AREVA NP, Inc. - Review of Annual Rate Adjustments

At the request of Tennessee Valley Authority's (TVA) Supply Chain, we audited AREVA NP, Inc.'s, calendar year 2012 and 2013 rate adjustments required under Contract No. 004027. The contract provided for AREVA to complete engineering, licensing, construction, and start-up operations of a single Bellefonte Nuclear Plant unit by the end of 2017. The objective of our audit was to determine if AREVA's rate adjustments were in accordance with the contract terms. In summary, we determined AREVA's 2012 and 2013 rate adjustments totaling $5,107,878 were overstated by $1,817,940. AREVA previously issued TVA credits totaling $607,637. Accordingly, TVA is due the remaining $1,210,303. In addition, we found AREVA billed $5,618,666 in labor costs and associated fee in 2012 and 2013 using cost center rates not included in the contract. Summary Only