MEMPHIS, Tenn. - The Tennessee Valley Authority board of directors on Thursday approved replacing the Allen Fossil Plant in Memphis with a cleaner, natural gas plant that will help ensure continued low-cost and reliable electricity for the greater Memphis area and TVA’s western service territory.
Following an environmental review that received comments from more than 1,500 people, the board agreed to retire the 55-year-old coal plant and replace it with a high-efficiency, 2-on-1, combined-cycle gas plant. The board authorized up to $975 million to build a gas plant with a capacity of approximately 1,000 megawatts, enough to supply about 580,000 homes.
The Allen gas plant will be the seventh combined-cycle gas plant TVA has added to its power portfolio since 2007.
TVA is working under a deadline to either retire or install emission controls at the Allen coal plant by December 2018 under a 2011 clean-air agreement with the U.S. Environmental Protection Agency, three states and four environmental groups.