ML051230436

Guarantee of Payment of Deferred Premiums, 10 CFR 140.21

ML051230436
Person / Time
Site:	Wolf Creek
Issue date:	04/26/2005
From:	Larson M Wolf Creek
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CT 05-0028
Download: ML051230436 (7)

Text

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'NUCLEAR OPERATING CORPORATION Mark S. Larson Vice President and Chief Administrative Officer April 26, 2005 CT 05-0028 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 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.

Th'e 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 subsidiaryMofyGreat Plains Energy Incorporated, and Kansas Electric Power Cooperative, Inc. (KEPCo)i 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,

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i Mark S. Larson MSi/rlg Enclosures (3) cc:

J. N. Donohew (NRC), wle 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 An Equal Opportunity Employer M/F/HCN/ET NAoD 4

Westar Energy-LEE WAGES Vice President, Controller and International Generation March 16, 2005 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), 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 2004 is true and correct to the best of his knowledge and belief.

Since ely, Vice President, Controller Ims attachment cc: Carla Zoetmulder 818 South Kansas Avenue / PO. Box 889 /Topeka, Kansas 66601 Telephone: (785) 575-6320 / Fax: (785) 575-1730 Mobile: (785) 554-6320 Intemet: lee-wages@wr.com

WESTAR ENERGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)

CASH FLOWS FROM (USED IN) OPERATING ACTIVmES:

Net income (loss)................................................................

5 178,870 Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Discontinued operations, net of tax.(78,790)

In on m iA f

ipl "..I.V1an W.

14"uzLILon...........................................

Amortization of nuclear fuel.

Amnt~n nf deferre v-ai 47-clel.ceak Amortization of prepaid corporate-owned life insurance.

Non-cash stock compensation.

Net changes in energy marketing assets and liabilities.

Loss on extinguishment of debt and settlement of putable/callable notes.

Net changes in fair value of call option.

Equity in earnings from investments.............................................................................

Gain on sale of ONEOK stock.

Accrued liability to certain former officers....................................................................

(Gain) loss on sale of utility plant and property.

Net deferred income taxes and credits...........................................................................

Changes in working capital items, net of acquisitions and dispositions:

Restricted cash.

Aeelt

-- ~ihle net IV,,, 1lU 14,221 (11,828) 12,622 7,916 4,383 18,840 8,384 (503)

(5,215)

(ear Ended December 31.

2003 2002

$ 85,010

$ (793,001) 77,905 881,817 167,236 171,807 12.410 13,142 (11,828)

(11,828) 14,320 20,321 6,885 14,006 (1,855) 20,229 26,455 1,541 2,178 22,609 (9,670)

(99,327) 1,205 22,928 (11,912) 1,424 (100,275) 35,111 nsswlD acwavl, us.....

Inventories and supplies.....

Prepaid expenses and other r...........................................................................................

Accounts payable..........................................................................................................

Accrued taxes................................................................

Other current liabilities..................................................

Changes in other, assets........................................................

Changes in other, liabilities.

Cash flows from operating activities.................

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Auuiions 10 property, plant and equipment.........................................................................

Removal, dismantlement and salvage of property, plant and equipment...............................

Investment in corporate-owned life insurance......................................................................

Proceeds from investment in corporate-owned life insurance.......................................

Proceeds from sale of Protection One..................................................................................

Proceeds from sale of Protection One bonds Proceeds from sale of plant and property.............................................................................

Proceeds from sale of intemational investment....................................................................

Proceeds from sale of ONEOK stock...................................................................................

Issuance of officer loans and interest, net of payments.........................................................

Proceeds from other investments.........................................................................................

Cash flows (used in) from investing activities..................................................

7,825 (11,561) 10,368 (40,557) 12,182 43,463 (5,046) 10,566 8.738 354.188 (188,447)

(14.445)

(19,658) 81,670 26,640 8,604 11,219 2

9.591 (84.824)

(1,000) 623,301 (1,188,081) 78 (4,977) 57,090 (444) 245,130 (56,189) 1.927 (323.165)

(1.147 (4.794)

(32,031) 8,607 16,897 6,231 81,135 (84,021) 2,451 (12.245) 150.637 (150,378)

(13,094)

(19.599) 33,303 801,841 438 801 653.312 (963,330) 145,182 (65.785)

(5,138) 58,818 (419)

(57,726) 7.260 (881.138) 43.699 (6,596)

(4,534)

(8,955)

(49,079)

(21,396)

(7,834)

(13.339)

(30,869) 30.247 278.081 (126,763)

(13,621)

(19,399) 7.859 1,205 (308) 18.296 (132.731)

(221,300) 1,350,069 (1,021,993)

(135,000)

(5,019) 61,120 (8,490) 2,551 (73,535)

(1,547)

(19,544) 255 (72.433)

(48.059)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

Short-term debt, net...............................................................

Proceeds from long-term debt................................................

Retirements of long-term debt...............................................

Funds in trust for debt repayments......................................

-. o P

ax Z

by_

._A +

Purchase o0 cull option investm ent.......................................................................................

Repayment of capital leases.................................................................................................

Borrowings against cash surrender value of corporate-owned life insurance........................

Repayment of borrowings against cash surrender value of corporate-owned life insurance..

Issuance of com m on stock, net............................................................................................

Cash dividends paid.............................................................................................................

Retirement of preferred stock..............................................................................................

Acquisition of treasury stock...............................................................................................

Reissuance of treasury stock................................................................................................

Cash flows (used in) financing activities..........................................................

Net cash (used in) from discontinued operations........................................................................

Foreign currency translation.......................................................................................................

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS...............................

1.044 (54,948)

(33.490) 25,902 CASH AND Beginnii End of;

) CASH EQUIVALENTS:

ng of period-.............................................................................................................

