Exelon signs contract to purchase product from USEC's American Centrifuge Plant

Contract worth $1.2 billion
Published: Thursday, September 10, 2009 4:24 PM EDT
BETHESDA, Md.  USEC Inc. (NYSE: USU) today announced that Exelon Generation Company LLC has signed a contract to purchase SWU (separative work units) from USEC's American Centrifuge Plant to fuel its reactors.? Exelon operates the largest fleet of commercial nuclear reactors in the United States and the third largest in the world. ? The contract starts in 2012 and is valued at nearly $1.2 billion.

USEC has customer commitments valued at over $3.4 billion for the American Centrifuge Plant's output.

"Our customers believe in the American Centrifuge technology and support our efforts to complete the plant," said John K. Welch, USEC's president and chief executive officer.? "We appreciate Exelon's support and look forward to continuing to provide them with the same quality, reliable service they have come to expect from USEC."

 "The American Centrifuge Plant is important to Exelon as a source for increasing fuel supply diversity, but it is also important for the country as an important component of energy and national security," said Chris Crane, president and chief operating officer of Exelon Corporation. ? "We strongly support the deployment of the American Centrifuge technology and look forward to continuing our long relationship with USEC."

 USEC has been building the American Centrifuge Plant to provide the dependable, long-term nuclear fuel production capability needed to support the world's nuclear power plants. ? The American Centrifuge technology is based on U.S. gas centrifuge technology originally developed by the U.S. Department of Energy (DOE) but with significant design, material and manufacturing improvements incorporated by USEC. ? As America's only commercial uranium enrichment facility using U.S. centrifuge technology, the American Centrifuge Plant has an important role in America's energy security and national security.

USEC has applied for a loan guarantee from DOE and in August 2009 DOE and USEC agreed to delay final review of USEC's application for six months or more. As a result of delays and uncertainty in funding, USEC began demobilization of certain project activities in August 2009 while it works o resolve DOE's technical and financial concerns.
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