TVA decides not to build gas-fired plant

TVA decides not to build gas-fired plant
By The Associated Press

CHATTANOOGA - While discussing plans to restart an old nuclear reactor in Alabama, the Tennessee Valley Authority board decided to abandon building a natural gas-powered plant in Tullahoma.

Tullahoma officials and utility watchdogs questioned the decision after TVA invested almost $150 million in the project.

The "combined cycle" plant at Arnold Air Force Base would have been a first for TVA. The $360 million plant was designed to generate electricity in two ways: through two combustion turbines fueled by natural gas and then by a steam-powered turbine driven by the combustion turbines' exhaust.

The plant was no longer needed because of slowing demand for power and cheaper alternatives,

TVA officials said.
"We decided not to proceed after a careful evaluation of several factors, including the ample power already available within the TVA service territory and the slower growth in our load demand," TVA spokesman John Moulton said.

Stephen Smith, director of the Southern Alliance for Clean Energy, called it "a very bad decision made in the dark of the night behind closed doors."

The decision coincides with the board discussing the projected $1.7 billion cost to reactivate TVA's oldest nuclear power generator, the Unit 1 reactor at the Browns Ferry Nuclear Plant near Athens, Ala.

The Browns Ferry reactor could add more than 1,200 megawatts of generating capacity,
enough to power two cities the size of Chattanooga, by 2005. The Tullahoma plant would have added 510 megawatts of power by 2004.

Moulton said TVA officials have not decided if the Browns Ferry reactor will be restarted.

"It looks like the decks are being cleared for TVA to once again proceed down its failed nuclear path," Smith said. "It's simply irrational for TVA to give up on a natural-gas plant they could finish for a couple hundred million dollars in the next 18 months in favor of a very risky nuclear plant that may or may not eventually generate only 2½ times more power but cost at least six or seven times more money."

TVA officials previously said Browns Ferry could be operated more cheaply than a natural-gas plant because it would use fewer workers and less expensive fuel.

Franklin County Executive Monty Adams said TVA officials "missed a great opportunity." The project would have created about 400 construction jobs and 40 permanent positions. "We're disappointed because we felt like this was a perfect opportunity to put a power-generation facility where people want it and where it is in conformity with other facilities in the area."

U.S. Rep. Van Hilleary, R-Spring City, said he was "concerned about the potential waste of dollars already invested in the plant." Hilleary planned to meet with TVA Chairman Glenn McCullough.

TVA contracted with General Electric Corp. in May 2000 to build the gas-fired plant, designed to generate more electricity for the amount of gas it burns than conventional combustion turbine.