ML13213A402

Wolf Creek, Guarantee of Payment of Deferred Premiums, 10CFR140.21

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

Text

W$L F CREEKNUCLEAR OPERATING CORPORATION Annette F. StullVice President and Chief Financial Officer May 7, 2013CO 13-0003U. S. Nuclear Regulatory Commission ATTN: Document Control DeskWashington, D.C. 20555

Subject:

Docket No. 50-482: Guarantee of Payment of Deferred

Premiums, 10 CFR 140.21Gentlemen:

Pursuant to the requirements of 10 CFR 140.21 "Licensee guarantees of payment of deferredpremiums,"

each operating reactor licensee is required to maintain financial protection throughguarantees 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 inthe amount of seventeen million five hundred thousand

dollars, as determined by 10 CFR140.11(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 EnergyIncorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo),

have each providedaudited Consolidated Statements of Cash Flows in order to demonstrate sufficient funds areavailable 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. StullAFS/rltEnclosure I Kansas Gas and Electric Company Consolidated Statements of Cash FlowsII Kansas City Power & Light Company Consolidated Statements of Cash FlowsIII Kansas Electric Power Cooperative, Inc. Statement of Cash Flowscc: A. T. Howell (NRC) w/eC. F. Lyon (NRC), w/eN. F. O'Keefe (NRC), w/eSenior Resident Inspector (NRC), w/eP.O. Box 411 / Burlington, KS 66839 / Phone: (620) 364-8831An Equal Opportunity Employer M/F/HCNET Enclosure I to CO 13-0003Kansas Gas and Electric Company Consolidated Statements of Cash Flows KGEOMay 1,2013Mr. Todd N. LaflinWolf Creek Nuclear Operating Corporation PO Box 411Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21 (e), attached is the 2012 auditedConsolidated Statements of Cash Flows as evidence of Kansas Gas & ElectricCompany's ability to make payment of its share of deferred premiums in anamount of $8.23 million.Sincerely, Vice Presid nt, Controller Westar Energy, Inc.attachment 818 South Kansas Avenue / PO, Box 889 /Topeka, Kansas 66601Office Telephone:

(785) 575-6300

/INDEPENDENT AUDITORS' REPORTTo the Board ot Directors and Stockholder ofKansas Gas and Electric CompanyTopeka, KansasWe 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 ofDecember 31, 2012 and 2011, and the related consolidated statements of income, changes in equity, and cash flows for theyears 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, andmaintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that arefree 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 ouraudits in accordance with auditing standards generally accepted in the United States ofAmerica.

Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free frommaterial 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 ofmaterial 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 alsoincludes 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.OpinionIn 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 theiroperations and their cash flows for the years then ended in accordance with accounting principles generally accepted in theUnited States of America.Is/ Deloitte

& Touche LLPKansas City, MissouriFebruary 28, 20133 KANSAS GAS AND ELECTRIC COMPANYCONSOLIDATED STATEMENTS OF CASH FLOWS(Dollars In Thousands)

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:

N et Incom e ..... ... ...............

.................

............

...........

...........

.... .SAdjustments to reconcile not iecome to net cash provided by operatn g activites Depreciation and amnotmzatlon

...................................................

...... ..........

Am ortization or nuclear ruci .................................

..........

....................

Amotization of deferred regulatory pin from sale leaseback

.............

............

Amorltzatlon ocorperate-owned lire insurance

...............................................................

Not income L.,s and credits ...................-.......

' ...........

Allowance for equity funds used during contruction...................................................

Changes in working capital items:A ccoutts receiva ble .......................................................................................

........Fu l Invento y d supplies

........................................................................................

Prepaid e.penses and other....................................................

A ecounts payable .. .... .... ..........

................

.......................

................................

Other current liabilities

... ..... ...........

C hanges in other nr sets ...........

.... ........................

..................................

C h n es in other li biities .... .....................................................

....... ..............

.............

Year Ended December 31.2012 201198.446 S 53.765119.92924.369(5.4")20,00025,964(7.049)(2,110)(6.990)19.78519.728(61,826)(4,755)131.74021.151(5,495)19.40011.752(2900)(4,03D)(10,642)(38,468)9,243(64,405)211(1.737) 3.483Cash Flows from Operating Activities...........................

......................

238.239 122.835CASH FLOWS FROM (USED IN) INVES!riNo ACTIVITIES:

Additions o prorly. plant ond 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 45.495Investment in

,oowned life insurance

........

.1 ... ...........

..................

1................

..... (18,167)

(18,952)Proceeds rrom investment in corporaso-owned l ire insurance

...................

32,718 249Repaym eit oradvatce to pa rn. t ..... .............................

................................

...................

.172,956Oher invesngs activities

....................................................

890 2.199Cash Flows used in Investing Activities

........................

........

.............................

(416,837)

(196.372)

CASlI FLOWS FROM (USED IN) PINANC ING ACTIViTIES:

Rctirem ents of long-term t ....................

.......................................................................

(13,318)

(23)Retllements or long-term debt of varable interest CvnlIly-

.I .... ...........

.....

(18,079)Borrowings from parent .....................................................................................................

14.425 49,299Investment by parent .....................

....... ..........

160.457Borrowings against cash surrender value of corpora't-owned lire Insurance

.........................

67,791 67,562Repaymein oer rwrmvip st cush surrender value of *orporale-otned life imsanince

....... (31.591)

(240)I)vidends to par nt com pany ......................

