USEC Inc. (NYSE:USU) and the U.S. Department of Energy (DOE) have agreed
to extend the research, development and demonstration (RD&D) program for
the American Centrifuge uranium enrichment technology through April 30
at no additional cost to the U.S. government as discussions continue
between USEC and the DOE’s Oak Ridge National Laboratory (ORNL).
Federal funding for the highly successful centrifuge RD&D program was
scheduled to expire April 15. Prudent management of existing program
funds by USEC will allow the program to continue through the end of
April. The RD&D program achieved all of its technical milestones on time
and within budget and confirmed the American Centrifuge technology’s
readiness for deployment and its capability to meet national security
objectives.
The FY 2014 Omnibus Appropriations Act passed by Congress and signed by
the President in January 2014 provided funding to continue the domestic
uranium enrichment RD&D program. Approximately $9.6 million of such FY
2014 appropriations remain available to fund continuation of RD&D
activities beyond April 30. In addition, the FY 2014 Omnibus provided
approximately $57 million in FY 2014 funding transfer authority that can
be made available for further RD&D subject to submission by DOE of a
cost-benefit analysis report to the House and Senate Appropriations
Committees and approval of such funds transfer by those Committees.
USEC continues to hold constructive discussions with ORNL, which will
manage the RD&D program going forward. These discussions include the
scope of the continued RD&D program to support national security
requirements in light of budget constraints and the objectives
articulated by Secretary of Energy Moniz in recent Congressional
testimony, as well as discussions on USEC’s role as a contractor to ORNL
in carrying out the program.
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
Forward-Looking Statements:
This news release contains “forward-looking statements” within the
meaning of Section 21E of the Securities Exchange Act of 1934 - that is,
statements related to future events. In this context, forward-looking
statements may address our expected future business and financial
performance, and often contain words such as “expects”, “anticipates”,
“intends”, “plans”, “believes”, “will” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, but are not limited to the impact of and risks related to USEC
Inc.’s “pre-arranged” case under Chapter 11 of the bankruptcy code
including risks related to obtaining approval and confirmation of USEC
Inc.’s plan of reorganization, the impact of any delay or inability in
obtaining such confirmation, the impact of a potential de-listing of our
common stock on the NYSE, the impact of our restructuring on the holders
of our common stock, preferred stock and convertible notes; risks
related to the ongoing transition of our business, including the impact
of our ceasing enrichment at the Paducah gaseous diffusion plant and
uncertainty regarding our ability to deploy the American Centrifuge
project; uncertainty regarding funding for or reduction in the scope of
the American Centrifuge project after April 30, 2014, the date for
completion of the current period of funding for the research,
development and demonstration program (such program, including any
extension or successor program, the RD&D Program) and the potential for
a demobilization or termination of the American Centrifuge project if
additional government funding is not in place or is reduced at the end
of the current funding for the RD&D Program; risks related to the
underfunding of our defined benefit pension plans and potential actions
the Pension Benefit Guarantee Corporation could pursue in connection
with ceasing enrichment at the gaseous diffusion plants or with any
demobilization or termination of the American Centrifuge project; the
impact of uncertainty regarding our ability to continue as a going
concern on our liquidity and prospects; the impact of enrichment market
conditions, increased project costs and other factors on the economic
viability of the American Centrifuge project without additional
government support and on our ability to finance the project and the
potential for a demobilization or termination of the project;
uncertainty concerning the ultimate success of our efforts to obtain a
loan guarantee from DOE and/or other financing for the American
Centrifuge project or additional government support for the project and
the timing and terms thereof; the dependency of government funding or
other government support for the American Centrifuge project on
Congressional appropriations or on actions by DOE or Congress;
limitations on our ability to provide any required cost sharing under
the RD&D Program; uncertainty concerning our ability through the RD&D
Program to demonstrate the technical and financial readiness of the
centrifuge technology for commercialization; potential changes in our
anticipated ownership of or role in the American Centrifuge project,
including as a result of potential management of the RD&D Program going
forward by Oak Ridge National Laboratory and as a result of the need to
raise additional capital to finance the project in the future; the
impact of actions we have taken or may take to reduce spending on the
American Centrifuge project, including the potential loss of key
suppliers and employees, and impacts to cost and schedule; the potential
for DOE to seek to terminate or exercise its remedies under the RD&D
cooperative agreement or 2002 DOE-USEC agreement; changes in U.S.
government priorities and the availability of government funding or
support, including loan guarantees; and other risks and uncertainties
discussed in our filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended December 31,
2013, which is available at www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.
Copyright Business Wire 2014