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Tennessee Valley Authority Reverses Course on Coal Plant Closures
The Tennessee Valley Authority (TVA), America’s largest public utility, has announced plans to continue operating two coal-fired power plants it had previously scheduled for retirement, signaling a significant shift in its energy strategy just before a board meeting dominated by Trump administration appointees.
In newly filed documents, the TVA indicated it wants to abandon closure timelines for the Kingston Fossil Plant and Cumberland Fossil Plant in Tennessee. The utility still intends to introduce natural gas facilities at both locations but would now maintain coal operations alongside them.
This represents a notable departure from TVA’s earlier commitment to phase out its aging coal plants by 2035 to reduce greenhouse gas emissions. The utility, which serves approximately 10 million people across seven southeastern states, cited growing electricity demand and changing regulatory conditions as factors driving the reversal.
“As power demand grows, TVA is looking at every option to bolster our generating fleet to continue providing affordable, reliable electricity to our 10 million customers, create jobs and help communities thrive,” explained TVA spokesperson Scott Brooks in a statement released Tuesday.
Environmental advocates have sharply criticized the decision, pointing out that it appears to contradict TVA’s own previous justifications for building natural gas plants. “Without even a public meeting, TVA is telling the people who live near these coal plants that they will breathe in toxic pollution from not one, but two major power plants for the foreseeable future,” said Gabi Lichtenstein, Tennessee Program Coordinator for Appalachian Voices.
The timing of this policy shift coincides with significant changes to TVA’s governance structure. President Donald Trump previously fired board members appointed by his predecessor, temporarily leaving the utility without a quorum needed for major policy changes. The Senate confirmed four Trump nominees in December, restoring the quorum ahead of Wednesday’s board meeting in Kentucky.
The Kingston Fossil Plant, completed in 1955, was the site of a catastrophic 2008 coal ash spill that released over one billion gallons of toxic sludge into local waterways. It had been scheduled to close by the end of 2027. The Cumberland plant, TVA’s largest coal-generating facility completed in 1973, was set for a two-stage shutdown concluding in 2028.
Under the new proposal, the Kingston site would maintain its 2,470-megawatt coal plant while adding a 1,500-megawatt natural gas facility and 100 megawatts of battery storage, though previously planned solar components would be eliminated. Similar adjustments are expected for the Cumberland site.
Industry analysts note that surging electricity demand from data centers supporting artificial intelligence technology has contributed to TVA’s reconsideration of its generation capacity. During a recent investor call, TVA President and CEO Don Moul revealed that data centers now represent 18% of the utility’s industrial load, with that figure expected to double across its service region by 2030.
The policy reversal aligns with the Trump administration’s historical support for the coal industry. During his first term, Trump issued executive orders aimed at bolstering coal production and criticized TVA’s previous moves toward cleaner energy sources. Despite presidential pressure, the TVA board still voted in 2019 to close the Paradise Fossil Plant in Kentucky, which was finally demolished earlier this year.
TVA had established goals of reducing carbon emissions 80% by 2035 compared to 2005 levels and achieving net-zero emissions by 2050. These targets, which emphasized nuclear power and next-generation reactors, were less ambitious than the Biden administration’s call for a carbon-pollution-free energy sector by 2035.
The utility has emphasized that it operates without federal taxpayer funding, instead generating revenue from electricity customers across its service region, which includes Tennessee, Kentucky, Virginia, North Carolina, Georgia, Alabama, and Mississippi.
The TVA board is scheduled to meet Wednesday, where these proposed changes may be formalized through official board action.
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6 Comments
While maintaining reliable and affordable power is critical, this decision by the TVA is disappointing from an environmental perspective. I hope they can find a way to meet demand growth through cleaner energy sources.
This is an interesting development. I’m curious to learn more about the TVA’s rationale and whether they have concrete plans to eventually phase out coal in favor of renewable or natural gas generation. Maintaining a diverse portfolio is important, but the climate impact of coal needs to be carefully weighed.
The TVA’s decision to keep those coal plants running seems to contradict its previous commitment to phasing out coal by 2035. I’m curious to learn more about the regulatory changes and power demand factors that led to this shift.
You raise a good point. The utility’s earlier climate goals and this new direction seem at odds. I agree it would be helpful to understand the specific drivers behind this reversal.
Interesting shift in TVA’s energy strategy. Maintaining coal power alongside natural gas could provide diversification, but raises concerns about emissions and climate impact. I wonder what factors are driving the increased electricity demand that’s prompting this reversal.
The TVA’s plans to keep operating these coal plants are puzzling given the industry’s long-term decline and the utility’s own prior emissions reduction targets. I wonder how this will impact the TVA’s renewable energy and decarbonization efforts going forward.