Energy Business
Tue, Oct 20
Molly Glick
Molly Glick
Energy Central Team
·Posted in Energy Business

NEWS: A court has upended a ruling that halted construction of TVA’s $2.5B gas plant in Tennessee.

  • The context: In August, a federal court ruled that TVA violated the National Environmental Policy Act by beginning work on a 1.5-GW gas plant in Tennessee. Why? The utility signed an agreement with East Tennessee Natural Gas before fully considering lower-cost and cleaner generation alternatives.

  • The latest: An appeals court has overhauled that decision, claiming that the ruling misinterpreted NEPA and TVA’s agreement with the gas company. Plus, abandoning the plant at this point “would impose high costs on TVA and the public,” according to the court. 

  • Where things stand: TVA can keep on building. The plant is about half finished, but the utility won't pull off the original launch date of 2028 (due to supply chain snags).

1