ML041350258
| ML041350258 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 05/07/2004 |
| From: | Larson M Wolf Creek |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| CT 04-0049 | |
| Download: ML041350258 (7) | |
Text
-W-L Mark S. Larson
-LFCREEK 'NUCLEAR OPERATING CORPORATION Vice President and Chief Administrative Officer -
' MAY 07 2004 CT 04-0049 ATTN: Document Control Desk Director, Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555-0001
Subject:
Docket No: .50-482: Guarantee of Payment of Deferred Premiums, 10 CFR 140.21
Dear 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 are providing the enclosed documentation of their ability to pay deferred premiums in the amount of ten 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.
Kevin Moles at (620) 364-4126.
Very truly yours, Mark S. Larson MSL~rlg Enclosures (3) cc: J. N. Donohew (NRC), w/e D. N.Graves (NRC), w/e B. S. Mallett (NRC), w/e ; -
Senior Resident Inspector (NRC), w/e
-RO.Box 411 / Burlington. KS 66839 / Phone: (620) 364-8831 Co An Equal Opportunity Employer MIF/HCNVET.
APR 2 7 2004 Wesstar Energy.
LEE WAGES Vice President, Controller and International Generation April 23, 2004 Mr. Mark Larson Wolf Creek Nuclear Operating Corporation PO Box 411 Burlington, KS 66839
Dear Mark:
Pursuant to the requirements of 10 CFR 140.21 (e), Westar Energy, Inc., including its wholly-owned subsidiary, Kansas Gas and Electric Company since March 31, 1992, is providing the attached audited Consolidated Statements of Cash Flows of its ability to make payment of its share of deferred premiums in an amount of $4.7 million.
The undersigned certifies that the foregoing memorandum with respect to Westar Energy, Inc.'s cash flow for the year 2003 is true and correct to the best of his knowledge and belief.
Lee Wages Controller Ims attachment 818 South Kansas Avenue / PO. Box 889 / Topeka, Kansas 66601 Telephone: (785) 575-6320 / Fax: (785) 575-1730 Mobile: (785) 554-6320 Internet: lee wages@wxncom
WESTAR ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
Year Ended December 31.
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:
Net income (loss)........................................................................................................ S 85,010 S (793,001) S (20,876)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Discontinued operations, net of tax ...................................................................... 77,905 881,817 98,903 Cumulative effect of accounting change .............................................................. (18,694)
Depreciation and amortization ............................................................................. 167,236 171,807 185,519 Amortization ofdeferred gain from salc-leaseback.............................................. (11,828) (11,828) (11,828)
Amortization ofnon-cash stock compensation. ...................................... 6,885 14,006 12,840 Net changes in energy trading assets and liabilities.............................................. (1,855) 20,229 10,683 Loss (gain) on extinguishment ofdebt and settlement of putable/callable notes.. 26,455 1,541 (1,395)
- Net changes in fair value of call option ................................................................ 2,178 22,609 Equity in earnings from investments.................................................................... (9,670) (4,721)
Impairment on investments.................................................................................. 500 330 11,075 (Gain) loss on sale of marketable securities ......................................................... (99,327) 1,861 (Gain) loss on sale of utility plant and property ................................................... (11,912) 1,424 Accrued potential liability.................................................................................... 1,205 22,928 Corporate-owned life insurance........................................................................... (41,133) (31,773) (47,627)
Net deferred taxes ................................................................................................ (94,838) 24,435 (12,200)
Changes in working capital items, net ofacquisitions and dispositions:
Restricted cash..................................................................................................... (4,794) (6,596) (5,868)
Accounts receivable, net (31,770) (4,795) 31,944 P __I.+
oSand 1V ILU1 sb UUU bUVL)Pt ....................................................................................... 6,901 (8,955) (48,369)
Prepaid expenses and other.............. ..................................................................... 61,048 (3,482) (2,146)
Accounts payable............................. ...................................................................... 8,328 (21,026) (28,541)
Accrued and other current liabilities s.................................................................... (76,565) 4,324 2,245 Accue tae................... 78,911 (22,640) (23,875) wsun, ausast.............................................................................................. 1,170 1,146 (11,116)
Changes in other, liabilities ........................................................................................ (23,3041 1S.14 58 Cash flows from operating activities. ...................................... 126.A6 270S979 117.872 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Additions to property, plant and equipment................................................................ (150,378) (126,763) (226,996)
Investment in corporate-owned life insurance ............................................................ (19,599) (19,399) (19,852)
Proceeds from sale ofutility plant and property ......................................................... 33,303 1,205 Proceeds from sale ofmarketable securities ............................................................... 801,841 2,829 Issuance of officer loans and interest, net ofpayments ............................................... 438 (309) (1,973)
