The Tennessee Valley Authority (TVA) said Dec. 20 that it has collected $150m from an insurer connected with TVA’s claim arising from the Dec. 22, 2008, coal ash spill at the Kingston power plant in Tennessee.
This payment equals the complete policy limits of $150m and represents approximately 13.3% of the regulatory asset established by the TVA Board of Directors to recover the cleanup costs over a 15-year period. TVA made the disclosure in an 8-K reported filed with the Securities & Exchange Commission (SEC).
This payment will reduce the amount of the regulatory asset and the impact of the cleanup expenses on TVA ratepayers. TVA had previously received $92m in proceeds collected from other insurance carriers, which was also used to reduce the amount of the regulatory asset, the federal utility went on to say.
TVA has spent heavily on cleanup, monitoring and litigation in the years following the spill.
TVA has spent just over $1bn so far (at the close of federal FY2013 on Sept. 30, 2013) and remains on track to spend a total of $1.1bn to $1.2 bn by the time the recovery project is completed in early 2015, a TVA spokesperson said Jan. 2.
That excludes costs, if any, from pending litigation now in mediation concerning additional residential property claims, the spokesperson said. One remaining claim against a $50m TVA insurance policy is still outstanding, the TVA spokesperson said.
About five years after the billion-gallon coal ash spill the Environmental Integrity Project (EIP) issued a critical report on TVA’s post-Kingston coal ash disposal practices.
Environmental groups have used the Kingston accident as a rallying cry for tighter regulation of coal ash disposal. The ash spill also complicated industry efforts to encourage recycling of coal ash for beneficial purposes.