Gas-fired power plant leased out by TVA

The Tennessee Valley Authority (TVA) on Jan. 17 completed a lease-purchase transaction that provides $1 billion in financing to support TVA’s vision of low-cost, cleaner energy by 2020.

TVA will lease the John Sevier combined cycle plant to John Sevier Combined Cycle Generation LLC, a limited liability company, for which it will receive $1 billion.TVA will complete the 880 MW natural gas-fired plant, and then lease it back over 30 years. The plant is scheduled to begin commercial operation in the summer of 2012.

"The use of lease-purchase financing gives us greater financial flexibility as we pursue a number of significant capital projects to realize our vision of providing cleaner energy,” Chief Financial Officer John Thomas said.  “We will operate the plant for 30 years under this lease. And at the end of the term, the plant ownership will return to us.”

The financing for the lease purchase consists of a $100 million equity investment and a $900 million bond issue, both of which are secured by TVA’s rental payments.

Read more gas combined-cycle news

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...