TVA’s nuclear ambitions are risky for customers. Here's why the nation's largest public utility should instead focus on proven, affordable, clean energy right now.

SACE is dedicated to promoting responsible and equitable energy choices throughout the Southeast. One way we do this is by urging utilities to invest in clean and reliable renewable energy and energy efficiency, rather than high-risk energy sources like fossil fuel power plants and new nuclear projects. 

When my colleague JT Neal and I learned TVA CEO Jeff Lyash was scheduled to talk about small modular reactors at our local utility’s board meeting in April, we knew we had an opportunity to encourage Nashville Electric Service, one of TVA’s largest customers, to put the needs of their customers first by embracing renewable energy and demand side management and rejecting TVA’s new nuclear plans and harmful gas buildout. This post expands on my comments at that meeting, in response to TVA CEO Jeff Lyash’s presentation. Video footage of Jeff Lyash’s presentation, and responses from myself and JT Neal can be found at the end of this blog.

TVA currently generates more than 40% of its power from nuclear. Before putting more eggs in the nuclear basket, TVA should bring their renewable energy generation to at least 40%, and let Tennessee Valley residents reap the benefits. 

Tennessee Valley Authority (TVA), the largest public power utility in the country, is exploring how nuclear energy can play a larger part in the utility’s future energy mix. In 2022, TVA’s Board of Directors approved the New Nuclear Program which set aside $200 million for site exploration, planning, and research into advanced nuclear technology. Since then, TVA has filed their record of decision indicating their desire to put light-water small modular reactors (SMRs) on their Clinch River Site in Oak Ridge, Roane County, Tennessee, just outside of Knoxville. Some might recall, this site once belonged to the Clinch River Breeder Reactor Project that in its time was also projected to be the newest and greatest thing in nuclear technology, but it never came to be. Many TVA nuclear projects have had a similar story: after lots of promises made and money spent, often all that is left is a hefty bill for customers to pay.

There is a well documented record of TVA’s nuclear projects running far behind schedule, far over budget, and many times being abandoned altogether. In years past, TVA planned to build 17 nuclear reactors. Seven of them were completed and brought online, but the remaining 10 units were abandoned after TVA had sunk $10 billion into them, only to get no power output in return. Watts Bar Unit 2, the utility’s most recent reactor to go into operation, was famously brought online 37 years later than expected and billions of dollars over budget. 

SMRs are now being touted as a more cost effective alternative to the traditional large-scale nuclear reactor, but reality is already telling a different story. The first SMR plant expected to be operational in the United States, a NuScale Power project, was canceled by the Utah Associated Municipal Power Systems (UAMPS) at the end of 2023 when projected power and construction costs became too high for members to move forward. After numerous delays, design changes, and subsequent cost increases, a number of the public power utilities that UAMPS serves across 7 Western states withdrew from their agreement to buy power from the project. Now, the interlocal agency is looking to add utility-scale renewable energy projects to their portfolio so they can meet the energy output once promised by NuScale’s small modular reactors. 

Despite the cost risk associated with nuclear SMR projects, CEO Jeff Lyash has said that he wants to build 20 or more SMRs, which would likely put TVA’s customers on the hook for untold billions of dollars.

Instead, TVA Should Focus on Proven, Affordable, Clean Energy Now

Given that early SMR projects have already proven to be too costly, coupled with the fact that they are still a highly speculative nuclear technology, the most obvious way to move toward a zero carbon future is to invest in proven, reliable, and affordable technology with energy efficiency, solar, wind, long duration battery storage, and innovative grid strategies. Pivoting to renewable energy is a step all utilities should be taking, especially TVA which considers itself a “leader in our nation’s drive toward a clean energy future.” Solar and wind continue to be the cheapest sources of energy despite recent inflation, and federal incentives from the 2021 Bipartisan Infrastructure Law and 2022 Inflation Reduction Act (BIL & IRA) have made each of these decarbonization options even more affordable and attainable, especially for a government entity like TVA. 

Although we can all wish for our utility companies to make choices that are best for our health and our wallets, TVA’s decision to increase their already large share of nuclear capacity instead of committing to more renewables does not come as a surprise. The federal utility lags far behind its peer utilities in the region when it comes to solar ambition. 

How are Customers Affected?

If this plan to build more nuclear power in the Valley comes to fruition, it will be at the expense of local power companies (LPCs) and their customers. TVA passes along the cost of its capital projects to ratepayers, which means the financial burden of their planned fossil gas buildout and potential new nuclear energy assets will be shouldered by us. This makes TVA CEO Jeff Lyash’s recent presentation to the board of Nashville Electric Service (NES) on TVA’s nuclear program even more concerning. 

Lyash’s presentation on April 24th focused primarily on advanced nuclear technology, however, he also shared that he sees a need for more large-scale nuclear reactors like the Westinghouse AP1000. AP1000 reactors have a dismal history in the Southeast: South Carolinians are paying billions of dollars for the AP1000 project at V.C. Summer that was partially built, then abandoned; while Georgia Power customers are already paying higher utility bills to cover construction costs of the two AP1000 reactors at Plant Vogtle that took an additional 7 years and going more than $20 billion over budget to complete. 

Ratepayers should not have to worry about rising utility bills from new nuclear projects, especially when we have other, more cost effective ways to meet growing demand. Solar, wind, energy efficiency, long duration battery storage, and innovative grid strategies can be pursued now, while also maintaining grid reliability, reducing pollution, creating jobs, and promoting public health. TVA currently generates more than 40% of its power from nuclear. Before putting more eggs in the nuclear basket, TVA should bring their renewable energy generation to at least 40%, and let Tennessee Valley residents reap the benefits. 

Please see the videos included below to view Jeff Lyash’s presentation and responses from myself and SACE Decarbonization Consultant JT Neal.

Jeff Lyash Presentation to NES Board, April 24, 2024:

My comments to the NES board following Jeff Lyash’s presentation:

JT Neal’s comments to the NES board following Jeff Lyash’s presentation: