ML041350258

Guarantee of Payment of Deferred Premiums, 10 CFR 140.21

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

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-LFCREEK

'NUCLEAR OPERATING CORPORATION Mark S. Larson Vice President and Chief Administrative Officer

MAY 0 7 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)........................................................................................................

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Discontinued operations, net of tax......................................................................

Cumulative effect of accounting change..............................................................

Depreciation and amortization.............................................................................

Amortization of deferred gain from salc-leaseback..............................................

Amortization of non-cash stock compensation.

Net changes in energy trading assets and liabilities..............................................

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

Net changes in fair value of call option................................................................

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

Impairment on investments..................................................................................

(Gain) loss on sale of marketable securities.........................................................

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

Accrued potential liability....................................................................................

Corporate-owned life insurance...........................................................................

Net deferred taxes................................................................................................

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

Restricted cash.....................................................................................................

S 85,010 77,905 167,236 (11,828) 6,885 (1,855) 26,455 2,178 500 (99,327)

(11,912) 1,205 (41,133)

(94,838)

(4,794)

(31,770) 6,901 61,048 8,328 (76,565) 78,911 1,170 (23,3041 126.A6 (150,378)

(19,599) 33,303 801,841 438 801 666.406 S (793,001)

S (20,876)

Accounts receivable, net

__I.+

P oSand 881,817 171,807 (11,828) 14,006 20,229 1,541 22,609 (9,670) 330 1,424 22,928 (31,773) 24,435 (6,596)

(4,795)

(8,955)

(3,482)

(21,026) 4,324 (22,640) 1,146 1S.14 270S979 (126,763)

(19,399) 1,205 (309) 18.29 (126.97) 1V ILU1 sb UUU bUVL)P t Prepaid expenses and other..............

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

Accrued and other current liabilities Accue tae...................

s....................................................................

wsun, aus ast..............................................................................................

Changes in other, liabilities........................................................................................

Cash flows from operating activities.

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:

Additions to property, plant and equipment................................................................

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

Proceeds from sale of utility plant and property.........................................................

Proceeds from sale of marketable securities...............................................................

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

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

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

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:

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

Proceeds of long-term debt.........................................................................................

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

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

Purchase of call option investment.............................................................................

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

Issuance of common stodc, net...................................................................................

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

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

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

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

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

98,903 (18,694) 185,519 (11,828) 12,840 10,683 (1,395)

(4,721) 11,075 1,861 (47,627)

(12,200)

(5,868) 31,944 (48,369)

(2,146)

(28,541) 2,245 (23,875)

(11,116) 58 117.872 (226,996)

(19,852) 2,829 (1,973) 63,198 (1821794) 187,300 107 (50,388) 57,759 5,604 (67,259)

(545)

(866) 899 132,611 13.329 107 81,125 (221,300) 1,350,069 (963,330) -- (1,028,379) 145,182 (135,000)

(65,785) 58,399 52,630 2,551 (57,726)

(73,535)

(1,547)

(19,544) 7.260 256 (876.000 (73.799 49.698 (46.047 1.739 Net cash from (used in) discontinued operations.

ForeiAn,r,,-&v translaton.

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

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

CASH AND CASH EQUIVALENTS:

Beginning of period....................................................................................................

End of period.......

(33,490) 25,902 113.049 87.14 6.022 L7_2 LL4

& 13MM 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 Less: Loss from 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 depletion Amortization of:

Nuclear fuel Other Deferred income taxes (net)

Investment tax credit amortization Income from equity investments

$117,155 (8,690) 125,845

$ 95,699 (3,967) 99,666 3.000 140,955 145,569

$ 119,691 (7.205) 126,896 151,916 17,087 15,108 22,010 (4,289)

(24,514) 12,334 9,350 34,285 (3,994) 13,109 9,546 11,355 (4,183)

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 1 00,000 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 In the 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 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 TohK" Et gyCoopnrti"e

KANSAS ELECTRIC POWER COOPERATIVE, INC.

Statements of Cash Flows Years ended December 31, 2003 and 2002 2003 Cash flowNs from operating activities:

Net margin Adjustments to reconcile net margin to net cash provided by operations:

Depreciation and amortization Amortization of nuclear fuel Amortization of deferred charges Amortization of deferred incremental outage costs Amortization of debt issue costs Increase in arbitrage rebate payable Payment to Department of Energy for decommissioning Changes in assets and liabilities:

Member accounts receivable Materials and supplies inventory Other assets and prepaid expenses Wolf Creek decommissioning obligation Accounts payable Payroll and payroll-related liabilities Accrued property taxes Accrued interest payable Other long-term liabilities Net cash provided by operating activities Cash flows from investing activities:

Additions to electric plant, net Additions to nuclear fuel Additions to deferred refueling costs Increase in cash surrender value of life insurance contracts Increase in decommissioning fund assets Increase in other investments Net cash used in investing activities Cash flows from financing activities:

Borrowings from cash surrender value of life insurance contracts Repayment of COLI loan Repayment of long-term debt Issuance of debt Increase in debt issue costs Patronage capital contributions Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at:

Beginning of year End of year See accompanying notes to financial statements.

7 2,128,103 3,896,097 1,463,448 4,057,683 1,640,259 454,861 197,361 (82,566)

(450,097)

(101,506)

(43,078) 1,338,561 1,114,148 (1,732) 202,596 1,231,844 191,838 17,237,820 2002 2,959,033 3,913,199 1,649,860 4,062,169 1,538,471 387,524 150,307 (80,463)

(825,463) 129,696 33,496 49,007 (1,148,703) 21,814 (109,280)

(41,386) 230,557 12,919,838 (1,550,146)

(2,436,946)

(3,352,629)

(284,993)

(1,338,561)

(36,65,)

(8,999,931)

(6,652,197)

(103,002)

(2,072,139)

(29,538)

(49,007)

(746,204)

(9,652,087) 306,466 (76,440)

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

(8,047,120) 190,769 (6,563,070) 5,675,641 100 (887,329) 2,380,422 8,036,064 8,226,833 5,655,642 8,036,064