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RCED-84-76 1 (1984-01-26)

handle is hein.gao/gaobabnfy0001 and id is 1 raw text is: 



UNITED STATES GENERAL ACCOUNTING OFFICE
           WASHINGTON. D.C. 20548


AESOURCES COMIUNITY
-0 rONC'IIC -EVELCPMENT
     DIVISION


B-207463


The Honorable Richard L. Ottinger
Chairman, Subcommittee on Energy
  Conservation and Power
Committee on Energy and Commerce
House of Representatives


January 26, 1984


Dear Mr. Chairman:


Subject:


Lost DOE Sales to the Secondary Enriched Uranium
Market   Have    Resulted   in   Reduced    Revenues
(GAO/RCED-84-76)


     Your letter of July 25, 1983, expressed concern about a
number of issues related to the Department of Energy's (DOE's)
uranium enrichment program.     Under this program, DOE enriches
uranium for use as a fuel in nuclear power reactors. On November
15, 1983, we responded to your question concerning DOE's alloca-
tion of enrichment costs.1

     Another issue you asked us to address was the effect the
secondary enriched uranium market has on DOE's enrichment program
sales and revenues for fiscal years 1984 through 1988.     The sec-
ondary market is one in which utilities operating nuclear power
reactors become sellers of enriched uranium, generally at dis-
counted prices with the intent of disposing of their surplus
inventories.   These surpluses have accumulated in recent years
because many foreign and domestic utilities are contractually
obligated  to purchase enriched uranium beyond      their specific
needs.

     DOE has lost sales to secondary market transactions for
fiscal years 1984 through 1988 amounting to 9.4 million separative






lQuestions concerning DOE's allocation of costs were addressed in
our report:     DOE's Allocation of Costs for Uranium Enrichment
Services (GAO/RCED-84-64, Nov. 15, 1983).

                                                           (301635)


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