TVA buys majority share of power plant for $400M
Published: August 11,2013
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.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- WILLOUGHBY: Bernie Reed cites hard work as key to success of Reed’s Metals
- Half century of memories — Christmas on Deer Creek to celebrate 50th anniversary
- Analyst: KiOR Columbus plant may end up sold as scrap
- (UPDATE) Gov. Bryant: $1.2 billion aluminum plant is a very exciting proposition for the state of Mississippi
- Ex-MDEQ leader Fisher joins Butler Snow
- Can Metrocenter rise from the ashes? Again
- Prescott leads field for Conerly Trophy as state's best football player
- Bryant wants free tuition for students with technical diploma
- Gulf oil rig explosion kills one worker, injures three
- Former MDEQ Executive Director Trudy Fisher joins Butler Snow