SOUTHAVEN — The Tennessee Valley Authority has made a lease-purchase agreement to buy the majority share of a natural-gas fired power plant in Southaven.
TVA and Seven States Power Corp., a group owned by TVA distributors, had bought the Southaven Combined Cycle Plant just south of Memphis in 2008. TVA owned 10 percent, while Seven States owned 90 percent.
Seven States is selling its share to TVA for $400 million. TVA is getting the money from a group of private investors, who will in turn get lease payments from TVA for 20 years. The federal power agency will own the plant at the end of the lease.
By using a lease, the borrowing doesn’t count against TVA’s $30 billion debt cap.
Seven States members will use the money to improve energy efficiency.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info