment in corporate-owned life insurance
.....................................................................
Proceeds from investment in corporate-owned life insurance
.............................................
Receivable from affiliates
...................................................................................................
Proceeds from other investments, net ..................................................................................
Cash flows used in investing activities
............................................................
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from long-term debt .............................................................................................
Retirements of long-term debt .............................................................................................
In vestm ent b y p aren t ...........................................................................................................
Borrowings against cash surrender value of corporate-owned life insurance
......................
Repayment of borrowings against cash surrender value of corporate-owned life in su ra n c e ......................................................................................................................
Dividends to parent company ..............................................................................................
Cash flows from financing activities
...............................................................
NET DECREASE IN CASH AND CASH EQUIVALENTS
.....................................................
CASH AND CASH EQUIVALENTS:
B eg in n ing o f period ............................................................................................................
E n d o f p e rio d ......................................................................................................................
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID FOR: Interest on financing activities, net of amount capitalized
...........................................
NON-CASH INVESTING TRANSACTIONS:
Property, plant and equipment additions
......................................................................
NON-CASH FINANCING TRANSACTIONS:
Conversion of intercompany payable ...........................................................................
$ 55,079 97,118 16,711 (5,495)13,392 (20,936)2,956 (1,131)(5,511)(12,904)(36,053)(7,673)(12,100)1,115 9 957 94 525 (191,356)1,131 (240,067)238,414 (18,793)544 (6,956)1,653 (215,430)175,000 (25)61,472 (544)(115,000)120,903 (2)2$ 12,659$ 14,746$ 73,472 94,059 (13,851)(5,495)14,305 13,141 (3,612)56,921 (15,818)(57,825)12,827 (34,592)(5,697)39,864 (63,733)103,966 (146,521)(345,541)341,410 (19,127)22,684 4,122 (142,973)99,662 (200,000)100,000 59,697 (22,828)36,531 (2,476)2,478 5; 2$ 18,071$ 12,917$ 120,000$The accompanying notes are an integral part of these financial statements.
4 Kansas Electric Power Cooperative, Inc.Consolidated Statements of Cash Flows Years Ended December 31, 2007 and 2006 2006 Operating Activities Net margin Adjustments to reconcile net margin to net cash provided by operating activities Depreciation and amortization Decommissioning Amortization of nuclear fuel Amortization of deferred charges Amortization of deferred incremental outage costs Amortization of debt issuance costs Changes in Member accounts receivable Materials and supplies Other assets and prepaid expenses Accounts payable Payroll and payroll-related liabilities Accrued property tax Accrued interest payable Restricted assets Other long-term liabilities Net cash provided by operating activities Cash Flows From Investing Activities Additions to electric plant Additions to nuclear fuel Additions to deferred incremental outage costs Investments in decommissioning fund assets Other Net cash used in investing activities Cash Flows From Financing Activities Net borrowing (payment) under line of credit agreement Principle payments on long-term debt Utilization of RUS cushion of credit Proceeds from issuance of long-term debt Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents
$ 2,696,657
$ 1,046,682 3,683,888 937,014 2,104,442 4,385,787 2,810,796 120,542 (765,716)(139,576)25,638 333,269 19,449 (2,441)(169,584)(52,903)545,694 16,532,956 (14,730,493)
(4,756,258)
(368,294)(939,498)(2,258,632)
(23,053,175)
(3,521,028)
(11,162,496) 24,065,046 9,381,522 3,704,711 1,458,328 1,748,780 4,588,218 2,557,796 125,432 637,183 (156,089)120,250 208,536 20,971 25,533 155,139 (33,328)(300,801)15,907,341 (6,034,758)
(3,179,023)
(4,078,059)
(1,292,261) 20,047 (14,564,054) 3,521,028 (10,464,348) 3,526,341 (3,416,979) 2,861,303 (2,073,692)
Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year 3,271,471$ 6,132,774 5,345,163$ 3,271,471$ 8,385,104 Supplemental Cash Flows Information Cash paid during the year for interest $ 8,355,648 See Notes to Consolidated Financial Statements5 5
UHIEfT PflSI H I I;M Y April 8, 2008 Mr. Tom Robke Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Tom:
qt0 +YL Pursuant to the requirements of 10 CFR1.04-21 (e), Kansas City Power & Light Company is providing the attached audited Consolidated Statements of Cash Flows to provide evidence of the ability to make payment of its share of deferred premiums in an amount of $15 million.To the best of my knowledge, I certify that the foregoing memorandum with respect to Kansas City Power & Light Company's cash flow for the year 2007 is true and correct.Attachment P.O. Box 418679 -KANSAS CITY, MO 64141-9679 U TEL 816.556.2200 M WWW.KCPL.COM U WWW.GREATPLAINSENERGY.COM KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 Cash Flows from Operating Activities Net income Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization Amortization of: Nuclear fuel Other Deferred income taxes, net Investment tax credit amortization Fair value impacts from interest rate hedging (Gain) loss on property Minority interest in subsidiaries Other operating activities (Note 3)Net cash from operating activities 2007 2006 (millions)
$ 156.7 S 149.3 2005 S 143.7 146.6 175.6 152.7 16.8 4.6 19.7 (1.5)1.4 (18.5)354.8 14.4 6.6 17.4 (1.2)(0.6)(39.4)299.2 13.4 7.7 (33.6)(3.9)4.6 7.8 79.3 365.6 Cash Flows from Investing Activities Utility capital expenditures (511.5) (475.9) (332.1)Allowance for borrowed funds used during construction (14.4) (5.7) (1.6)Purchases of nonutility property (0.1) (0.1) (0.1)Proceeds from sale of assets 0.1 0.4 0.5 Purchases of nuclear decommissioning trust investments (58.0) (49.7) (34.6)Proceeds from nuclear decommissioning trust investments 54.3 46.0 31.0 Hawthorn No. 5 partial insurance recovery --10.0 Hawthorn No. 5 partial litigation recoveries 15.8 -Other investing activities (7.6) (0.9) (0.9)Net cash from investing activities (537.2) (470.1) (327.8)Cash Flows from Financing Activities Issuance of long-term debt 396.1 334.4 Repayment of long-term debt (372.0) -(335.9)Net change in short-term borrowings 209.4 124.6 32.4 Dividends paid to Great Plains Energy (140.0) (89.0) (112.7)Equity contribution from Great Plains Energy 94.0 134.6 Issuance fees (3.7) (0.5) (4.6)Net cash from financing activities 183.8 169.7 (86.4)Net Change in Cash and Cash Equivalents 1.4 (1.2) (48.6)Cash and Cash Equivalents at Beginning of Year 1.8 3.0 51.6 Cash and Cash Equivalents at End of Year $ 3.2 $ 1.8 3.0 The disclosures regarding consolidated KCP&L included in the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
68 Kansas Electric Power Cooperative, Inc., April 18, 2008 Ms. Annette Stull Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Annette:
Pursuant to the requirements of 10 CFR 140.21 (e), Kansas Electric Power Cooperative, Inc. is providing the attached audited Statement of Cash Flows to show its ability to make payment of its share of deferred premiums in an amount of $900,000.The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. Cash flow for the year 2007 is true and correct to the best of her knowledge and belief.Sincerely yours, Coleen M. Wells VP Finance, and Controller Enclosure (1)Phone: 785.273.7010 Fax: 785.271.4888 www.kepco.org P.O. Box 4877 Topeka, KS 66604-0877 600 Corporate View Topeka, KS 66615 A Tochsone Energy" C op itive