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RED-76-96 1 (1976-03-26)

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     In t- Spfns0 to you  Fer Uary 5, 1976, recuFst, we ha-ve
--e  teo roe r2C'2:sec   Ci :ed c:-,ct whi. r   Enerzy
  S:eza r ch a nd  cve Icocnt P n srr t i on is sceki3 to enter
intC   t h Pro E zz nanacenr.t Co0 r ation, CC ron ,ear-n
37 o, and th Tc r rnessFe - .. VEl lc: Authority.  The
oiieO con t rt would ch qe the zresent Zrrnanemet fcr
cesicrina, cmrzt';ctinc, an. opcratinq the Clinch River
rcedEr Reat cts - .n. ataon plt -  y civing tbe en'rqy
    '.c:, rathe oL -n the corToration, overall 5nr.cement
reCst'- SailL\   The ccpr raon wa creator  rn C 'Yarc h I72
t ke a7 e te      I h,<n ver crecer  e acto-  :oct an5 to
.......... . t_ .' raett  for t b -   asan, con.strzc z cn, ah.


     The       r.lt -ri, and respo-sibilitiesof U-.. e,eray
acenrv ana the ccrporat ,)n are neing chanqed necause the
...ount of the G cvernmcnts financial cosmitrent to this
-ro ect has .r..at.lv increaSeA--f-rc- an est iate $425 ril-
lion, or a-ou. 61 perccnt of the then estimated total ra-
nect cost of $59 iillrsn to S1.7 bliion, or about cK
rercent cf the current estimated total Froject cost of
51.95 biIlion. The- financial ccn tr iution cf the partici-
catina ctiities is fixed at abou t $257 milio_,n.  In
occitin, the Tennessee Valley Authority is donatin land
tor toe reactor site.

     Our revi_-w focuse6 on determining whether the rro-
--0e=6 moditied contract recresents a sound arranoemeoc for
successfUlly consletino the Clinch River Breeder Peactor
denorxstration zreject. We .c a .c, sionS with- energy
.4sency rezresentatives kncwledgcable of, and resrcnsible
or , preariro and necotiating the proposed codified con-
.~ct-ann re2- _weo und-.rlyina docurentation.

     In an April 4, 1975, re-port to the Joint Comnittee
cn Ato-mic Ener:zv, we were c ncerned that the documents

                                                  DNED- 6-96





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