ML11111A138
| ML11111A138 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 04/14/2011 |
| From: | Stull A Wolf Creek |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| CO 11-0001 | |
| Download: ML11111A138 (8) | |
Text
W*LF CREEK 'NUCLEAR OPERATING CORPORATION Annette F. Stull Vice President and Chief Financial Officer April 14, 2011 CO 11-0001 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, 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.
Gautam Sen at (620) 364-4175.
S cerely, Anne Stull AFS/rlt Enclosures (3) cc: E. E. Collins (NRC) w/e J. R. Hall (NRC), w/e G. B. Miller (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
We star Energy.
March 29, 2011 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, we are providing the attached audited 2010 Consolidated Statements of Cash Flows, with independent auditor's opinion, for Kansas Gas & Electric. The statement is provided to access Kansas Gas & Electric's ability to make payment of its share of deferred premiums in an amount of $8.23 million.
rely, ESince Lee Wage Vice President, Controller Westar Energy, Inc.
attachment 818 S Kansas Ave / PO Box 889 / Topeka, Kansas 66601-0889
INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholder of Kansas Gas and Electric Company Topeka, Kansas We have audited the accompanying consolidated balance sheets of Kansas Gas and Electric Company (the "Company"), a wholly-owned subsidiary of Westar Energy, Inc., as of December 31, 2010 and 2009, and the related consolidated statements of income, stockholder's equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the generally accepted auditing standards as established by the Auditing Standards Boards (United States) and in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perforn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perforn, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Kansas Gas and Electric Company at December 31, 2010 and 2009, and the results of their operations and their cash flows for the years then ended in conformnity with accounting principles generally accepted in the United States of America.
As discussed in Note 15 to the consolidated financial statements, the Company adopted a new accounting standard with respect to the consolidation of variable interest entities effective January 1, 2010.
/s/ Deloitte & Touche LLP Kansas City, Missouri February 24, 2011 I
KANSAS GAS AND ELECTRIC COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 3 1 2010 2009 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
N et incom e ........................................................................................................ . ............ $ 52.70 1 $ 55.879 Adjustments to reconcile net income to net cash provided by operating activities:
D epreciation and amortization ................................................................................................ 128.724 117.547 A m ortization of nuclear fuel ................................................................................................... 25.089 16.161 Amortization ofdeferred regulatory gain from salc-leaseback .............................................. (5,495) (5.495)
Amortization ofcorporatc-owned life insurance .................................................................... 16,657 17.449 N et deferred incom e taxes and credits .................................................................................... 23,766 9.127 Net changes in energy marketing assets and liabilities .......................................................... - 4,138 Allowance for equity funds used during construction ........................................................... (1.355) (1.741)
Changes in working capital items:
A ccounts receivab le ................................................................................................................ (185) (17,0 17)
Inventories and supplies .......................................................................................................... (1.663) 4,750 Prepaid expenses and other ..................................................................................................... 19,055 (24.396)
A cco unts payable .................................................................................................................... (3,2 7 1) 8.957 O ther current liab ilities ........................................................................................................... (73,70 1) 8,9 74 C hanges in other assets .................................................................................................................. (6.788) (10 ,6 13)
C hanges in other liab ilities ............................................................................................................ 5,778 (5,965)
C ash Flow s from Operating A ctivities ...................................................................... 179 312 177,755 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment .................................................................................. (203.545) (172,435)
Purchase of securities within the nuclear decommissioning trust fund ........................................ (190,687) (64,016)
Sale of securities within the nuclear decommissioning trust fund ................................................ 189,939 61,096 Investm ent in corporatc-ow ned life insurance ............................................................................... (18,884) (17,724)
Proceeds from investment in corporate-owned life insurance ...................................................... 1,073 798 A d vance to parent .......................................................................................................................... 4 9 ,660 (222,6 15)
O ther investing activities ............................................................................................................... 70 9 2,920 Cash Flows used in Investing Activities ................................................................... (171.735) (41I,976 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from long-term debt ........................................................................................................ - 347,507 R etirem ents of long-term debt ....................................................................................................... (120) (50,000)
Retirements of long-term debt of variable interest entity .............................................................. (17,036)
Repaym ent of borrow ings to parent .............................................................................................. - (22.403)
Borrowings against cash surrender value of corporate-owned life insurance ............................. 74.134 10,299 Repayment of borrowings against cash surrender value of corporate-owned life insurance ....... (1,055) (1.182)
D ividends to parent com pany ........................................................................................................ (63,500) (50 000 )
Cash Flows (used in) from Financing Activities .......................................... . 7.577) 2.34,22[
NET INCREASE IN CASH AND CASH EQUIVALENTS ....................................................... .......- -
CASH AND CASH EQUIVALENTS:
B eg in n ing o f p erio d .......................................................................................................................-
End of period .................................................................. $.S - $ - -
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID FOR:
Interest on financing activities, net ofamount capitalized ..................................................... S 57,776 S 46,539 Interest on financing activities of variable interest entity ...................................................... 16,005 -
NON-CASH INVESTING TRANSACTIONS:
Property, plant and equipm ent additions ................................................................................ 30,071 3,966 Property, plant and equipment additions of variable interest entity (a) ................................. 233,199 -
NON-CASH FINANCING TRANSACTIONS:
D ebt of variable interest entity (al ......................................................................................... 283,429 (a) These transactions result from the consolidation of the variable interest entity discussed in Note 15, "Variable Interest Entities."
