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123545 1 (1984-03-01)

handle is hein.gao/gaobactgd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. FOR RELEASE ON DELIVERY EXPECTED AT 10: 00 A.M. N MARCH 1, 1984 123545 STATEMENT OF J. DEXTER PEACH DIRECTOR, RESOURCES, COMMUNITY,AND ECONOMIC DEVELOPMENT DIVISION BEFORE THE SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER HOUSE COMMITTEE ON ENERGY AND COMMERCE ON THE U. S. URANIUM ENRICHMENT SERVICES PROGRAM Mr. Chairman and members of the Subcommittee, we appreciate this opportunity to discuss the, current status of the U.S. uranium enrichment program and a number of recent DOE initiatives and proposals some of which are designed to improve the program's viability. GAO has done a number of reviews of the branium enrichment program in recent years and over the last several months, at your request, has been examining DOE's costing, pricing, marketing and contracting practices for uranjitn enrichment. We recently issued reports to you coverinig DOE's allocation of enrichment costs and the effect of the secondary enriched uranium market on the program's sales and revenues.1 Before I discuss DOE's initiatives and proposals, it is important to set in perspective the fundamental proble-nds which have developed over the last several years for the uranium enrichment program. These problems clearly demonstrato the need for a broad reevaluation of the purpose and structure Of the U.S. IThe reports referred to are DOE's Allocation of Costs for Uranium Enrichment Services (GAO/RCED-84-64, dated Nov. 15, 1983) and Lost DOE Sales to the Secondary Enriched Uranium Markit Have Resulted in Reduced Revenues (GAO/RCED-84-76, dated ;an. 26, 1984). 1

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