Morning Report for May 20, 1999

                       Headquarters Daily Report

                         MAY 20, 1999

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           X
REGION I                               X
REGION II                                                 X
REGION III          X
REGION IV                              X
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION III  MAY 20, 1999

Licensee/Facility:                     Notification:

United States Enrichment Corporation   MR Number: 3-99-0045
Portsmouth Gaseous Diffusion Plant     Date: 05/19/99
Portsmouth,Ohio                        USEC FAX
Dockets: 07007001

Subject: UNITED STATES ENRICHMENT CORPORATION ASSUMES DIRECT OPERATION
         OF THE GASEOUS DIFFUSION PLANTS


Discussion:

On May 18, the United States Enrichment Corporation (USEC) assumed direct
operation of the gaseous diffusion plants from the current operating
contractor Lockheed Martin Utility Services. The approximately 4000
individuals working at the two plants have transitioned from Lockheed
Martin Utility Services employees to USEC employees as part of the
transition effort.

The gaseous diffusion plants enrich uranium used in nuclear power plants.
The NRC assumed regulatory authority from the Department of Energy for
the activities conducted by the USEC on March 3, 1997.

Regional Action:

None

Contact:  Timothy D. Reidinger       (630)829-9816
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