exv10w1






Exhibit 10.1




AMENDATORY AGREEMENT

Between

UNITED STATES ENRICHMENT CORPORATION

And

TENNESSEE VALLEY AUTHORITY




			
	 	 	 
	     Date: October 1, 2009
	 	TV-05356W, Supp. No. 6     






          THIS AGREEMENT, made and entered into by and between TENNESSEE VALLEY AUTHORITY (TVA), a
corporation created and existing under and by virtue of the Tennessee Valley Authority Act of 1933,
as amended (TVA Act), and UNITED STATES ENRICHMENT CORPORATION (Company), a corporation created and
existing under the laws of the State of Delaware;




WITNESSETH:




          WHEREAS, Company has been purchasing power from TVA under Power Contract TV-05356W, dated July
11, 2000, as amended (2000 Contract), for the operation of Company’s uranium enrichment facilities
near Paducah, Kentucky; and




          WHEREAS, the parties wish to amend the 2000 Contract by replacing the Fuel Cost Adjustment
(FCA) formula attachment to that contract with a new FCA formula attachment providing for true-up
adjustments under that formula (TUm) to be made one month after a forecast FCA month instead of two
months after a forecast FCA month;




          NOW, THEREFORE, for and in consideration of the premises and of the mutual agreements
hereinafter set forth, and subject to the provisions of the TVA Act, the parties mutually agree as
follows:




          1. Effective beginning with the monthly trueup (TUm) to be applied under the FCA formula to
the Baseline Energy Prices to be billed to USEC for the October 2009 Billing Month, the FCA formula
attachment provided for by Supplements Nos. 3 and 4 to the 2000 Contract shall be replaced with the
FCA formula attached to and made a part of this agreement and the 2000 Contract. Further, it is
also expressly recognized and agreed that to provide for the transition from a two-month TUm lag to
a one month TUm lag, the October 2009 Billing Month will receive two TUm adjustments, one to
reconcile the August 2009 forecast data to actual data for that month and a second to reconcile the
September 2009 forecast data to actual data for that month.




 









 








          2. As further amended by this agreement, the 2000 Contract is ratified and confirmed as the
continuing obligation of the parties.




          IN WITNESS WHEREOF, the parties to this agreement have caused it to be executed by their duly
authorized representatives, as of the day and year first above written.




	 	 	 	 	 
	 	UNITED STATES ENRICHMENT CORPORATION

 	 
	 	By  	/s/ Robert Van Namen
 	 
	 	 	Title: 	Senior Vice President, Uranium Enrichment 	 
	 	 	 	 
	 
	 	TENNESSEE VALLEY AUTHORITY

 	 
	 	By  	/s/ John G. Trawick
 	 
	 	 	Vice President 	 
	 	 	Strategy, Pricing and Contracts 	 



2









 






	 	 	 	 	 



FUEL COST ADJUSTMENT



In accordance with the formula below, the Fuel Cost Adjustment amount (FCA) shall be determined for
each month by applying data from TVA’s forecasts of TVA’s actual operations, as well as actual data
when it becomes available. The FCA consists of two parts. The first part is the monthly
adjustment (Am) (as defined below), which is an adder to be applied to each Megawatthour (MWh).
TVA will publish the amount of Am no later than 15 days in advance of the month of application, and
the formula will be applied as part of the monthly USEC bill. In addition to Am, there is a
monthly true-up to bring TVA’s forecasts to actual amounts (TUm) (as defined below) that will add
or credit a lump sum amount on the monthly bill once actual data is collected.




	 	 	 	 	 
	Am=

	 	CFm

	 	 	 
	 	95%	 







	m = 	 	a particular month.
	 
	Am =   	 	The FCA adjustment to be applied to the MWh sales during the current billing period and computed to the nearest cent per
MWh.
	 
	CF = 	 	The core FCA adjustment amount. CF =
FFm / SFm - Bm






	 	FF = 	 	TVA’s estimate of FA (as described below) for month m, based on the
latest TVA Financial Forecast.
	 
	 	SF = 	 	TVA’s estimate of SA (as described below) for month m, based on the
latest TVA Financial Forecast.
	 
	 	B = 	 	The monthly per MWh Base Fuel Rates (as shown in the table below).





	 	 	 	 	 
	June
	 	$	17.13	 
	July
	 	$	22.22	 
	August
	 	$	18.92	 
	September
	 	$	17.09	 
	October
	 	$	16.22	 
	November
	 	$	17.09	 
	December
	 	$	16.53	 
	January
	 	$	16.96	 
	February
	 	$	18.26	 
	March
	 	$	18.80	 
	April
	 	$	16.09	 
	May
	 	$	14.57	 








	TUm = 	 	The true-up adjustment amount necessary to reconcile prior estimates to actual data, which shall be computed with the
formula below. The true-up will be a dollar payment or credit on the bill one month after a forecast FCA month.





(FAm-1/
SAm-1– FFm-1/SFm-1)*USECSm-1/.95




 









 









	 	FA =           	 	Actual total fuel and purchased power expenses (in dollars) under the
framework and accounts provided below (or such similar or successor accounts as may
be proscribed by FERC in the future).






	 	(1)	 	Fossil Fuel Expense — Account 501 — Direct cost
of fuel burned in TVA coal plants, including transportation and fuel
treatments. Costs to be excluded are lease payments for rail cars,
maintenance on rail cars, sampling and fuel analysis, and fuel handling
expenses in unloading fuel from shipping media and the handling of fuel
up to the point where fuel enters the bunker or other boiler-house
structure.
	 
	 	(2)	 	Reagents Expense — Account 501.L — Cost of
emission reagents such as limestone and ammonia that are directly
related to the level of generation output.
	 
	 	(3)	 	Emission Allowance Expense — Account 509 — Cost
of emission allowance expense such as SO2 and NOx that are directly
related to the level of generation output.
	 
	 	(4)	 	Nuclear Fuel Expense — Account 518 — Cost of
nuclear fuel amortization expense dependent upon burn, including DOE
spent fuel disposal charges.
	 
	 	(5)	 	Gas Turbine Fuel Expense — Account 547 — Direct
cost of gas and oil delivered to TVA plants, including transportation.
Costs to be excluded are costs of gas storage facilities and sampling
and fuel analysis that do not vary with changes in generation volume.
	 
	 	(6)	 	Purchased Power Expense — Account 555 — Energy
cost of purchased power to serve native load demand or to displace
higher cost generation. Costs to be excluded are fixed demand or
capacity payments in tolling agreements and purchased power agreements
that do not vary with volume and costs of purchased power linked to
off-system sales transactions.






	 	SA = 	 	Actual total TVA energy sales (in MWh) for month m, as determined from
TVA’s General Ledger with specific accounts 442, 445, 447, 447.1, and 448 (or such
similar or successor accounts as may be proscribed by FERC in the future), excluding
any displacement sales reflected in account 447.1.
	 
	 	USECSm = 	 	USEC actual sales in a particular month, excluding Additional Energy sales (as
defined in Power Contract number TV-05356W between USEC and TVA dated July 4, 2000)
unless otherwise agreed between the parties.






2