Proceeds from other investments................................................................................ 801 18.29 63,198 Cash flows from (used in) investing activities ........................................ 666.406 (126.97) (1821794)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net.................................................................................................... - (221,300) 187,300 Proceeds of long-term debt......................................................................................... - 1,350,069 107 Retirements of long-term debt......... . ............ ....................................... ...... (963,330) -- (1,028,379) (50,388)
Funds in trust for debt repayments.............................................................................. 145,182 (135,000)
Purchase ofcall option investment ............................................................................. (65,785) -
Net borrowings against cash surrender value of corporate-owned life insurance. 58,399 52,630 57,759 Issuance of common stodc, net ................................................................................... - 2,551 5,604 Cash dividends paid.................................................................................................... (57,726) (73,535) (67,259)
Retirement of preferred stock ..................................................................................... - (1,547) (545)
Acquisition of treasury stock...................................................................................... - (19,544) (866)
Reissuance of treasury stock....................................................................................... 7.260 256 899 Cash flows (used in) from financing activities...................................... (876.000 (73.799 132,611 Net cash from (used in) discontinued operations. ;.............................................................. 49.698 (46.047 13.329 ForeiAn ,r,,-&v vs v translaton.
.t . .. .c . ................................................................................................
.~~ - 1.739 107 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS..................... (33,490) 25,902 81,125 CASH AND CASH EQUIVALENTS:
Beginning of period.................................................................................................... 113.049 87.14 6.022 End of period ....... _ L7_2 &LL413MM &_ 2
UHtT PLEIMMtt2Y April 29, 2004 Mr. Greg Meyer Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Greg:
Pursuant to the requirements of 10 CFR140.21(e), Kansas City Power & Light Company is providing the attached audited Consolidated Statements of Cash Flows of it ability to make payment of its share of deferred premiums in an amount of $5 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 2003 is true and correct.
Sincerely, Attachment GREAT PLAINS ENERGY SERVICES I 1201 WALNUT STREET
- POST OFFICE BOX 418679 i KANSAS CITY, MO. 64141-9679 i (8i6) 556-2200 WWW.GREATPLAINSENERGY.COM
KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 2003 2002 2001 (thousands)
Cash Flows from Operating Activities Net income $117,155 $ 95,699 $ 119,691 Less: Loss from discontinued operations, net of income taxes (8,690) (3,967) (7.205)
Income from continuing operations 125,845 99,666 126,896 Adjustments to reconcile income to net cash from operating activities:
Cumulative effect of a change in accounting principles - 3.000 Depreciation and depletion 140,955 145,569 151,916 Amortization of:
Nuclear fuel 12,334 13,109 17,087 Other 9,350 9,546 15,108 Deferred income taxes (net) 34,285 11,355 22,010 Investment tax credit amortization (3,994) (4,183) (4,289)
Income from equity investments (24,514)
Gainonproperty - (1,603) -- (178) -(23,556)
Deferred storm costs - (20,149)
Minority interest (1,263) -
Other operating activities (Note 2) (34,536) 21,178 (33,646)
Net cash from operating activities 281,373 278,913 247,012 Cash Flows from Investing Activities Utility capital expenditures (148,675) (132,039) (262,030)
Allowance for borrowed funds used during construction (1,368) (979) (9,197)
Purchases of investments (3,520) (3,421) (42,601)
Purchases of nonutility property (147) (225) (47,774)
Proceeds from disposition of property 4,135 - 64,072 Hawthorn No. 5 partial insurance recovery 3,940 - 30,000 Hawthorn No. 5 partial litigation settlements 17,263 -
Loan to DTI prior to majority ownership - (94.000)
Other investing activities (4,045) (4,084) 8,087 Net cash from investing activities (132,417) (140,748) (353,443)
Cash Flows from Financing Activities Issuance of long-term debt - 224,539 249,277 Repayment of long-term debt (124,000) (227,000) (93,099)
Net change in short-term borrowings (341) (61,750) 4,177 Dividends paid - (78,246)
Dividends paid to Great Plains Energy (98,000) (105,617) (25,677)
Cash of KLT Inc. and GPP dividended to Great Plains Energy . . (19,115)
Equity contribution from Great Plains Energy 100,000 36,000 39,000 Other financing activities - (266) .- (4,269) _(4.660)
Net cash from financing activities (122,607) (138,097) 71,657 Net Change in Cash and Cash Equivalents 26,349 68 (34,774)
Cash and Cash Equivalents from Continuing Operations at Beginning of Year 171 103 34,877 Cash and Cash Equivalents from Continuing Operations at End of Year $ 26,520 $ 171 $ 103 Net Change in Cash and Cash Equivalents from Discontinued Operations S (307) $ (552) $ 859 Cash and Cash Equivalents from Discontinued Operations at Beginning of Year 307 859 Cash and Cash Equivalents from Discontinued Operations at End of Year S - S 307 $ 859 The disclosures regarding KCP&L Included Inthe accompanying Notes to Consolidated Financial Statements are an Integral part of these statements.
