The location for the plant was selected succeeding the transmission and gas line studies and is pending the final plant design, review under the National Environmental Policy Act, and environmental permitting.

The company is working with Spectra Energy Partners to evaluate an expansion from its East Tennessee Natural Gas System interstate pipeline to TVA’s John Sevier property. The ETNG pipeline system operates through the states of Tennessee, Virginia, North Carolina and Georgia.

Robert Deacy, senior vice president of Clean Strategies & Project Development, said: “This is the most economical location that we reviewed. TVA already owns the property, and it makes the most sense from a transmission perspective as well.”

The combined-cycle plant construction was approved in June 2009, by the TVA Board, after the US District Court in Western North Carolina set an accelerated timeline for installing new emission controls for the John Sevier plant. Meeting the accelerated schedule would require the plant’s generators to shut down for several months.

Since John Sevier anchors the eastern portion of TVA’s power system, the absence of its generation would augment risk of power supply disruptions and reduce overall power system reliability. TVA is appealing the court’s ruling.

Deacy continued: “This new generation ensures that TVA will have flexibility to meet future power needs in the Tennessee Valley while maintaining transmission reliability in the eastern part of its service area. It will also permit us to minimize future financial risk and continue to meet the goals of TVA’s aggressive emissions reduction program that is improving the region’s air quality.”

The construction of the plant would commence in 2010, once the necessary reviews and approvals are completed, it is expected to commence its services in 2012.