...................

...........

c.......................................

-(25.000)Cash Flows from Flnancing Activities

..... ..............

...........

.........

...............

..... ..........

118," 78 73.517NET IN CASH AND CASH EQUIVALENTS.............

.........

... ..................

--CASII ANDCASH EQUIVALENTS, Beginr gf e of period .........................................................

... ........

........

... .End ofperiod

..............................

..... ......................................................

.. ...... .-. $SUPPLEMENTAL DISCLOSURES OF CASIi FLOW INFORMATIONK CAS14 PAID FOR:Interest on financing activities, net or amount capital d ......................

...... $Interest on rinancing activltics of variable interes l entity ...........................................

NON-CASII INVESTING TRANSACTIONS:

Property, plant and equipment additions

..........

.............

...................

52.942 S 56.68614.022 15.04341,54622.070The accompn) ing notes am an Intpgral pan of these consolidated financial statementsn

'11M -----6 Enclosure II to CO 13-0003Kansas City Power & Light Company Consolidated Statements of Cash Flows April 30, 2013Wolf Creek Nuclear Operating Corporation PO Box 411Burlington, KS 66839

Dear Todd:

Pursuant to the requirements of 10 CFR 140.21(e),

Kansas City Power & LightCompany, is providing the attached audited Consolidated Statements of CashFlows as evidence of the ability to make payment of its share of deferredpremiums in an amount of $8.23 million.The undersigned certifies that the foregoing memorandum with respect toKansas City Power & Light Company's cash flow for the year 2012 is true andcorrect to the best of their knowledge and belief.Sincerely, Lori WrightVice President

-Business Planning and 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 COMPANYConsolidated Statements of Cash FlowsYear Ended December 31Cash Flows from Operating Activities 2012(millions)

-.-INet income $ 141.6Adjustments to reconcile income to net cash from operating activities:

Depreciation and amortization 185.6Amortization of:Nuclear fuel 24.7Other 30.1Deferred income taxes, net 60.2Investment tax credit amortization (1.8)Other operating activities 27.9Net cash from operating activities 468.3Cash 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 20.9Other 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 Net change in collateralized short-term borrowings Net money pool borrowings Dividends paid to Great Plains EnergyOther134.015.0(4.7)(96.0)0.135.73.31.9$ 5.2Net cash from financing activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of YearCash and Cash Equivalents at End of Year Enclosure III to CO 13-0003Kansas Electric Power Cooperati'e, Inc. Statement of Cash Flows Kansas ElectricPower Cooperative, Inc.P.O. Box 4877, Topeka, KS 66604-0877 600 Corporate View, Topeka, KS 66615Phone (785) 273-7010 Fax (785) 271-4888www.kepco.org April 26, 2013Mr. Todd N. LaflinWolf Creek Nuclear Operating Corporation P.O. Box 411Burlington, 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 abilityto 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 KansasElectric Power Cooperative, Inc.'s. Cash flow for the year 2012 is true and correct to thebest of their knowledge and belief.Sincerely yours,I&,,fli de'Coleen M. WellsVP and CFOEnclosure (1)

KANSAS ELECTRIC POWER COOPERATIVE, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFor the years endingDecember 31,2012 2011Cash Flows From Operating Activities Net marginAdjustments to reconcile net margin to net cash flows from operating activities Depreciation and amortization Decommissioning Amortization of nuclear fuelAmortization of deferred chargesAmortization or deferred incremental outage costsAmortization of debt issuance costsChanges inMember accounts receivable Materials and suppliesOther assets and prepaid expenseAccounts payablePayroll and payroll-related liabilities Accrued property taxAccrued interest payableAccrued income taxesOther long-term liabilities Net cash flows from operating activities Cash Flows From Investing Activities Additions to electrical plantAdditions to nuclear fuelAdditions to deferred chargesAdditions to deferred incremental outage costsInvestments in decommissioning fund assetsInvestments in associated organizations Investments in bond reserve assetsProceeds from the sale of propertyNet cash flows from investing activities Cash Flows From Financing Activities Principal payments on long-term debtProceeds from issuance of long-term debtPayments unapplied

$ 11,916,571 6,417,670 1,500,024 3,004,990 4,245,720 7,179,415 86,953(5,624,402)

(899,836)

(305,776) 2,607,180 17,531180,292(34,313)(847)(106,340) 30,184,832 (9,658,692)

(3,709,772)

(280,455)

(900,384)

(1,966,895) 304,392(24,930)7,958(16,228,778)

(18,781,860) 1,048,000 (2,388,504)

(20,122,364)

(6,166,310) 8,990,444

$ 2,824,134

$ 10,417,400

$ 10,862,736 5,895,848 47,3172,604,250 4,298,277 7,965,177 95,2434,542,945 (749,197)

(32,946)(754,741) 3,0546,482(107,769)

(2,182)(1,038,178) 33,636,316 (5,684,518)

(2,330,827)

(21,452)(13,911,758)

(572,960)

(195,045)

(9,279)20,504(22,705,335)

(17,676,717) 8,523,204 2,863,733 (6,289,780) 4,641,201 4,349,243

$ 8,990,444

$ 10,974,100 Net cash flows from financing activities Net (decrease) increase in cash and cash equivalents Cash and Cash Equivalents, Beginning of YearCash and Cash Equivalents, End of YearSupplemental Disclosure of Cash Flow Information Interest paidSee Notes to the Consolidated Financial Statements 7