TVA to Delay Retirement of Two Large Coal-Fired Power Plants

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Written by John Egan for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Tennessee Valley Authority (TVA) is taking steps to postpone the planned retirement dates of about 3,900 megawatts of generation from two coal-fired power plants. Many electric utilities across the U.S. have delayed the retirement of generators that burn coal.

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TVA Plans to Keep Two Coal Plants Open

The Board of Directors for the Tennessee Valley Authority (TVA) voted February 11 to take the steps necessary to postpone the planned retirement dates of the Cumberland Fossil Plant and Kingston Fossil Plant, two large coal-fired power plants with a combined generation capacity of about 3,868 megawatts (MW).

The two-unit Cumberland station, located in Stewart County, Tennessee, has approximately 2,470 MW of generating capacity. That plant began generating electricity in 1968. Prior to the board's action, one Cumberland unit was scheduled to retire at the end of 2026 while the other had a yearend 2028 retirement date, TVA spokesperson Scott Brooks told Industrial Info. The nine-unit Kingston station, located in Kingston, Tennessee, has total generating capacity of about 1,398 MW. It began generating electricity in 1954. It had been slated to stop operating by the end of 2027.

TVA did not set new retirement dates for the Cumberland and Kingston stations. Instead, it said it was "taking steps" to keep the plants operating beyond their previously set retirement dates.

Brooks said those steps included:

• Modifications to the air and water permits for both complexes so they can continue to comply with environmental regulations
• Upgrades to the transmission infrastructure at both sites to support operation of both coal and natural gas, and
• Construction of additional infrastructure related to treatment and storage of coal combustion residuals (CCR) at each site.

TVA Chief Executive Officer Don Moul said, "Coal has been a backbone in TVA's balanced portfolio for decades, and the Board's authorization to continue operations at the (Cumberland and Kingston coal) plants ensure the important role they'll play in the future."

In a statement, TVA said the steps were being taken to "align with the (Trump) Administration's energy dominance strategy to prioritize domestic energy production that strengthens America's economy and security." President Donald Trump fired several TVA board members last year and appointed four members of the six-member board to replace them. TVA is a U.S. corporate agency, but receives no taxpayer funding.

The agency provides wholesale electricity to about 153 community-owned power distributors across its seven-state region in the Southeastern U.S. All told, TVA power plants keep the lights on for over 10 million people.

TVA Has Big Capex Program

In the February statement, Moul also said, "Taking steps to continue operations at Cumberland and Kingston and completing new generation under construction are essential to meet surging demand and power our region's growing economy."

The TVA has a large capital program: Industrial Info is tracking about 73 TVA capital projects valued at approximately $51 billion. Subscribers to IIR's Global Market Intelligence (GMI) Power Project Database can view those project reports here.

TVA spokesperson Brooks said that capex program includes:

• Over 3,700 MW of new natural gas under construction at the Kingston, Cumberland, New Caledonia, and Allen sites
• Renewable generation, such as wind and solar, will continue to be built by third parties and added to the TVA system. "Those programs are intact and we continue to add renewable energy to our system. We need all the megawatts we can get from every available source," he said.
• TVA is considering adding a pumped storage hydro project in Alabama.
• The agency is considering adding battery energy storage. It has one demonstration project for up to 20 MW under construction. It plans to add 100 MW of battery storage at the Kingston Energy Complex.

The agency continues to investigate small modular nuclear reactors (SMRs) at various sites in Tennessee, Alabama and Kentucky. TVA also plans to invest in transmission projects and carbon capture and sequestration (CCS) projects.

On February 11, TVA board members were told postponing the retirement dates for the Cumberland and Kingston plants was necessary because "the TVA region is experiencing rapidly increasing demand for electricity that exceeded (years-earlier) expectations. Accelerated electricity demand growth is being driven by growth in data center use, population, employment, and increasing electricity demand." The agency is expecting 2% annual electric load growth across its seven-state service area.

At that same board meeting, TVA approved making up to 150 MW of firm power available to CTC Property LLC for use by xAI, the AI business headed by Elon Musk.

Many Utilities Postponing Planned Coal Retirement Dates

The TVA's decision brings it into alignment with many other U.S. electric utilities that have postponed the planned retirement dates of their coal-fired generators, including:

• Alliant Energy, which pushed back the retirement dates for its Columbia Energy Center and Edgewater Generating Station to 2029 and 2028, respectively.
• Georgia Power, which extended operations of several coal-fired units, including the Bowen and Scherer plants.
• Omaha Public Power District, which is keeping two units at its North Omaha station running for several years after their planned 2023 retirement dates.
• Duke Energy pushed back the planned retirement dates of its five-unit, 3,131-MW Gibson Generating Station in Indiana. The units had been scheduled to retire between 2029 and 2035. Now, all are scheduled to retire in 2038.
• PacifiCorp has delayed the planned closure of over 4,000 MW of coal-fired generation at five sites across Wyoming and Utah.
• Talen Energy has delayed the closure of coal-fired generation at its Braden Shores plant as well as the oil-fired Unit 4 at the H.A. Wagner Generating Station. Both complexes are located in Maryland. The retirement dates have been pushed back from June 2025 to May 31, 2029 after the PJM Interconnection designated both as "reliability must run" plants.
• Vistra Energy Corporation has delayed the closure of the Baldwin Energy Complex in Illinois to 2027.
• Xcel Energy said it may delay the retirement of coal-fired units in Pueblo and Craig, Colorado.

For more on the issue of coal plant retirements being delayed, see February 6, 2025, article - Rising Electric Demand Growth Delays Retirement Dates for Coal-Fired Generation and July 15, 2024, article - Power Plant Owners Continue to Delay Closure of Coal-Fired Generation.

In addition, the US. Department of Energy has ordered coal-fired plants in Michigan, Indiana, Colorado and Washington State to remain open past their scheduled retirement dates to ensure adequate generating capacity for their regions.

Key Takeaways

• The Tennessee Valley Authority Board of Directors approved taking steps to postpone the retirement dates of the two large coal-fired power plants--Cumberland and Kingston.
• The TVA currently is building a number of new power stations, many fueled by natural gas, while it continues to investigate small modular nuclear reactors.
• Strong electric demand growth, including from planned data centers, caused the TVA to postpone the planned retirement dates of Cumberland and Kingston.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).