The House amendment to the Energy Research and Development Administration (ERDA) authorization bill would substantially affect ERDA basis for setting its price for uranium enrichment services.

The House bill would not allow a government enrichment price which covers such factors as business risk and return on equity. Failure to include such a component would perpetuate a barrier to private industry's eventual entry in the commercial uranium enrichment market and continue a pricing structure that results in a subsidy to enrichment customers. The Senate bill should more clearly identify the cost factors that ERDA should include in its price. The Department of Energy should seek and encourage private companies to continue their efforts to pursue commercialization of advanced uranium enrichment technologies. Removing the enrichment pricing barrier is one of the ways the government could encourage commercial participation. The House bill would continue a pricing structure which would result in a subsidy that would tend to discourage private enterprise.

Status Legend:

Review Pending-GAO has not yet assessed implementation status.

Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.

Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.

Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.

• Review Pending
• Open
• Closed - implemented
• Closed - not implemented

Matter for Congressional Consideration

Matter: Congress should reject the provision in the House bill requiring the Comptroller General to certify that the price charge for uranium enrichment services does not recover a profit for the government.

Status: Closed

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