Kansas Electric Power Cooperative, Inc.
April 26, 2004 Mr. Mark Larson Wolf Creek Nuclear Operating Corporation P.O. Box 411 Burlington, KS 66839
Dear Mark:
Pursuant to the requirements of 10 CRF 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 $600,000.
The undersigned certifies that the foregoing memorandum with respect to Kansas Electric Power Cooperative, Inc.'s. cash flow for the year 2003 is true and correct to the best of her knowledge and belief.
Sincerely yours,
&&F, M&-,&&
Coleen M.Wells Phone: 785.273.7010 Controller Enclosure (1)
Fax: 785.271.4888 www.kepco.org PO. Box 4877 Topeka, KS 66604-0877 600 Corporate View Topeka, KS 66615 A TohK" Et gyCoopnrti"e _
KANSAS ELECTRIC POWER COOPERATIVE, INC.
Statements of Cash Flows Years ended December 31, 2003 and 2002 2003 2002 Cash flowNs from operating activities:
Net margin $ 2,128,103 2,959,033 Adjustments to reconcile net margin to net cash provided by operations:
Depreciation and amortization 3,896,097 3,913,199 Amortization of nuclear fuel 1,463,448 1,649,860 Amortization of deferred charges 4,057,683 4,062,169 Amortization of deferred incremental outage costs 1,640,259 1,538,471 Amortization of debt issue costs 454,861 387,524 Increase in arbitrage rebate payable 197,361 150,307 Payment to Department ofEnergy for decommissioning (82,566) (80,463)
Changes in assets and liabilities:
Member accounts receivable (450,097) (825,463)
Materials and supplies inventory (101,506) 129,696 Other assets and prepaid expenses (43,078) 33,496 Wolf Creek decommissioning obligation 1,338,561 49,007 Accounts payable 1,114,148 (1,148,703)
Payroll and payroll-related liabilities (1,732) 21,814 Accrued property taxes 202,596 (109,280)
Accrued interest payable 1,231,844 (41,386)
Other long-term liabilities 191,838 230,557 Net cash provided by operating activities 17,237,820 12,919,838 Cash flows from investing activities:
Additions to electric plant, net (1,550,146) (6,652,197)
Additions to nuclear fuel (2,436,946) (103,002)
Additions to deferred refueling costs (3,352,629) (2,072,139)
Increase in cash surrender value of life insurance contracts (284,993) (29,538)
Increase in decommissioning fund assets (1,338,561) (49,007)
Increase in other investments (36,65,) (746,204)
Net cash used in investing activities (8,999,931) (9,652,087)
Cash flows from financing activities:
Borrowings from cash surrender value of life insurance contracts 306,466 Repayment ofCOLI loan (76,440)
Repayment of long-term debt (8,220,390) (6,563,070)
Issuance of debt 2,270,262 5,675,641 Increase in debt issue costs (2,327,018)
Patronage capital contributions 100 Net cash used in financing activities (8,047,120) (887,329)
Net increase in cash and cash equivalents 190,769 2,380,422 Cash and cash equivalents at:
Beginning of year 8,036,064 5,655,642 End of year $ 8,226,833 8,036,064 See accompanying notes to financial statements.
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