Power Plants
TVA to Acquire Natural Gas Plant
Pending approval by its board of directors, the Tennessee Valley Authority is set to add a 938-megawatt natural gas plant to its holdings.
TVA has purchased the the 968-megawatt Magnolia Combined Cycle Gas Plant in northern Mississippi. (Photo By: Kelson Energy)
TVA said July 7 that its staff has negotiated an agreement to purchase the Magnolia Combined Cycle Gas Plant in northern Mississippi from Maryland-based Kelson Energy.
Officials said the acquisition fits with TVA’s strategy of moving toward lower-emissions facilities and will cost less than building a new plant.
“The Magnolia plant offers a strong strategic, operational and financial fit for TVA and its vision to be a leader in low-cost and cleaner energy by 2020,” said Bob Irvin, senior vice president for TVA Strategy & Planning.
The purchase price was not disclosed. The Federal Energy Regulatory Commission also must approve the deal.
The plant, located on 364 acres near Ashland, Miss., has been a source of purchased power for TVA since it opened in 2003. It has three units and is designed for intermediate generation to fill the gap between baseload and peak demand.
TVA, which provides wholesale power to 155 co-ops and municipal systems in seven states, owns two other combined-cycle gas plants. Another, in northeast Tennessee, is under construction.