VA investsfor decommissioning
The Tennessee Valley Authority (TVA) has placed $400 million into investment trust funds with three of Tennessee`s largest banks as part of its strategy to ensure funding for decommissioning its nuclear plants. “It is important to our ratepayers and to TVA`s competitiveness that we ensure there will be adequate funds to decommission these nuclear plants at the end of their operating lives,” said Craven Crowell, TVA chairman.
The investment is expected to produce a rate of return near 10 percent, significantly higher than the 6 percent TVA had been earning in conservative, short-term investments. The earnings are expected to allow TVA to forgo annual contributions to the fund in the foreseeable future as earnings are expected to cover decommissioning costs of around $2 billion for Browns Ferry Nuclear Plant in 2017, about $1.4 billion for Sequoyah Nuclear Plant in 2022 and about $1.4 billion for Watts Bar Nuclear Plant in 2037.