Regulatory Guide 9.4

Suggested Format for Cash Flow Statements Submitted as Guarantees of Payment of Retrospective Premiums

ML003740179
Person / Time
Issue date:	09/30/1978
From:	Office of Nuclear Regulatory Research
To:
References
RG-9.4
Download: ML003740179 (4)

U.S. NUCLEAR REGULATORY COMMISSION

6mpember 1978 REGULATORY GUIDE

OFFICE OF STANDARDS DEVELOPMENT

REGULATORY GUIDE 9.4 SUGGESTED FORMAT FOR CASH FLOW STATEMENTS

SUBMITTED AS GUARANTEES OF PAYMENT:

OF RETROSPEC1

A. INTRODUCTION

IVE PREMIUMS

statements of changes i n h al position' (sources and~ uses of funds) t

~arc ni~ ally prepared by In December 1975. Congress extended and mod- utilities and other ce as one of a number of ified the Price-Anderson Act. One modification was conventional fina ts.

to establish retrospective premiums as the second layer of financial protection in the three-layered B. SUGO

T

MAT FOR CASH FLOW

Price-Anderson system. To implement this modifi- STA

ITED AS GUARANTEES

cation, the Commission promulgated in August 1977 Y

OF RETROSPECTIVE

a regulation (10 CFR § 140.21)_that requires each PREMIUMS.I

licensee to provide evidence that it maintains, any e

preparing cash flow statements should one or a combination of six guarantees of payment lb he guidelines presented below. A sample of deferred or retrospective premium

s. Such a i

sicue sTbe1 guarantee would be in an amount of $10 million I

stcue sTbeI

nurally for each licensed operating reactor rate~

' The statement title should indicate that the

100 MW(e) or more.

icensee's cash flow statement refers to a particular Since implementation of § 140.21, th

01 s-

plant or plants and is projected over the appropriate sion has found that most licensees prefer t uara year. Licensees should use either the calendar year or payment of retrospective premiu i

'g the corporate fiscal year for which they'have the certified financial statement shiit t

c'ash latest projections.

flow can be generated and wou t ea lable for

2. The components or line items of cash flow payment of retrospective premi in three against which licensees should report should be lim months after submission of the state nt. In para- ited to (a) net income after taxes. (b) dividends paid.

graph 140.2I1(e),;cash fw is defined as "cash avail- (c) retained earnings, (d) depreciation and amortiza able to a compan a operating expenses, taxes, tion adjustments, (e) allowance for funds used during interest charges, nds have been paid."

construction, and (f) deferred income taxes and in Licensee a

e ly owed this definition vestment tax credits. Other categorieb are not neces when sumsttmn.

However, the sary and should be included only if documented and irequired n mt submitted in somewhat defined. Negative values should be indicated either in differe

0

S

some licensees have included parentheses or by minus signs. If a cash flow line unu

, "other sour~es- or "external item is not applicable to a particular utility or plant finan eht mnot appropriate or require further (e.g., allowance for funds used during construction),

clarifica

. These non-standardized submissions the licensee should explain why.I

add to the ime required by the NRC staff to analyze

3. If a particular plant has multiple owners. the them. This guide suggests a simplified format that, cash flow of each owner should be included unless if used, should reduce the burden to licensees of the principal licensee states that its cash flow state preparing cash flow statements and to the staff of ment covers all or some other owners. If certain own analyzing them. This simplified format is based oni ers ari providing guarantees in forms other! than cash WSNNC REGUL.ATORY GUIDES

shmua~

oid be am w to SweW'v or "w cm'sua U.Sd Rep*Wry Guido am heaaed

0 deabe w4d woe we h" ID 00 Publc SmomUr= h Uaeedi -ws S

-

O1w00

NAC Mff Of

10

meApef pwo of Was Cwwrg*eianecisgdiomw ID I a-eIIb go MR in gwu- Thes -d w Issued ki tos *AowbVg sonWood dimiorw~

-

eI

spaeena ar odwW~

ecde D~

padaid gulkno ID

a-im Segamry Ciaddew am M

f~wme NPmA~daftb Wad m

.Nomw Raama

41. Uroxacb atla h oam bar uuqahed. Meowdi wad e0AWSdiew tiwWm *--. =.

ZResawhd NOs MReecs'

7. ?Wupofle on-XI *wjrn m be awwobb K 6ws pwwW a bohb fa t OWN

2I Fuck wad Muterh Fecltat

&2=

0=elml eed C a 0im"o www of aba Own ora wa1 Man DV a*ij AaL

LVacaciea MW

e AesW

-4w LWI. eih wad PluMPecdo It. Gener Con

w. nean Orosai Imnwe

1has Eale a~e we waAmnge foe~tr ehagie sopie of beAed iudue luid way be o.eprod) wa fr

• at aws.

enbd

@;:

I

einý e m~uW

mmdtaer.

wmm an euwnuetc ftvaudan bet fo drb~

meop ofn gau s

Mis gAde. I

-ne wmilh

&Aa tiwo rnaiuet be b An.

be Canuydulan.

Wab0*vWoC.CZ.1M

Amrialn: Direcow.

ofla pwoaafti UNUa In uekaf

"w fewedf taw i 1 sa

a. Tcanim softawla Caal

flow statements. these should be enclosed with the guarantee of the principal licensee. Also. the owner's total contingent liability for retrospective premiums for all licensed nuclear plants in which it has owner ship shares should be indicated on one statement.

4. Total cash flow projected for the year should be divided by four to indicate that cash how can be gen erated and would be available for payment of retro spective premiums within three months after submis sion of the statement. The staff, of course, recognizes that this calculation may not reflect the licensee's aclual quarterly cash flow position.

5. An important pan of the staff's analyses of cash flow statements is a comparison of projected cash flow with actual cash flow for the most recent com- pleted annual period. Thus, it would be help~ul to have both years juxtaposed, on the cash flow state ment as shown in Table I. Also, any significant de viations between the two years in either total cash flow or its components should be explained b. the licensee.

C. IMPLEMENTATION

Because the format suggested in this guide is a simplified format based on financial statements nor mally prepared by utilities, it may be used in mediately by licensees in developimg annual submit tals required in 10 CFR § 140.21.

K

9.4-2

,I

Table 1 Suggested Format for a Cash Flow Statement

19XX Internal Cash Flow Projection for (Name) Nuclear Power Station (Dollars In Thousands)

Net Income After Taxes Less Dividends Paid Retained Earnings Adjustments:

Depreciation and Amortization Deferred Income Taxes and Investment Tax Credits Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow Percentage Ownership in All Operating Nuclear Units Maximum Total Contingent Liability Prior Year Actual Total SXXXXXX

(XXX.XXX)

$ XX.XXX

$XXXXXX

XX,XXX

(XXXXXX)

$XXX,XXX

$XXX.XXX

S XXMXXX

Projecion Year Total SXXXXXX

(XXX.XXX)

$ XX,XXX

$XXX.XXX

XX.XXX

(XXX.XXX)

SXXX ,XXX

SXXX.XXX

$ XXXXX

Unit name XXX.XX%

Unit name XX.XX%

Unit name XX.XX%

$ XX.XXX

9.4-3 I

UNITED STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON. D. C. 20555 OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE. $300

POSTAGE ANO PECS PAI*O

U.S. NUCLEAR REGULATORY

COM oISSION

K

r i

i