The Tennessee Valley Authority (TVA) has completed a lease-purchase transaction that provides US$400m in financing to acquire Southaven Combined Cycle Plant in Desoto County, Mississippi (USA), supporting TVA’s goal of national leadership in low-cost, cleaner energy.
The deal will give TVA sole ownership of the 774 MW CCGT plant near Memphis that TVA has operated under joint ownership since 2008 with Seven States Power Corp., a member-owned generation and transmission cooperative formed by local power companies served by TVA. TVA will lease a 90% interest in Southaven to Southaven Combined Cycle Generation, for which TVA will receive US$400m. TVA will operate the plant under lease for 20 years, will continue to be responsible for all maintenance and fuel for the plant, and will receive all electricity generated from the plant to use in serving TVA customers.
The Southaven power plant consists of three 150 MW and three 109 MW turbines, all commissioned in 2003.
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