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RCED-83-196 1 (1983-07-15)

handle is hein.gao/gaobabnas0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 July 15, 1983 01SOURCaU. COMMUNITY, ANO ECONOMIC OIVILO MINI OaVeSDON AESTRIeT to he refeaed otmuri, e ..e B-207463 Acco : .... ni th ! V'Jis of ,e.PecAikc approval RELEASED The-Honorable Gordon J. Humphrey Chairman, Subcommittee on Regional and Community Development Committee on Environment and Public Works United States Senate 121938 Dear Mr. Chairman: Subject: Data on DOE's Uranium Enrichment Power Contracts and the Cost of Power (GAO/RCED-83-196) Your letter of February 28, 1983, asked us to respond to two sets of questions concerning the Department of Energy's (DOE's) uranium enrichment program and its potential effect on the Tennessee Valley Authority (TVAl1 and its customers. in a report to you dated April 15, 1983,1 we responded .to the first set of questions pertaining to the research, development, and capital expenditure aspects of DOE's uranium enrichment pro- gram. This letter addresses your second set of questions con- cerning the (1) amount and cost of the TVA power which DOE has contracted for but does not plan to use, (2) differences in con- tract terms of DOE's power contracts, (3) cost of TVA's power as ' compared to the power DOE receives from other suppliers, (4) im- pact of lower power costs on DOE enrichment price, and (5) action taken by DOE to minimize the cost of TVA power not taken. Your specific questions and summaries of our answers to them are on pages 5 and 6. More detailed answers to these ques- tions are contained in enclosures I through V of this report. As discussed with your office, at the time this report was being prepared, TVA had not yet provided us with the information needed to answer your question concerning the debt service 1TVA is an independent corporate agency of the Federal Government responsible for developing the Tennessee River, providing an adequate supply of electrical power to the Tennessee Valley Region at the lowest feasible cost, and other activities. TVA serves nearly 7 million residents, commercial and industrial customers, and several Federal agencies, including DOE. 2Data on DOE's Uranium Enrichment Program (GAO/RED-83-143). (301623)

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