Westinghouse Seeks Fee Hike at Nuclear Sites

PITTSBURGH —  Westinghouse Electric Corp. is proposing big increases in the fees that it receives from the U.S. Department of Energy for managing nuclear weapons plants.

Westinghouse officials said they want two to three times more for managing three nuclear weapons facilities and three other DOE nuclear units. The weapons facilities are Savannah River in South Carolina, Fernald near Cincinnati and the Hanford nuclear reservation near Richland, Wash.

The Pittsburgh-based company earned $39 million in award fees this year, which are based on the company’s performance in operating the plants. It estimates that it will earn up to $50 million in fiscal 1990 under existing contracts.

William M. Jacobi, vice president in charge of Westinghouse’s governmental business operations, said the company seeks the higher fees because of “risks we’re seeing now that we didn’t see before.”