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TVA gives up on peaking plant in Tennessee


By Sylvie Dale, Online Editor

March 7, 2002 — The Tennessee Valley Authority (TVA) has decided to wait on plans for a new peaking power generating facility.

The public power producer said it had no plans to award the construction contract to any company, Reuters News Service reported. However, the agency still is looking at proposals for a 600-MW baseload facility for everyday demand.

Dominion Resources Inc. announced Wednesday that it was not awarded a $300 million contract to build a 600-MW natural gas peaking power facility in Montgomery County, saying its bid was not selected.

In fact, none of the bids were selected because of what many in the industry are calling a common strategy to delay power plant construction. The incentive for building and operating power plants is lower now because of lower power prices.

Also, TVA said according to new data it will be able to meet demand through open-market purchases and agency-specific construction, Reuters reported.

TVA supplies energy to nearly eight million residents in Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee, and Virginia.