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By EPN Staff
Key Points
  • TVA delaying coal plant retirements: The Tennessee Valley Authority (TVA) Board decided to keep the Kingston and Cumberland coal plants operating beyond their planned retirement dates to ensure reliable electricity while new natural gas plants are being built.
  • Rising demand and extreme weather concerns: TVA cited increasing electricity demand and recent energy emergencies as reasons for the decision. During Winter Storm Fern (Jan. 23–27), coal generation increased 31% and supplied 14% of regional electricity at peak demand, while renewable output declined.
  • The federal government is emphasizing reliable domestic energy production, supporting coal plants through grants and rolling back EPA Mercury and Air Toxics Standards (MATS) to 2012 levels, which is expected to save power plants and customers about $670 million.

The Kingston and Cumberland coal plants will continue to provide electricity beyond their retirement dates thanks to a recent decision by the Tennessee Valley Authority (TVA) Board of Directors.

“TVA is building America’s energy future while keeping the lights on today,” said Don Moul, TVA President and CEO, in a press release. “Our mission is clear: provide reliable, affordable power for the 10 million people we serve. Taking steps to continue operations at Cumberland and Kingston and completing new generation under construction are essential to meet surging demand and power our region's growing economy.”   

In line with the administration’s prioritization of reliable, affordable domestic energy production, TVA will continue coal power generation as the utility builds new natural gas operations at both locations. 

Why it matters 

During Winter Storm Fern, which plunged the southeast into freezing weather conditions on Jan. 23-27, coal power generation increased by 31%. By contrast, solar, wind and hydropower output decreased according to federal sources. TVA’s coal plants provided 14% of the region’s electricity during the coldest moments of the storm. 

“A previous board authorized the retirement of both units at Cumberland and all nine units at Kingston, and their replacement with natural gas generation,” TVA’s CFO Tom Rice said. “Since that time, we’ve seen a number of significant changes, not only in our region, but across the country. Most significantly is a significant increase in electricity demand and the declaration of an energy emergency.”

Coal’s ability to provide reliable power in extreme weather is one of the reasons the administration supports coal. In addition to providing grants to keep retiring coal plants open, the administration has also eased regulatory constraints. 

In February, the Environmental Protection Agency returned the Mercury and Air Toxics Standards for power plants to 2012 levels, which will save power plants and their customers $670 million. The 2012 standards were responsible for reducing acid gas hazardous air pollutant emissions by over 96 percent, and emissions of the non-mercury metals, including arsenic, nickel and lead, by more than 81 percent, according to the EPA press release. 

“The 2012 MATS Rule, reaffirmed by the Trump EPA in 2020, is fully protective of human health risks. Although the Biden-Harris EPA agreed with this conclusion, they charged ahead with a slew of unnecessary, costly and burdensome new requirements based in part on incomplete information,” EPA Deputy Administrator David Fotouhi told the press. 

The bigger picture

Created in 1933 by an act of Congress, the TVA is the nation’s largest public power company. The TVA produces power from three nuclear plants, four coal plants, 17 national gas plants, 29 hydropower plants and nine solar energy sites in four states, Alabama, Kentucky, Tennessee and Mississippi. 

The TVA board is appointed by the president and confirmed by the Senate. In late December, the Senate confirmed four new members. 

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