Lost DOE Sales to the Secondary Enriched Uranium Market Have Resulted in Reduced Revenues

Pursuant to a congressional request, GAO determined the effect that the secondary enriched uranium market has on the Department of Energy (DOE) enrichment program sales and revenues for fiscal years (FY's) 1984 through 1988.

GAO found that DOE has lost sales to secondary market transactions which amount to $9.4 million of separative work units of enriched uranium. This represents an estimated revenue reduction of more than $1.3 billion, or about 9 percent of the estimated $14 billion DOE revenue for the period. DOE officials noted that, if current price discounts continue to be offered on the secondary market through FY 1988, DOE sales losses for the period could increase and revenues could be reduced by more than $4 billion, or nearly a third of the estimated DOE revenue. Further, they believe that there is potential for more sales losses if additional price discounts are offered by those utilities holding surplus inventories.