USEC Signs 10-Year, $725 Million Contract With TVA
--Agreement Covers Requirements for Three Reactors--
January 4, 2000 08:38 AM Eastern Time
BETHESDA, Md.--(BUSINESS WIRE)--Jan. 4, 2000--
USEC Inc. announced today that its wholly owned subsidiary, United States Enrichment Corporation, has signed a contract to supply enriched uranium product to the Tennessee Valley Authority (TVA). Under the agreement, which has an estimated value of $725 million, USEC will provide uranium enrichment services and uranium feed to fuel TVA's Sequoyah 1 and 2 and Watts Bar 1 commercial nuclear power reactors. The 10-year contract begins in calendar year 2001 and supplies 100 percent of enrichment requirements for the three reactors, with options for extension.
"This long-term commitment ensures the continuity of our relationship with TVA, an important USEC customer and supplier," said USEC President and CEO William H. Timbers. "For nearly 30 years, USEC and TVA have maintained a very positive and significant supplier/buyer relationship. This contract will cement our partnership well into the future," he added.
Uranium enrichment is a crucial step in producing fuel for commercial nuclear reactors, which supply nearly 20 percent of the nation's electricity. USEC is the sole domestic producer of enriched uranium.
TVA is the nation's largest producer of electricity, and its power system is self-financed. TVA provides power to large industries and 159 power distributors that serve 8 million consumers in seven southeastern states.
USEC Inc. USU is the world leader in the sale of uranium fuel enrichment services for commercial nuclear power plants. A global energy company, USEC has its headquarters in Bethesda, Maryland, and operates production plants in Kentucky and Ohio.
CONTACT: USEC, Bethesda Charles Yulish, 301/564-3391 or Elizabeth Stuckle, 301/564-3399
|
