John Sevier Combined Cycle gas plant began operations April 30th, a month ahead of schedule.
Executives of the Tennessee Valley Authority say they won’t be wooed by cheap natural gas and a new power plant that was built for less than expected. The federal utility reviewed results from the first half of the fiscal year Friday.
One of the few bright spots is the completion of the John Sevier Combined Cycle natural gas plant in upper East Tennessee. It was finished ahead of schedule and $30 million under budget. At the same time, TVA is trying to figure out a way to pay for $2 billion in cost overruns at a nuclear reactor that’s also years behind schedule.
CEO Tom Kilgore says TVA plans to stay the course and has not considered replacing nuclear with natural gas.
“We still believe that a balanced portfolio is the best thing to aim for and then fuel prices will come and go.”
However, the recent low cost of natural gas has helped TVA reduce its dependency on coal by more than a third.
TVA also announced a nearly 11 drop in revenue over the last six months, citing an unusually warm winter. Chief financial officer John Thomas says TVA will trim expenses by spending less on building projects and cutting as many as 1,000 positions.
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