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![handle is hein.gao/gaobadysz0001 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.
JUNE 5, 1981
STATEMENT OF
J. DEXTER PEACH
DIRECTOR, ENERGY AND MINERALS DIVISION
BEFORE THE 115402
SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER
HOUSE COMMITTEE ON ENERGY AND COMMERCE
ON SN
LFAIR VALUE PRICING OF URANIUM ENRICHMENT SERVICES]
MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE, WE ARE PLEASED
TO BE HERE TODAY TO DISCUSS CHANGING THE BASIS FOR THE GOVERNMENT'S
PRICING OF URANIUM ENRICHMENT SERVICES FROM COST RECOVERY TO WHAT
IS COMMONLY CALLED FAIR VALUE PRICING.
THE DEPARTMENT OF ENERGY (DOE) IS THE SOLE SUPPLIER IN THIS
COUNTRY OF URANIUM ENRICHMENT SERVICES. SINCE 1970, THE LEGAL
BASIS USED BY DOE AND ITS PREDECESSOR AGENCIES IN SETTING ENRICH-
MENT SERVICE PRICES HAS BEEN RECOVERY OF THE GOVERNMENT'S COSTS
OVER A REASONABLE PERIOD OF TIME. UNDER THE FAIR VALUE PRICING
CONCEPT, DOE'S ENRICHMENT SERVICES PRICES WOULD BE ESSENTIALLY
BASED ON WHAT A PRIVATE ENRICHER WOULD CHARGE IF IT OWNED AND
OPERATED A URANIUM ENRICHMENT FACILITY. IN ADDITION TO RECOVERY
OF CAPITAL AND OPERATING COSTS, AS IS CURRENTLY DONE, FAIR VALUE
PRICING WOULD ALLOW DQE TO INCLUDE PRICE FACTORS FOR NORMAL
BUSINESS CHARGES SUCH AS RETURN ON EQUITY, TAXES, AND INSURANCE.
THE NET EFFECT OF THIS NEW PRICING BASIS, THEREFORE, IS TO PUT
THE GOVERNMENT'S URANIUM ENRICHMENT ACTIVITY ON A BUSINESS-LIKE
BASIS.](ViewImageLocal?handle=hein.gao/gaobadysz0001&div=1&collection=&method=preview&ext=.png&size=3)