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09/04/03
USEC CEO: World Events Support Nuclear Power's Revival; More Plants Would Underscore Nuclear's Key Benefits: Reliability, Nonproliferation, Clean Air

BETHESDA, Md., Sep 4, 2003 (BUSINESS WIRE) -- Recent world events have the nuclear power industry poised for an era of growth, USEC Inc. (NYSE:USU) President and CEO William H. Timbers told a nuclear industry conference in London today. Speaking before the World Nuclear Association's Annual Symposium, Timbers pointed to several factors that should support nuclear power's revival, including the recent heat wave in Europe, blackouts in the United States and Canada and a growing recognition of nuclear power's environmental and global security benefits.

In the wake of Europe's heat wave, hundreds of thousands of homes and businesses are expected to add air conditioning and cooling equipment, leading to a substantial increase in electricity demand, Timbers said. And in North America, the largest blackout in U.S. history has prompted numerous investigations into the reliability of the nation's electricity generation and delivery system.

Timbers said investigators will likely reach three conclusions. "First, we must take measures to ensure that the supply of electricity is sufficient and dependable. Second, we must substantially increase the number of baseload electric power plants to meet growing demand, and third, we must ensure that the transmission and distribution infrastructure can and will deliver sufficient electricity where and when it is needed."

The construction of a new generation of nuclear power plants could help to substantially increase the stability of the electricity delivery system, Timbers noted. At the same time, new nuclear plants could play an important role in an often overlooked benefit of nuclear power--reducing the proliferation of nuclear weapons.

Through the Megatons to Megawatts program, Russian weapons-grade uranium from dismantled nuclear warheads is already being recycled into fuel for use in nuclear power plants. "The benefit is clear," Timbers said. "We can eliminate more and more nuclear warhead material by substantially increasing the number of commercial nuclear power facilities."

As the U.S. government's executive agent for Megatons to Megawatts, USEC purchases the warhead-derived fuel from Russia and markets it to utility customers. To date, material for 7,500 warheads has been converted into enough nuclear fuel to power a large American city for 290 years.

Growing concerns about greenhouse gas emissions from fossil fuel plants should also help advance nuclear power's growth, Timbers said. Unlike coal, natural gas and oil generating facilities, nuclear power plants do not release the harmful air pollutants that contribute to global warming and health problems worldwide. "Nuclear energy has proven itself to be the cleanest fuel used to produce electricity," he said.

The convergence of recent world events "will lead to announcements of new nuclear power facilities coming sooner, rather than later--particularly in the United States," Timbers said.

"As new nuclear facility construction gathers momentum, the combined effects will open new markets and help attract a new generation of talent into the nuclear industry," he added.

The complete text of Timbers' speech before the World Nuclear Association can be found in the News Room section of USEC's website, www.usec.com.

USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.

SOURCE: USEC Inc.

USEC Inc.
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