ML051230436
| 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: I Pursuant to the requirements of 10 CFR 140.21, each operating reactor licensee is required to.: . i 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 i
. i 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,
. . . .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 NAoD 4 RO. Box 411 Burlington. KS 66839 Phone: (620) 364-8831 An Equal Opportunity Employer M/F/HCN/ET
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)
(ear Ended December 31.
2003 2002 CASH FLOWS FROM (USED IN) OPERATING ACTIVmES:
Net income (loss) ................................................................ 5 178,870 $ 85,010 $ (793,001)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Discontinued operations, net of tax .(78,790) 77,905 881,817 In on miA f ipl "..I.V1an W. 14"uzLILon ........................................... IV,,, 1lU 167,236 171,807 Amortization of nuclear fuel . ........................................................ 14,221 12.410 13,142 Amnt~n nf deferre v-ai 47-clel.ceak (11,828) (11,828) (11,828)
Amortization of prepaid corporate-owned life insurance . 12,622 14,320 20,321 Non-cash stock compensation. 7,916 6,885 14,006 Net changes in energy marketing assets and liabilities. 4,383 (1,855) 20,229 Loss on extinguishment of debt and settlement of putable/callable notes. 18,840 26,455 1,541 Net changes in fair value of call option . 2,178 22,609 Equity in earnings from investments............................................................................. *- (9,670)
Gain on sale of ONEOK stock . (99,327) -
Accrued liability to certain former officers.................................................................... 8,384 1,205 22,928 (Gain) loss on sale of utility plant and property . (503) (11,912) 1,424 Net deferred income taxes and credits........................................................................... (5,215) (100,275) 35,111 Changes in working capital items, net of acquisitions and dispositions:
Restricted cash. 7,825 (4.794) (6,596)
Aeelt -- ~ihle acwavl, nsswlD net us..... ............................................................................................ (11,561) (32,031) (4,534)
Inventories and supplies..... 10,368 8,607 (8,955)
Prepaid expenses and other r........................................................................................... (40,557) 16,897 (49,079)
Accounts payable.......................................................................................................... 12,182 6,231 (21,396)
Accrued taxes ................................................................ ................................................ 43,463 81,135 (7,834)
Other current liabilities .................................................. ................................................ (5,046) (84,021) (13.339)
Changes in other, assets........................................................ ................................................ 10,566 2,451 (30,869)
Changes in other, liabilities. ...................................... ................................................ 8.738 (12.245) 30.247 Cash flows from operating activities................. ................................................ 354.188 150.637 278.081 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Auuiions 10 property, plant and equipment ......................................................................... (188,447) (150,378) (126,763)
Removal, dismantlement and salvage of property, plant and equipment............................... (14.445) (13,094) (13,621)
Investment in corporate-owned life insurance...................................................................... (19,658) (19.599) (19,399)
Proceeds from investment in corporate-owned life insurance....................................... 7.859 Proceeds from sale of Protection One .................................................................................. 81,670 Proceeds from sale of Protection One bonds .... ........................ 26,640 Proceeds from sale of plant and property ............................................................................. 8,604 33,303 1,205 Proceeds from sale of intemational investment.................................................................... 11,219 Proceeds from sale of ONEOK stock................................................................................... 801,841 Issuance of officer loans and interest, net of payments......................................................... 2 438 (308)
Proceeds from other investments ......................................................................................... 9.591 801 18.296 Cash flows (used in) from investing activities.................................................. (84.824) 653.312 (132.731)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Short-term debt, net............................................................... ............................................... (1,000) (221,300)
Proceeds from long-term debt................................................ ............................................... 623,301 1,350,069 Retirements of long-term debt ............................................... ............................................... (1,188,081) (963,330) (1,021,993)
Funds in trust for debt repayments...................................... ............................................... 78 145,182 (135,000)
-.o -P - ax Z by_ _--- _- ._A +
Purchase o0 cull option investm ent....................................................................................... (65.785)
Repayment of capital leases................................................................................................. (4,977) (5,138) (5,019)
Borrowings against cash surrender value of corporate-owned life insurance ........................ 57,090 58,818 61,120 Repayment of borrowings against cash surrender value of corporate-owned life insurance.. (444) (419) (8,490)
Issuance of com mon stock, net ............................................................................................ 245,130 2,551 Cash dividends paid............................................................................................................. (56,189) (57,726) (73,535)
Retirement of preferred stock .............................................................................................. (1,547)
Acquisition of treasury stock ............................................................................................... (19,544)
Reissuance of treasury stock................................................................................................ 1.927 7.260 255 Cash flows (used in) financing activities.......................................................... (323.165) (881.138) (72.433)
Net cash (used in) from discontinued operations ........................................................................ (1.147 43.699 (48.059)
Foreign currency translation ....................................................................................................... - - 1.044 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS............................... (54,948) (33.490) 25,902 CASH AND)CASH EQUIVALENTS:
-79559 Beginniing of period-............................................................................................................. 113.049 -87.147 End of; period.......................................................................................................................4 Jif4 S11A24 i955 The accompanying notes are an integral part of these consolidated financial statements.
