
Watts Bar nuclear plant in Spring City, Tenn. (image courtesy TVA)
The board of the Tennessee Valley Authority spent Thursday’s meeting hearing about low power demand and tight finances. Then they voted unanimously to spend an additional $2 billion completing a nuclear reactor in Spring City.
TVA’s management described to the board a “diet” program to get through what they call a “rough patch.” Mild weather has led to lower electricity sales, which is good for consumers but bad for TVA’s bottom line. To conserve cash, the agency is scaling back some of its construction projects, but not Watts Bar Unit 2.
Even though it is wildly over budget, TVA board chairman Bill Sansom sees a prudent investment. And he says he’s a little “puzzled” why he and fellow board members thought it could be done for $2.5 billion originally.
“We missed the mark to start with. We recognized it and I think we’ve fixed it. You can comment on the money all you want to – and I know it is big money – but it’s still a good project for TVA to do.”
Opponents to moving forward with Watts Bar asked the board to consider solar and natural gas instead. But Sansom says TVA needs more nuclear power to balance its energy mix and help weather cost fluctuations of any one source.
TVA CEO Tom Kilgore says the additional $2 billion spent on Watts Bar will not have an “immediate effect” on electricity rates.
“Whether or not Watts Bar effects rates further out depends on a multitude of factors.”
Kilgore says ultimately completing the nuclear reactor should help lower, or at least stabilize, the cost of electricity.