The Tennessee Valley Authority will spend up to $750 million over the next decade and a half on new uranium supply agreements to help the utility diversify its supply of nuclear fuel for its reactors in Tennessee and Alabama.
At the agency's first board meeting ever in North Carolina, TVA directors today approved a contract with American Centrifuge Enrichment LLC to enrich uranium from 2016 to 2025. The $500 million contract with American Centrifuge will help supply about 14 percent of TVA's nuclear fuel by enriching uranium to add more uranium-235 isotopes to boost the energy output of the mined fuel.
TVA board members also approved a contract for up to $250 million for Cameo Inc. to supply uranium hexafluoride for about 7 percent of TVA's uranium needs from 2017 to 2021.
"With these contracts, we would have a diverse set of suppliers during this period," TVA Chief Operating Officer Bill McCollum said.