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 2004 2003 2002 Cash Flows from Operating Activities (thousands)
Net income 143,292 S 117,155 S 95,699 Less: Discontinued operations, net of income taxes (8,690) (3,967)
Income from continuing operations 143,292 125,845 99,666 Adjustments to reconcile income to net cash from operating activities:
Cumulative effect of a change in accounting principles 3,000 Depreciation and amortization 145,246 140,955 145,569 Amortization of:
Nuclear fuel 14,159 12,334 13,109 Other 7,719 9,350 9,546 Deferred income taxes, net 10,861 34,285 11,355 Investment tax credit amortization (3,984) (3,994) (4,183)
(Gain) loss on property 5,133 (1,603) (178)
Deferred storm costs_ (20,149) - -
Minority interest in subsidiaries (5,087) (1,263)
Other operating activities (Note 2) -
(1,080) (34,536) 21,178 Net cash from operating activities 316,259 281.373 278.913 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 Inthe accompanying Notes to Consolidated Financial Statements are an integral part of these statements.
"I -I I 0 I
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 Phone: 785.273.7010 Enclosure (1)
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 2003 Cash flows from operating activities:
Net margin $ 3,186,603 2,128,103 Adjustments to reconcile net margin to net cash provided by I operating activities:
Depreciation and amortization 3,817,830 3,977,830 Decommissioning 443,300 376,150 Amortization of nuclear fuel 1,795,148 1,559,637 Amortization of deferred charges 4,052,034 4,057,683 Amortization of deferred incremental outage costs 2,221,663 1,640,259 Amortization of debt issuance costs 668,799 454,861
-J Changes in assets and liabilities:
Member accounts receivable (111,404) (450,097)
Materials and supplies (126,980) i Other assets and prepaid expenses Accounts payable (76,018) 1,027,412 (101,506)
(43,078) 1,114,148 Payroll and payroll-related liabilities 20,594 (1,732)
Accrued property taxes 20,129 202,596 Accrued interest payable (1,256,675) 1,231,844 Restricted assets (71,032) (91,623)
Other long-term liabilities 205,374 306,634 Net cash provided by operating activities 15,816,777 16,361,709 Cash flows from investing activities:
Additions to electric plant, net (2,130,735) (1,631,880)
Additions to nuclear fuel (2,660,067) (2,533,135)
-J Additions to deferred incremental outage costs Investments in decommissioning fund assets (259,634)
(443,300)
(3,352,629)
(376,150)
Net cash used in investing activities (5,493,736) (7,893,794)
Cash flows from financing activities:
d Repayment of long-term debt (13,320,150) (8,220,390)
Issuance of debt 2,270,262 Increase in debt issuance costs (2,327,018)
Net cash used in financing activities (13,320,150) (8,277,146)
Net increase (decrease) in cash and cash equivalents (2,997,109) 190,769 Cash and cash equivalents at:
Beginning of year 8,226,833 8,036,064 End of year $ 5,229,724 8,226,833 Supplemental disclosures of cash flow information:
Cash paid during the year for interest $ 10,543,271 9,717,324 See accompanying notes to consolidated financial statements.
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