-79559 period.......................................................................................................................4 The accompanying notes are an integral part of these consolidated financial statements.

1 13.049

-87.147 Jif4 i955 S11A24

6PH0T PLNIUUMt>T April 11,2005 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 to provide evidence of its' 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 2004 is true and correct.

Sincerely, Lori Wrigl Controller Attachment GREATPLAINSENERGYSERVICES

• 1201WALNUTSTREET

• POSTOFFICEBOX418679 KANSASCITYMO.64141-9679

• (8i6)556-2200 WWW.GREATPLAINSENERGY.COM

KANSAS CITY POWER & LIGHT COMPANY Consolidated Statements of Cash Flows Year Ended December 31 Cash Flows from Operating Activities Net income Less: Discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income to net cash from operating activities:

Cumulative effect of a change in accounting principles Depreciation and amortization Amortization of:

Nuclear fuel Other Deferred income taxes, net Investment tax credit amortization (Gain) loss on property Deferred storm costs_

Minority interest in subsidiaries Other operating activities (Note 2)

Net cash from operating activities 2004 143,292 143,292 145,246 2003 (thousands)

S 117,155 (8,690) 125,845 140,955 12,334 9,350 34,285 (3,994)

(1,603)

(1,263)

(34,536) 281.373 2002 S 95,699 (3,967) 99,666 3,000 145,569 14,159 7,719 10,861 (3,984) 5,133 (5,087)

(1,080) 316,259 13,109 9,546 11,355 (4,183)

(178)

(20,149) - -

21,178 278.913 Cash Flows from Investing Activities Utility capital expenditures (190,548)

(148,675)

(132,039)

Allowance for borrowed funds used during construction (1,498)

(1,368)

(979)

Purchases of investments (3,553)

(3,520)

(3,421)

Purchases of nonutility property (254)

(147)

(225)

Proceeds from sale of assets 7,465 4,135 Hawthorn No. 5 partial insurance recovery 30,810 3,940 Hawthorn No. 5 partial litigation settlements 1,139 17,263 Other investing activities (7,100)

(4,045)

(4,084)

Net cash from investing activities (163,539)

(132,417)

(140,748)

Cash Flows from Financing Activities Issuance of long-term debt 224,539 Repayment of long-term debt (209,140)

(124,000)

(227,000)

Net change in short-term borrowings (21,959)

(341)

(61,750)

Dividends paid to Great Plains Energy (119,160)

(98,000)

(105,617)

Equity contribution from Great Plains Energy 225,000 100,000 36,000 Issuance costs (2,362)

(266)

(4,269)

Net cash from financing activities (127,621)

(122.607)

(138,097)

Net Change in Cash and Cash Equivalents 25,099 26,349 68 Cash and Cash Equivalents from Continuing

- Operationisat Beginning of Year-26,520 171 103 Cash and Cash Equivalents from Continuing Operations at End of Year S 51,619 S 26,520 171 Net Change in Cash and Cash Equivalents from Discontinued Operations S

(307)

(552)

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

307 The disclosures regarding KCP&L included In the accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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0 Kansas Electric Power Cooperative, Inc.

April 19, 2005 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 2004 is true and correct to the best of her knowledge and belief.

Sincerely yours, volf rn OLa Coleen M. Wells VP Finance, and Controller Enclosure (1)

Phone: 785.273.7010 Fax: 785.271.4888 www.kepco.org PO. Box 4877 Topeka, KS 66604-0877 600 Corporate View Topeka, KS 66615 A Twlon Ewgy Coprwnve

KANSAS ELECTRIC POWER COOPERATIVE, INC.

Consolidated Statements of Cash Flows Years ended December 31, 2004 and 2003 2004 Cash flows from operating activities:

Net margin 3,186,603 Adjustments to reconcile net margin to net cash provided by I

operating activities:

Depreciation and amortization 3,817,830 Decommissioning 443,300 Amortization of nuclear fuel 1,795,148 Amortization of deferred charges 4,052,034 Amortization of deferred incremental outage costs 2,221,663 Amortization of debt issuance costs 668,799

-J Changes in assets and liabilities:

Member accounts receivable (111,404)

Materials and supplies (126,980) i Other assets and prepaid expenses (76,018)

Accounts payable 1,027,412 Payroll and payroll-related liabilities 20,594 Accrued property taxes 20,129 Accrued interest payable (1,256,675)

Restricted assets (71,032)

Other long-term liabilities 205,374 Net cash provided by operating activities 15,816,777 Cash flows from investing activities:

Additions to electric plant, net (2,130,735)

Additions to nuclear fuel (2,660,067)

Additions to deferred incremental outage costs (259,634)

-J Investments in decommissioning fund assets (443,300)

Net cash used in investing activities (5,493,736)

Cash flows from financing activities:

d Repayment of long-term debt (13,320,150)

Issuance of debt Increase in debt issuance costs Net cash used in financing activities (13,320,150)

Net increase (decrease) in cash and cash equivalents (2,997,109) 2003 2,128,103 3,977,830 376,150 1,559,637 4,057,683 1,640,259 454,861 (450,097)

(101,506)

(43,078) 1,114,148 (1,732) 202,596 1,231,844 (91,623) 306,634 16,361,709 (1,631,880)

(2,533,135)

(3,352,629)

(376,150)

(7,893,794)

(8,220,390) 2,270,262 (2,327,018)

(8,277,146) 190,769 Cash and cash equivalents at:

Beginning of year End of year Supplemental disclosures of cash flow information:

Cash paid during the year for interest 8,226,833 5,229,724 10,543,271 8,036,064 8,226,833 9,717,324 See accompanying notes to consolidated financial statements.

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