Department of Energy's Uranium Enrichment Activities

The Department of Energy (DOE) negotiated a 354-megawatt year reduction in fiscal year (FY) 1978 electrical power purchases for uranium enrichment purposes from the Tenessee Valley Authority (TVA). DOE took this action to give it more operating flexibility in the 1980's in the event that enrichment demand is less than expected. Because TVA cannot supply enough electrical power, DOE has operated its enrichment plants below capacity since 1972 and expects to continue to do so until 1984. TVA has been unable to deliver all the electrical power DOE needs to operate its enrichment plants at full capacity because its nuclear power plant construction program is behind schedule. Enrichment services prices and revenues will not be affected in FY 1978 by the reduction in electrical power purchases but will be affected over a longer period of time. However, barring unforeseen production losses, DOE should be able to meet its contract demand for enrichment services in the 1980's.