Political talk threatens Ohio energy project
Firm seeks loan to build centrifuges that provide power
2:06 AM, Apr. 29, 2012
Written by
Gregory Korte

PIKETON, OHIO

...The stakes are high: It’s an election year, and Ohio is a swing state. USEC estimates the project at its peak will generate 3,158 jobs in Ohio, and 4,284 elsewhere. Pike County, home to the centrifuges, has a 13 percent unemployment rate — the highest in Ohio. The median household income is about $40,000, while the average job at USEC pays $77,316.

The project has enjoyed bipartisan support. A USA TODAY review of DOE records shows at least 46 members of Congress — 32 Republicans and 14 Democrats — have pressured the Obama administration to approve the loan guarantee for USEC. “Quick action is paramount,” said one bipartisan letter. “It is imperative that this application move forward now,” said another.

The congressional support comes from states such as Ohio, Pennsylvania, Tennessee, Kentucky, West Virginia, Missouri, Alabama, Indiana, Maryland, North Carolina and South Carolina — an almost exact overlay of states that would benefit from the 7,442 jobs the company says would be created.

USEC executives have also funneled another $461,000 through its political action committee to members of Congress from both parties. Since 2005, when Congress first authorized the Department of Energy’s loan guarantee program, USEC has invested $15.6 million on lobbying, congressional records show.

...

USEC, which is spending $15 million a month just to keep the test project running, lost $540 million last year. Its stock price closed Thursday at 83 cents a share, near an all-time low and down from a high of $23.91 five years ago. That means a company worth less than $120 million is seeking $2 billion in financing.