The accompanying notes arc an integral part of these consolidated financial statements.
4
March 28, 2011 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), 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 2010 is true and correct to the best of their knowledge and belief.
Sincerely, Lori Wright Vice Presidentand Controller attachment KCP&L P.O. Box 418679 Kansas City, MO 64141-9679 1-888-471-5275 toll-free www.kcpl.com
KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2010 Cash Flows from Operating Activities (millions)
Net income S 163.2 Adjustments to reconcile income to net cash from operating activities:
Depreciation and amortization 256.4 Amortization of:
Nuclear fuel 25.1 Other 24.2 Deferred income taxes, net 83.2 Investment tax credit amortization (2.1)
Other operating activities (Note 2) (127.8)
Net cash from operating activities 422.2 Cash Flows from Investing Activities Utility capital expenditures (463.1)
Allowance for borrowed funds used during construction (22.4)
Purchases of nuclear decommissioning trust investments (83.3)
Proceeds from nuclear decommissioning trust investments 79.6 Net money pool lending (6.1)
Other investing activities (13.4)
Net cash from investing activities (508.7)
Cash Flows from Financing Activities Issuance of long-term debt Repayment of long-term debt (0.2)
Net change in short-term borrowings 76.9 Net change in collateralized short-term borrowings 95.0 Net money pool borrowings 1.1 Dividends paid to Great Plains Energy (95.0)
Equity contribution from Great Plains Energy Issuance fees (5.1)
Net cash from financing activities 72.7 Net Change in Cash and Cash Equivalents (13.8)
Cash and Cash Equivalents at Beginning of Year 17.4 Cash and Cash Equivalents at End of Year $ 3.6 The disclosures regarding KCP&L included in the accompanying Notes to Consolidated Financi an integral part of these statements.
Kansas Electric Power Cooperative, Inc.
March 29, 2011 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 2010 is true and correct to the best of her knowledge and belief.
Sincerely yours, Coleen M. Wells VP Finance, and CFO 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 Toudýon E-p*' Cooper- ISLA
KANSAS ELECTRIC POWER COOPERATIVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2010 and 2009 2010 2009 Cash Flow From Operating Activities Net margin $ 7,646,619 $ 9,338,290 Adjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization 3,933,791 3,889,826 Decommissioning 1,726,544 1,833,811 Amortization of nuclear fuel 3,072,155 2,013,679 Amortization of deferred charges 4,354,224 4,348,006 Amortization or deferred incremental outage costs 3,946,016 4,099,003 Amortization of debt issuance costs 102,686 109,275 Changes in Member accounts receivable (653,666) (951,170)
Materials and supplies (291,350) (84,641)
Other assets and prepaid expense 69,423 (304,548)
Accounts payable 1,173,474 2,049,237 Payroll and payroll-related liabilities 33,679 (22,116)
Accrued property tax 12,299 23,038 Accrued interest payable 431,717 11,087 Accrued income taxes 1,937 Other long-term liabilities 426,336 440,601 Net cash flows from operating activities 25,985,884 26,793,378 Cash Flows From Investing Activities Additions to electrical plant (18,792,039) (23,937,741)
Additions to nuclear fuel (4,469,736) (2,474,774)
Additions to deferred incremental outage costs (982,345) (5,331,381)
Investments in decommissioning fund assets (1,791,141) (2,358,279)
Investments in National Rural Utilities Cooperative Finance Corporation 1,381,901 (6,781,554)
Investments in bond reserve assets 5,674 (89,996)
Net cash flows from investing activities (24,647,686) (40,973,725)
Cash Flows From Financing Activities Net borrowing (payment) under line of credit agreement (13,709,763) (13,178,203)
Principal payments on long-term debt (13,209,153)
Proceeds from issuance of long-term debt 16,602,177 40,052,226 Net cash flows from financing activities 2,892,414 13,664,870 Net Increase/(Decrease) in cash and cash equivalents 4,230,612 (515,477)
Cash and Cash Equivalents, Beginning of year 118,631 634,108 Cash and Cash Equivalents, End of Year $ 4,349,243 $ 118,631 See Notes to the Financial Statements 6