Mr. LONGENECKER. All of those cost reductions, of course, have allowed us to make some rather dramatic price reductions. You recall that in 1984 under our requirements contracts at that time we were selling for a price of $149 per SWU. By reducing our costs in all areas, in 1987 we have lowered that price to $119 per SWU. In addition, customers under the Utility Services contracts who are buying 100 percent from us and have availed themselves of the incentive price offers are receiving an average price somewhat less than this of $110 per SWU.

AVLIS

Now, the future assurance for customers when they sign longterm contracts with us that the price can be competitive is provided by the AVLIS technology. I would like to provide a very brief update of the progress that was made in 1986 and describe for you the progress that we hope to make in this fiscal year.

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