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
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RG-9.4
Download: ML003740179 (4)

U.S. NUCLEAR REGULATORY COMMISSION6mpember 1978REGULATORY GUIDE OFFICE OF STANDARDS DEVELOPMENT REGULATORY GUIDE 9.4 SUGGESTED FORMAT FOR CASH FLOW STATEMENTS SUBMITTED AS GUARANTEES OF PAYMENT:OF RETROSPEC1A. INTRODUCTIONIVE PREMIUMS statements of changes i n h al position' (sources and~ uses of funds) t ~arc ni~ ally prepared byIn 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 t 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 premiums. 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 projection 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 limmonths after submission of the state nt. In para- ited to (a) net income after taxes. (b) dividends pai graph 140.2I1(e),;cash fw is defined as "cash avail- (c) retained earnings, (d) depreciation and amortizaable 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 inLicensee a e ly owed this definition vestment tax credits. Other categorieb are not neceswhen 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 statepreparing cash flow statements and to the staff of ment covers all or some other owners. If certain ownanalyzing them. This simplified format is based oni ers ari providing guarantees in forms other! than cashWSNNC 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 Conw.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 i1saa.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 ownership shares should be indicated on one statemen . Total cash flow projected for the year should be divided by four to indicate that cash how can be generated and would be available for payment of retrospective premiums within three months after submission of the statement. The staff, of course, recognizes that this calculation may not reflect the licensee's aclual quarterly cash flow positio . 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 statement as shown in Table I. Also, any significant deviations between the two years in either total cash flow or its components should be explained b. the license C. IMPLEMENTATION Because the format suggested in this guide is a simplified format based on financial statements normally prepared by utilities, it may be used inmediately by licensees in developimg annual submittals required in 10 CFR § 140.21.K9.4-2,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 LiabilityPrior Year Actual Total SXXXXXX (XXX.XXX) $ XX.XXX $XXXXXX XX,XXX (XXXXXX) $XXX,XXX $XXX.XXX S XXMXXXProjecion Year Total SXXXXXX (XXX.XXX) $ XX,XXX $XXX.XXX XX.XXX (XXX.XXX) SXXX ,XXX SXXX.XXX $ XXXXXUnit name XXX.XX% Unit name XX.XX% Unit name XX.XX%$ XX.XXX9.4-3I UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON. D. C. 20555 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE. $300POSTAGE ANO PECS PAI*O U.S. NUCLEAR REGULATORY COM oISSIONKr i i