Tennessee Electricity Providers Plan New Power Plants
A group of nonprofit electricity providers in Tennessee is taking steps to develop parts of the West Tennessee Mega Site into power plants meant to generate additional electricity during peak demand.
This cooperative is focusing on around 100 acres near a new substation built by Tennessee Valley Authority (TVA) to strengthen the area and support its tenants.
The initiative aims to revitalize Tennessee’s electrical distribution network, which transitioned to an open market in 1999. Notably, the local distribution has not undergone significant changes since then. Mike Notts, CEO of the Tennessee Electric Co-op Association—which includes 23 nonprofit cooperatives serving over 2.5 million residents—mentioned they are exploring alternative uses for the company. These cooperatives source energy from TVA and deliver it locally, accounting for about 25% of TVA’s annual revenue.
Reflecting on a recent experience, Notts remarked, “This all began on Christmas Eve 2022 when we faced challenges generating sufficient energy in our area.” He noted the need for local utilities to manage power interruptions during demand spikes.
The winter storm, known as Elliott, brought frigid temperatures, leading to mechanical failures and widespread power outages across Tennessee. Since then, adjustments have been made to bolster the facilities against extreme cold.
At a recent meeting, Notts informed members of the West Tennessee Megasites Bureau that they are committed to avoiding a repeat of that situation, hence the decision to build their own peak facilities. These structures are meant to operate only during high electricity demand and would function about 10-20% of the year, primarily using natural gas-powered combustion turbines.
Lengthy Approval Process Ahead
The Tennessee Electric Cooperative, in partnership with TVA, has completed a site selection survey to figure out where they can establish energy-producing assets that align with TVA’s operations. This survey focused on properties near the TVA substation, similar to a natural gas pipeline set up for transmission needs.
Notts stated that discussions with state officials have been constructive, and they are looking to formalize their plans. He mentioned that negotiations with TVA are underway, with a two-year timeline for applying to connect to the power grid.
Ultimately, the project will require a binding letter of intent and securing a long-term lease from the megasite authorities. Additionally, it must go through reviews from both the state’s building committee and federal interconnection assessments.
Some board members from various megasite authorities expressed concerns over potential emissions from the new facility. Notts mentioned that an air quality permit will be necessary from the Tennessee Department of Environmental Protection.
While there was no official action taken at the meeting, board members showed interest in exploring the project further at the next gathering in September. Notts highlighted that TVA has acknowledged a capacity deficit, reinforcing the need for these new plants. “Our members decided to undertake this ourselves,” he noted, emphasizing their commitment as a nonprofit organization rather than outsourcing to a profit-driven entity.
