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FPL entered into a series of long-term contracts to meet its
expected fuel assemblies needs.7 In 1979, FPL entered into an
agreement of settlement with Westinghouse Electric Corp.
(Westinghouse) to supply FPL with uranium. Under the agreement,
Westinghouse agreed to supply FPL with uranium at a rate of
135,000 pounds per year beginning in 1987 and continuing for 7
years, through and including 1994, or a total of 1,080,000
pounds. The agreement gave FPL the option to terminate the
agreement upon 6 months’ prior written notice to Westinghouse
with no consequences. Additionally, FPL could cancel the
agreement if Westinghouse failed to meet specific delivery
deadlines.
Similarly, on July 25, 1978, FPL entered into a sales
agreement with International Minerals & Chemical Corp. (IMC) to
deliver a minimum of 400,000 pounds of “uranium concentrates” per
year for 13 years. IMC and FPL entered into a second sales
agreement on October 4, 1978, under which FPL purchased uranium
concentrate.
On September 9, 1974, Potomac Electric Power Co. (PEPCO) and
Kerr-McGee Nuclear Corp. executed a contract to chemically
process uranium. This agreement called for the conversion of
7 Mr. Villard testified that to change to another NRC-
approved supplier, it would take at least 3 to 4 years before
actually getting the first new full batch to be delivered. The
process of changing to a supplier not approved by the NRC took 5
to 10 years.
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