BETHESDA, Md.--(BUSINESS WIRE)--Oct. 31, 2006--USEC Inc. (NYSE:USU) has signed a long-term contract valued at more than $200 million with PPL Susquehanna, LLC, to supply uranium enrichment for the company's Susquehanna nuclear power plant in Luzerne County, Pa. Enrichment is the process by which the concentration of the fissionable uranium isotope is increased in order to make fuel for nuclear power plants.
"This new contract builds on USEC's long-standing relationship with PPL and reflects our commitment to provide customers with a reliable, competitive source of enriched uranium fuel for years to come," said John M.A. Donelson, USEC vice president of marketing and sales. "This innovative market-based agreement is also a great example of utility support for both the Megatons to Megawatts program and USEC's transition to the next-generation American Centrifuge uranium enrichment plant to be built in Piketon, Ohio."
The Megatons to Megawatts program is the result of the historic 1993 nonproliferation agreement between the United States and Russia to convert highly enriched uranium taken from dismantled Russian nuclear warheads into low-enriched uranium fuel. As U.S. Executive Agent for this program, USEC purchases this fuel for its customers' nuclear power plants.
USEC is in the process of demonstrating and deploying the American Centrifuge, which will replace its existing gaseous diffusion technology and is expected to be the world's most efficient uranium enrichment technology. The American Centrifuge Plant will use modular architecture that allows capacity to be added incrementally, thus allowing USEC to meet the growing demand for nuclear fuel.
"PPL is pleased to continue its long-standing relationship with USEC as a key supplier for our Susquehanna plant," said Britt T. McKinney, senior vice president and chief nuclear officer for PPL Susquehanna. "USEC continues to provide a reliable source of uranium enrichment through its U.S.-based production and the Megatons to Megawatts program."
This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. Economic, business, market, regulatory, technology and other factors could cause USEC's actual future results to differ materially from those expressed in our forward-looking statements. More information about these factors is contained in USEC's filings with the Securities and Exchange Commission, including USEC's annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on USEC's website www.usec.com. USEC does not undertake to update its forward-looking statements except as required by law.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
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SOURCE: USEC Inc.