PDT Staff Writer
USEC announced on Thursday they are working with their creditors to secure continued funding for short-term operations.
USEC is working with the U.S. Department of Energy (DOE) and members of Congress to secure funding for an RD&D (Research Development and Demonstration) program at the Piketon facility.
The RD&D program would be a cost-sharing measure between the federal government and USEC. The government’s contribution would be $300 million.
DOE is seeking Congressional approval for the funding.
Paul Jacobson, USEC spokesman, said the company renegotiated its corporate credit facility in March.
Jacobson said a credit facility is a line of credit, similar to a charge account, that’s normally used as short-term borrowing to smooth out cash flow.
“If there is no funding in place from the government for the research program by the end of May, the credit facility essentially requires us to significantly curtail our spending on the project,” Jacobson said when they received the credit.
He said USEC is working with its creditors to extend its credit to fund the RD&D until a deal can be worked out with DOE.
“We’ve been engaged with the Department of Energy on looking at some administrative options to fund the program for the rest of 2012. Those discussions are making good progress. Although the discussions are not complete yet, we are making good progress,” Jacobson said.
He said if the company’s credit is extended it would allow work to continue at its current pace.
“This does not change anything. All of the workers will be able to report to work in the morning. The work will continue without disruption, both in Ohio and in Tennessee,” Jacobson said. “The hope, expectation and challenge is that we will be able to reach an agreement with our creditors and DOE on a structure that allows us to continue with federal support to fund the RD&D program between now and Oct. 1. The hope would be that by Oct. 1 we would have Congressional approval of funding for 2013.”
Officials with USEC are still awaiting a decision from DOE about its pending $2 billion loan guarantee application. If awarded, the funds would be used in the construction and operation of the American Centrifuge Plant (ACP) in Piketon.
Wayne Allen may be reached at 740-353-3101, ext. 208, or email@example.com.