Alabama Solar Energy Farm Announced

TVA Announces 80 MegaWatt Solar Farm in Lauderdale County Alabama

At their quarterly board meeting, the Board of Directors for the Tennessee Valley Authority moved Thursday, February 12, 2015, to adopt resolutions which would allow TVA President and CEO Bill Johnson to:

• Establish a 20-year Power Purchase Agreement (PPA) with NextEra for electricity from its planned 80MW solar farm in Lauderdale County, AL. The installation would be significantly larger than any existing solar facility in the Tennessee Valley.

and

• Acquire for $340 Million Quantum Utility Generation’s Choctaw combined cycle Natural Gas (NatGas) plant near Ackerman, MS. TVA has been buying power from the 760MW plant since 2008. This would be TVA’s sixth combined cycle plant, with two more under construction, all since 2007.

Confidential terms of the agreements were not released.

Concerning the NatGas plant, Mr. Johnson said, “We can purchase the gas plant for substantially less than it would cost to build one, and the solar power is at a price competitive with other energy sources.”

The board unanimously approved the purchase of Quantum Utility Generation’s 760MW Choctaw combined-cycle power plant near Ackerman, MS, for about $340mn, or $447/kW, half the cost to build a new gas plant, according TVA Chief Operating Officer Charles Pardee.

TVA has bought most of the output of the Choctaw gas plant since 2008. If the deal closes, Choctaw will be the sixth combined-cycle gas plant TVA has purchased or built since 2007. Two more combined cycle plants are under construction.

Since 2007, TVA has built or bought